GST registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration.
Please note – If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
Now, you must be wondering if every business is required to register under GST? Let’s understand GST registration and its procedure in detail.
Who should register for GST?
All the businesses supplying goods whose turnover exceeds INR 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is INR 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.
The turnover limit is INR 20 lakh, and in the case of special category states, INR 10 lakh, for the service providers.
Also, here is the list of certain businesses for which GST registration is mandatory irrespective of their turnover:
Casual taxable person / Input Service Distributor (ISD)
Non-resident taxable person
Inter-state supplier of goods and services
Supplier of goods through an e-commerce portal
Any service provider
Liable to pay tax under the reverse charge mechanism
TDS/TCS deductor
Online data access or retrieval service provider
Advantages of GST registration
Legal recognition of a business
Uniform accounting of taxes
Businesses will be eligible to avail of several benefits under the GST regime
Legal authorisation of collecting tax from sales made
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