GST registration

What it is

GST registration gives your business a 15 digit GSTIN. With it you can legally collect GST from customers, claim input tax credit on your purchases and issue GST invoices. There is no government fee for registration.

The ISPEED package includes the registration certificate, a simple GST invoice format, and registration under either the regular scheme or the composition scheme, depending on what suits your turnover and customers.

When registration is compulsory

Registration is mandatory once aggregate turnover in a financial year crosses the threshold. The general limit is Rs. 40 lakh for supply of goods and Rs. 20 lakh for services in most states. Lower limits of Rs. 10 lakh or Rs. 20 lakh apply in the special category states of the north east and the hills. Check the limit for your state before deciding. The application must be filed within 30 days of becoming liable.

The following persons must register regardless of turnover:

• Anyone making an inter-state taxable supply of goods
• Casual taxable persons making a taxable supply
• Persons who must pay tax under reverse charge
• Non-resident taxable persons making a taxable supply
• Input service distributors, whether or not separately registered
• Agents supplying goods or services on behalf of another person
• Persons selling through e-commerce operators such as Amazon or Flipkart, subject to the exemptions notified by the government from time to time
• Every e-commerce operator, such as ride hailing and marketplace platforms
• Persons providing online information and database access from outside India to Indian customers
• Persons required to deduct TDS under GST, such as government departments, whether or not otherwise registered
• Anyone else notified by the government from time to time

Who does not need to register

• Persons supplying only goods or services that are not liable to tax or are wholly exempt from GST
• Agriculturists, to the extent of supply of produce from cultivation of land
• Persons below the threshold who do not fall in any compulsory category, though they may register voluntarily
• Anyone else notified by the government from time to time

Benefits

• Your business is legally recognised as a supplier of goods or services.
• Input tax credit flows from suppliers to recipients across the country, so tax is paid only on value added.
• You can claim input tax credit on taxes paid on purchases and use it to pay tax due on your sales.
• You are legally authorised to collect tax from customers and pass on the credit to them.
• Most business customers, marketplaces and government tenders require a GSTIN before they will deal with you.

Composition scheme

• Small taxpayers with turnover up to Rs. 1.5 crore (Rs. 75 lakh in some special category states) for goods, or up to Rs. 50 lakh for services, can opt to pay tax at a fixed low rate on turnover.
• Returns are simpler: quarterly payment in CMP-08 and one annual return in GSTR-4.
• A composition dealer cannot collect GST from customers, cannot claim input tax credit and cannot make inter-state supplies.
• ISPEED helps you decide whether regular or composition registration is better for your business.

Documents you will need

• PAN and Aadhaar card of the proprietor, partners or directors, with a photograph
• Electricity or water bill of the business place, not older than two months
• Rent agreement and no objection certificate from the owner if the premises are rented; property papers if owned
• Proof of constitution of business: partnership deed, LLP agreement, or certificate of incorporation with MOA and AOA
• Proof of appointment of the authorised signatory: board resolution or authorisation letter
• Bank account proof: cancelled cheque, first page of passbook or a bank statement
• Proof of any additional place of business