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  • Incorporation Certificate in 14 - 21 days
  • Company PAN+TAN
  • DIN for directors

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  • SPICe+ form filing in 14 days*
  • Incorporation Certificate in 14 - 21 days
  • Company PAN+TAN
  • DIN for directors

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Companies Act, 2013 (India)

Companies Act 2013 is an Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.

Goods and Services Tax (GST) is a comprehensive indirect tax system implemented in many countries, including India, to unify the taxation of goods and services. GST registration is the process through which businesses and service providers register themselves under the GST regime, allowing them to collect GST on sales and claim input tax credits on purchases. GST registration is a crucial step for businesses operating in the GST regime, offering benefits such as input tax credits and legal recognition. Understanding the registration process and compliance requirements is essential for efficient business operations and tax management.

The benefits of GST registration are significant. Firstly, it enables businesses to claim input tax credit, allowing them to offset the GST paid on their purchases against the GST collected on sales, thus reducing their overall tax liability. Additionally, being GST registered enhances the credibility of the business, making it more appealing to customers and suppliers. It also streamlines compliance and reduces the administrative burden associated with multiple indirect taxes, as businesses only need to comply with one unified tax system. Registered businesses can also participate in government tenders and contracts, which often require GST registration as a prerequisite.

 

Input Tax Credit (ITC)

One of the most significant benefits of GST registration is the ability to claim input tax credits on purchases. Businesses can offset the GST paid on inputs against the GST collected on sales, reducing their overall tax liability.

Legal Recognition

GST registration provides legal recognition to the business. It establishes the business as a legitimate entity, enhancing credibility with customers, suppliers, and financial institutions.

Simplified Tax Compliance

GST unifies multiple indirect taxes (like VAT, service tax, and excise duty) into a single tax. Registered businesses benefit from simplified compliance, as they only need to adhere to one tax structure, making it easier to manage and file taxes.

Competitive Advantage

Registered businesses are perceived as more trustworthy and professional. This can lead to better relationships with suppliers and customers, potentially increasing sales and market opportunities.

Access to E-commerce Platforms

Many e-commerce platforms require sellers to be GST registered. Registration allows businesses to sell their products through these platforms, expanding their reach and market presence.

Participation in Government Contracts

Government tenders and contracts often require vendors to be GST registered. Being registered opens doors to government business opportunities.

The eligibility criteria for GST registration can vary based on the type of business and the applicable laws in each jurisdiction. Here’s a summary of the general eligibility criteria for GST registration in India:

  • Turnover Threshold:

    • Businesses with an aggregate turnover exceeding ₹20 lakh (₹10 lakh for special category states) in a financial year are required to register for GST.
  • Interstate Supply:

    • Businesses engaged in making inter-state supplies (selling goods or services across state borders) must register, regardless of their turnover.
  • E-commerce Operators:

    • E-commerce operators and those selling goods/services through e-commerce platforms must obtain GST registration, irrespective of their turnover.
  • Casual Taxable Persons:

    • Individuals or businesses making taxable supplies occasionally (e.g., participating in exhibitions or trade fairs) without a fixed place of business need to register as casual taxable persons.
  • Non-Resident Taxable Persons:

    • Foreign entities supplying goods/services in India are required to register under GST.
  • Taxable Person under Composition Scheme:

    • Small businesses with turnover up to ₹1.5 crore (or ₹75 lakh for special category states) can opt for a composition scheme, requiring them to register under GST.
  • Branch Offices:

    • If a business has multiple branches in different states, each branch must obtain separate GST registration.
  • Company or Firm:

    • Companies, partnerships, or any legal entity conducting taxable activities are required to register for GST.
  • Liability to Pay Tax:

    • Any person or business that is liable to pay GST on the supply of goods or services must obtain registration.

As per the MCA, a checklist has to be met for registering your company. Here is a clear outline of a checklist for private limited company registration to follow:

  • Determine Eligibility: Check turnover and interstate supply status.
  • Choose Registration Type: Regular taxpayer, composition scheme, casual, or non-resident.
  • Visit GST Portal: Start registration at www.gst.gov.in.
  • Fill Application Form: Complete GST REG-01 and upload documents.
  • Submit Application: Note the Application Reference Number (ARN).
  • Await Verification: Respond to any requests for additional information.
  • Receive GST Certificate: Get your GSTIN upon approval.

The following necessary documents are crucial for Private limited company registration in India:

  • PAN Card for the business and partners.
  • Identity Proof (Aadhaar, passport) of partners/directors.
  • Address Proof of the business and partners.
  • Photographs of partners/authorized signatories.
  • Business Registration Documents (e.g., Certificate of Incorporation).
  • Proof of Business Address (lease/rental agreements).
  • Bank Account Details.

