GST Registration: A Complete Guide for Businesses

What is GST Registration?

Businesses that reach a certain turnover limit must register for GST (Goods and Services Tax). Those involved in activities like ecommerce, selling between states, or exports also need it. It gives a unique GST Identification Number (GSTIN). This number is important. It helps with following the law. It's also necessary for claiming the input tax credit (ITC). Additionally, it is necessary for doing business in different states or union territories in India. Whether you are a proprietorship, LLP, company, or freelancer, GST registration ensures smooth tax filing and avoids penalties. Users complete the process online through the GST portal. You will get the registration certificate in 3 to 7 working days after approval.

Who Needs GST Registration?

As per the GST Act, the following entities must register for GST:

1. Businesses that make more than ₹40 Lakhs in sales (or ₹20 Lakhs for Special Category States) sell goods or services all over India.
2. E-commerce Sellers and Aggregators – Online businesses, like Amazon and Flipkart sellers, must register, no matter their sales.
3. Inter-State Suppliers – Businesses selling goods/services outside their home state.
4. Casual Taxable Persons & Non-Resident Taxpayers – Temporary businesses must register even for short-term operations.
5. SEZ Developers & Exporters – Special Economic Zone (SEZ) units need GST for duty exemptions.
6. Input Service Distributors (ISD) & TDS Deductors – Entities under reverse charge mechanism. If your business falls under any of these categories, you must obtain GST registration to operate legally.

Documents Required for GST Registration

The documents required for GST registration vary based on business type:

For Proprietorship (New GST Registration Documents for Proprietorship)

• PAN Card of the proprietor
• Aadhaar Card
• Proof of Business Address (Electricity bill, rent agreement, or property tax receipt)
• Bank account details (cancelled cheque or statement)
• Photograph of the proprietor

For Partnership Firms & LLPs

• Partnership deed or LLP registration certificate
• PAN of all partners
• Address proof of partners
• Authorized signatory details

For Companies (Private Ltd, OPC, etc.)

• Certificate of Incorporation
• Memorandum of Association (MOA)
• PAN & ID proof of directors
• Digital Signature (DSC) of directors

Additional Documents (If Applicable)

• SEZ Developer approval letter
• Letter of Authorization for authorized signatory All documents must be uploaded in PDF/JPEG format on the GST portal.

GST Registration Fees & Charges

The GST registration cost depends on the method chosen:

The government does not charge a fee for GST registration, but you will incur professional fees if you hire an expert.

How to Get GST Number for Business? (Step-by-Step Process)

The GST registration process is entirely online. Follow these steps:

Step 1: Visit the GST Portal

Go to www.gst.gov.in and click "Register Now" under the "Taxpayers" tab

Step 2: Fill Part-A (Temporary Reference Number - TRN)

• Enter PAN, mobile number, and email ID.
• We will send an OTP for verification.

Step 3: Submit Part-B (Business Details)

• Enter business name, principal place of business, and bank details.
• Submit necessary documents (PAN, address proof, etc).

Step 4: Verification & ARN Generation

• Submit with Digital Signature (DSC) or E-sign (for proprietors).
• The system generates an Application Reference Number (ARN).

Step 5: GSTIN Approval

• The GST officer reviews documents.
• If authorities approve it, they issue the GSTIN within 3-7 days

How Many Days to Get GST Number?

• Normal Cases: 3-7 working days after ARN generation.
• If Additional Documents Required: Up to 10-15 days.
• Rejection Scenarios: Amendments are required within a week. Once approved, the GST registration certificate is available for download from the GST portal.

GST Registration for Online Business

If you run an online business (e-commerce, dropshipping, etc.), GST registration is mandatory if:

• You sell on Amazon, Flipkart, Meesho, etc.
• Your turnover exceeds ₹20/40 lakhs.
• You supply goods/services across states

Steps to Get GST Number for Online Business

1. Register as a "Regular Taxpayer" on the GST portal.
2. Choose "Yes" when asked "Do you sell products via e-commerce?"
3. Provide marketplace information (Amazon/Flipkart Seller ID).
4. After approval, show GSTIN on your e-commerce site.

Penalties for Not Registering Under GST

1. Late Fees: ₹100/day (₹50 CGST + ₹50 SGST), up to ₹5,000.
2. Tax Liability: 18% interest on unpaid tax.
3. Business Closure: Authorities can suspend operations for non-compliance

PSR Compliance Consultant for GST Registration

Navigating GST registration can be complex, especially for startups, e-commerce sellers, and foreign entities. Here’s why hiring PSR Compliance Consultant is beneficial:

1. Expert Guidance on Eligibility & Documentation
   • Determines if your business needs GST registration based on turnover and supply type.
   • Ensure that you correctly submit all documents (PAN, address proof, bank details) to avoid rejections.
2. Faster Processing (1-3 Working Days)
   • Avoids common errors that delay approval.
   • Direct liaison with GST officers for quick resolution.
3. Compliance with Latest GST Rules
   • Updates on changing regulations (e.g., state-wise thresholds, e-commerce GST rules).
   • Helps classify your business correctly (Regular, Composition, or SEZ).
4. Hassle-Free GST Portal Navigation
   • Manages Part-A (TRN) and Part-B (ARN) filings.
   • Assists with Digital Signature (DSC) or E-sign submissions.
5. Post-Registration Support
   • Guides on GST return filing, invoicing rules, and input tax credit (ITC) claims.
   • Resolves notices or discrepancies from tax authorities.
6. Cost & Time Savings
   • Avoids penalties because of late registration.
   • Reduces reapplication risks from document errors.

Case Study: How PSR Helped an E-commerce Seller

A Delhi-based Amazon seller applied for GST but faced rejection because of incorrect business address proof. The PSR Compliance Consultant fixed the error. They submitted a valid electricity bill and got the GSTIN in 2 days. This allowed the seller to start operations without delays.

Still Confused About GST Registration?

Let PSR Compliance Consultant handle your GST registration smoothly—from document preparation to approval

Reach Out Now for a Complimentary Consultation!

Frequently Asked Questions (FAQs) on GST Registration

1. Is GST registration mandatory for small businesses?

• Yes, if your total sales are over ₹40 lakhs (or ₹20 lakhs for special states) or if you sell goods or services between states. E- commerce sellers must register regardless of turnover.

2. What is the cost for new GST registration?

• The government does not charge a fee. However, professional consultants may charge between ₹1,500 and ₹5,000. This depends on the type of business and the help needed.

3. How long does it take to get a GST number?

• Typically, 3-7 working days after document submission. Additional verification may cause delays.

4. Can I apply for GST registration without a business address proof?

• No, you need to submit a valid electricity bill, rent agreement, or property tax receipt. This is proof of your main place of business.

5. Do freelancers need GST registration?

• Only if their annual income exceeds ₹20 lakhs (₹10 lakhs for special states). However, interstate service providers must register regardless of turnover.

6. Can I register for GST myself?

• Yes, you can apply for free via the GST portal, but hiring a professional ensures accuracy and faster approval.

7. What happens if I don’t register under GST?

• Penalties include:
  1. Late fees of ₹100/day (₹50 CGST + ₹50 SGST).
  2. 18% charge on overdue tax.
  3. Possible business suspension.

8. Can I cancel my GST registration?

• Yes, if you close your business or fall below the turnover threshold. You must file Form GST REG-16 on the GST portal.