Find Out If Your Business Needs GST (An Updated Guide of 2023)

A taxpayer can become registered for GST by going through the GST registration process. A successful business registration results in the assignment of a special registration number, known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number that the federal government issues to taxpayers after they register. Find out if your business needs GST in this article.

Please take note that if you operate from multiple states, you must complete separate registrations for each one. Let\’s take a closer look at the GST registration process.

Why Should You Register for GST?

The requirement to register as a regular taxable person applies to all businesses that supply goods and have an annual revenue of more than INR 40 lakh. The threshold cap, however, is INR 10 lakh if you run a business in the northeastern states of J&K, Himachal Pradesh, and Uttarakhand.

For service providers, the turnover cap is INR 20 lakh and INR 10 lakh for states under the particular category.

Additionally, the following list of companies must register for GST regardless of their annual revenue:

  • Sporadic taxpayer/input service distributor (ISD)
  • Non-resident taxpaying individual
  • Supplier of goods and services from another country
  • Any service provider who sells products via an online store
  • subject to the reverse charge mechanism and required to pay tax
  • Diductor for TDS/TCS
  • Provider of online data access or retrieval services

If you here to find out if your business needs GST, check out the above-mentioned categories whether you are eligible for those. If you are, check out the documentation you need for further processing.

Which Documents Do You Need for Your Registration?

Depending on the type of business or constitution, the following documents are necessary to obtain GST registration. (A person, a business, etc.)

GST Registration Documents List (Updated for 2023)  

Category of Business     Documents required for GST registration
Individual or sole proprietor– PAN card – Aadhar card – Photograph (JPEG format, maximum size – 100 KB) – Bank account details – Address proof
Partnership company (including LLP)– All partners’ PAN cards (including managing partner and authorized signatory) – A copy of the partnership agreement – A picture of every partner and authorized signatory (in JPEG format, maximum size – 100 KB) – Partners’ addresses as proof (Passport, driving license, Voter’s identity card, Aadhar card, etc.) – Authorized signatory’s Aadhar card – Authorized signatory’s appointment documentation – For LLPs, the registration certificate and LLP Board resolution – Bank account information – Address documentation for the primary place of business

HUF– HUF’s PAN card – Karta\’s PAN card and Aadhar card – A picture of the owner – Bank account information – Address verification for the primary place of business

Public and private companies (Indian and foreign)-PAN card of the company; certificate of incorporation issued by the Ministry of Corporate Affairs; memorandum or articles of association; authorized signatory’s PAN card and Aadhar card. Even in cases where foreign companies or branches are registered, the authorized signatory is required to be an Indian. – A photo of each director and authorized signatory and a PAN card for each director of the company (in JPEG format, maximum size – 100 KB) – A board resolution designating the authorized signatory or another document attesting to their appointment (in JPEG or PDF format, with a maximum size of 100 KB). – Financial information – Address documentation for the primary place of business

GST Registration Categories

Depending on the type of GST registration required, you have to submit different types of documents on the GST portal. This is based on the nature of your company activities.

If you want to find out if your business needs GST, here is a detailed list of documentation requirements for each type of GST registration is provided below:

  • Regular Taxpayers

Businesses with a turnover of more than Rs 40 lakh in a fiscal year must register as normal taxable persons. However, if you own a business in the north-eastern states of J&K, Himachal Pradesh, or Uttarakhand, the threshold limit is Rs 10 lakh.

  • Individuals who Pay Taxes on the Side

If you are an occasional or seasonal business owner, you must register for GST in this category. Businesses must make a deposit equal to the GST liability from their occasional operations.

Registration is valid for three months. Businesses, on the other hand, can apply for renewal and extensions.

  • Non-Resident Taxable Person

Individuals who reside outside India but occasionally supply goods or services to Indian residents as agents, principals, or in other capacities must also register under this category.

During the GST active tenure, the business owner must pay a deposit equal to the anticipated GST liability. The average tenure is three months. You may, however, extend or renew your registration if necessary.