Documents necessary for filing SPICe+ form (INC-32) for the registration of a private limited company are outlined as follows:

A. For Indian Nationals serving as directors and subscribers:
  • Affidavit on stamp paper: a declaration by all subscribers affirming their intention to become shareholders of the company
  • Office address proof like the Rental Agreement or Ownership Deed
  • Electricity bill, water bill and other utility bills of the last two months
  • Copy of approval if required
  • Trademark registration details
  • NOC from property owner
  • Proof of identity and address
B. Required Documents For Foreign Nationals serving as directors/Shareholders
  • Passport: Proof of identity
  • Address proof: Accepted documents include a driving license, residence card, bank statement, or government-issued identification with a valid address.

Types of GST Registration

Here are the main types of GST registration

Regular Taxable Person

This registration is for businesses with a turnover exceeding the threshold limit (₹20 lakh or ₹10 lakh for special category states). Regular taxpayers can charge GST on their sales and claim input tax credits on purchases.

Composition Scheme

Designed for small businesses with a turnover up to ₹1.5 crore (or ₹75 lakh for special category states). This scheme allows them to pay a fixed percentage of their turnover as tax, simplifying compliance. However, they cannot claim input tax credits and have limited sales options.

Casual Taxable Person

This is for individuals or businesses making occasional taxable supplies (like participating in trade fairs or exhibitions) without a fixed place of business. They must register for GST before making any supply and are required to pay tax in advance.

Non-Resident Taxable Person

This registration is for businesses with a turnover exceeding the threshold limit (₹20 lakh or ₹10 lakh for special category states). Regular taxpayers can charge GST on their sales and claim input tax credits on purchases.

Input Service Distributor (ISD)

Designed for small businesses with a turnover up to ₹1.5 crore (or ₹75 lakh for special category states). This scheme allows them to pay a fixed percentage of their turnover as tax, simplifying compliance. However, they cannot claim input tax credits and have limited sales options.

Casual Taxable Person

This is for individuals or businesses making occasional taxable supplies (like participating in trade fairs or exhibitions) without a fixed place of business. They must register for GST before making any supply and are required to pay tax in advance.

Here are the key characteristics of GST registration:

  • Legal Requirement: Mandatory for businesses meeting certain criteria to ensure tax compliance.
  • Unique GST Identification Number (GSTIN): Assigned upon registration for all GST-related transactions.
  • Input Tax Credit (ITC): Allows registered taxpayers to claim credits on GST paid for purchases, reducing tax liability.
  • Regular Filing Obligations: Requires periodic filing of GST returns, ensuring transparency and accountability.
  • Compliance with GST Norms: Businesses must adhere to specific accounting and invoicing standards.
  • Eligibility for Composition Scheme: Small businesses can opt for a simplified tax structure but forgo input tax credits.
  • Interstate Trade Facilitation: Enables smooth interstate transactions under a unified tax system.
  • Enhanced Credibility: Provides legal recognition, improving credibility with customers and suppliers.
  • E-commerce Compliance: Necessary for businesses selling through e-commerce platforms.
  • Impact on Pricing: Registered businesses must include GST in their pricing structure.
  • Provision for Audit: Registered businesses may be subject to audits by tax authorities.
  • Scope for Penalties: Non-compliance can result in penalties and legal repercussions.

Here’s a detailed outline of the GST registration process:

step
  • Visit the GST Portal:

  • Select ‘Register Now’:

    • Click on the “Register Now” button under the “Taxpayers” section on the homepage.
  • Choose Application Type:

    • Select the appropriate type of registration (e.g., New Registration, Amendment, etc.).
  • Fill GST Application Form (GST REG-01):

    • Complete the application form with the following details:
      • Name of the business
      • Type of business (e.g., sole proprietorship, partnership, company)
      • PAN (Permanent Account Number)
      • State and district of the business
      • Address of the business
      • Details of partners or directors (if applicable)
      • Bank account details (account number, IFSC code)
  • Upload Required Documents:

    • Prepare and upload necessary documents, including:
      • PAN card of the business and partners/directors
      • Identity proof of partners/directors (Aadhaar, passport, etc.)
      • Address proof of the business (utility bill, rental agreement, etc.)
      • Business registration documents (if applicable)
      • Passport-sized photographs of partners/directors
  • Verification of Mobile Number and Email:

    • Provide a valid mobile number and email address. You will receive an OTP (One-Time Password) for verification. Enter the OTP to confirm your contact details.
  • Submit Application:

    • After filling out the application form and uploading documents, review all information for accuracy. Once confirmed, submit the application.
  • ARN Generation:

    • Upon successful submission, you will receive an Application Reference Number (ARN) via email and SMS. This ARN can be used to track the status of your application.
  • GST Officer Verification:

    • The application will be reviewed by a GST officer. They may request additional information or documents if necessary. Respond promptly to any queries.
  • Approval of Application:

    • If the application is approved, you will receive your GST registration certificate and GST Identification Number (GSTIN) via email.
  • Download GST Certificate:

    • Log in to the GST portal using your credentials and download the GST registration certificate for your records.

The GST registration process is straightforward but requires careful attention to detail. By following these steps and ensuring all documents are accurate and complete, businesses can successfully register under GST and enjoy the benefits of compliance in the tax regime.

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