  • Registration of Compositions

If your business has an annual turnover of up to Rs 1 crore, you are eligible for composition scheme registration. You must pay a fixed amount of GST under this scheme, regardless of your actual turnover.

Now that you found out all the details, here is how can you register for it:

GST Registration Procedure

A GST registration is simple and cost-free to get. As a taxpayer, if you want to find out if your business needs GST and now you are seeking a standard registration, go to the GST portal and complete the GST REG-01 registration form.

  • Visit the GST portal here
  • Click “New Registration” after selecting “Registration” from the “Services” tab.
  • Choose \’Taxpayer\’ from the \’I am a\’ drop-down menu.
  • Select the state and district for which registration is required from the State/UT and District drop-down lists.
  • In the Legal Name of the Business field, enter the legal name of the business/entity as it appears in the PAN database.
  • Enter the business\’s or the proprietor\’s PAN in the Permanent Account Number (PAN) field.
  • Enter the primary authorized signatory\’s email address in the email address field.
  • Enter the primary authorized signatory\’s valid mobile number in the mobile number field.
  • Fill out the captcha and press the \’Proceed\’ button.

After you\’ve finished the process, here comes the second part. After verification, you will get a Temporary Reference Number (TRN). The TRN will be sent to the registered email address and mobile number.

  • To log in using the TRN, go to \’Services\’ > \’Registration\’ > \’New Registration\’ and select the Temporary Reference Number (TRN) button.
  • Enter the generated TRN and the captcha text shown on the screen in the TRN field. Then press the \’Continue\’ button.
  • In the verify OTP page, enter the OTP received via mobile or email. And then click the \’Proceed\’ button.



The page My Saved Applications appears next. Click the Edit icon in the Action column.

  • On the top of the page, there is a registration application form with 10 tabs open. Click on each tab to enter information such as business details, promoter/partner details, authorized signatory, principal & additional place of business, goods & services detail, state information, and Aadhaar authentication and verification.
  • Now, select \’Save and continue\’. Once the application has been submitted, digitally sign it with DSC and click \’Proceed.\’
  • Following submission, you will be emailed or texted an Application Reference Number (ARN) to confirm your registration.

Status of GST Registration

When you apply for GST registration, you will be given an Application Reference Number (ARN). A GST registration application is processed 15 days after it is submitted; however, you can check the GST registration status online at the GST portal. Download your certificate when it is up there.

The Closing Thoughts

A GST registration certificate is a legal document that proves a company has registered for GST. Any business in India with a turnover that exceeds the GST registration threshold is required to register.

Anyone eligible can apply for GST registration on the GST portal by going to www.gst.gov.in in a web browser. The registration is approved after the officer has verified your application. If the application was submitted within thirty days of that date, the registration will be effective from the date when liability for registration arises. However, if the submission was delayed, the GST registration is valid from the date it was granted.

Penalty for Failing to Register for GST

All businesses required to register for GST must pay a penalty of 10% of the tax amount payable, up to a maximum of INR 10,000.

If you are here to find out if your business needs GST, hopefully, this article answered all your queries.

FAQs

  • Is it free to register for GST?

Yes, there are no fees associated with registering for GST.

  • What types of income are eligible for GST?

To qualify for GST registration, a minimum of 40 lakh INR (supply of goods in normal state), 20 lakh INR (supply of goods/services in normal state), 20 lakh INR (supply of goods in a specific state), or 10 lakh INR (supply in a specific state) would be required.

  • GST: Is it required?

Yes, once your revenue exceeds the predetermined threshold, you must register for GST.

  • How long does it take to register for GST?

It typically takes 2 to 6 working days to register for GST.

About

Hi! I’m Dr. Hemapriya — owner of THREE thriving eCom businesses with over 14 crores (and counting!) in revenue.

I’m also an ADHD, multi-tasking Mom to two adorable kids and wife to one very passionate Pediatric Surgeon.

My eCom journey started in 2014 with the launch of the My Little Moppet brand.

Over the years, I’ve added two other businesses to my portfolio — Ancient Madurai and Soundaryah

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