GST Registration Threshold limit | GST Registration Requirements: Threshold Limits, Required Documents, and More

 

 

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GST Registration Requirements: Threshold Limits, Required Documents, and More

Understanding the requirements for GST registration is essential for any business operating in India. Whether you are a small startup or an established enterprise, obtaining GST registration is the first step towards compliant business operations. This article provides an in-depth overview of GST registration requirements, focusing on threshold limits, the required documents, and different types of GST registration. The discussion is designed to be engaging and easy to understand.

What is GST Registration?

GST registration is the process by which a business obtains a unique GST Identification Number (GSTIN) from the tax authorities. This registration authorizes the business to collect GST on sales and claim Input Tax Credit (ITC) on eligible purchases. Registration also enables a business to legally supply goods and services across India.

GST Registration Threshold Limits

One of the key elements in GST registration is the threshold limit. Businesses must register for GST if their turnover exceeds the prescribed limits. The threshold limits vary based on the type of supply and the nature of the business.

For Goods Suppliers

• General Threshold: Businesses engaged in the supply of goods must register if their aggregate turnover exceeds  ₹40 lakh  in a financial year.
• North-Eastern States (Special Category*): In certain North-Eastern states, the threshold is lower, typically ₹20 lakh.

For Service Providers

• General Threshold: Service providers are required to register if their aggregate turnover exceeds  ₹20 lakh  per annum.
• North-Eastern States (Special Category): This limit may be lower, usually around  ₹10 lakh. 

 

Category	Goods Supply Threshold	Services Supply Threshold	Applicable States
Normal Category States	₹40 lakh	₹20 lakh	All states except special category states
Special Category States	₹20 lakh	₹10 lakh	Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Jammu & Kashmir

Special Cases - Mandatory Registrants (regardless of turnover):

• Inter‑state suppliers
• Casual taxable persons (those carrying out temporary business activities)
• Non‑resident taxable persons
• Persons liable under the reverse charge mechanism
• E‑commerce operators and sellers on e‑commerce platforms
• Input Service Distributors
• Tax deductors or collectors under GST

These rules ensure that all entities engaged in taxable supply—including those operating across state lines—comply with a standardized tax system. For example, even if a business’s turnover is below the prescribed limit, if it is engaged in interstate transactions, registration is compulsory.

Required Documents for GST Registration

To complete the GST registration process, businesses must submit several documents. The common list of required documents includes:

General Documents Required (All Entities)

Regardless of the type of business, several standard documents are required:

• PAN Card:
  • The Permanent Account Number serves as the primary identification.
• Aadhaar Card (for individuals/sole proprietors):
  • Used for identity and address verification.
• Photograph:
  • Passport‑size photographs (typically in JPEG format and ≤100 KB) of the owner, authorized signatories, or directors.
• Proof of Business Registration/Constitution:
  • For companies: Certificate of Incorporation, Memorandum and Articles of Association (MOA/AOA).
  • For partnerships: Partnership Deed.
  • For trusts/societies: Registration certificate or trust deed.
• Business Address Proof:
  • Could be any one from property tax receipts, municipal khata copy, electricity bills, or rental agreements (sometimes accompanied by a No Objection Certificate [NOC] from the property owner when rented).
• Bank Account Details:
  • Upload a copy of a canceled cheque, front and back page of a bank passbook, or bank statement.
• Digital Signature Certificate (DSC):
  • For companies or LLPs where electronic authentication is mandatory.
• Contact Details:
  • A valid mobile number and email address used for OTP verifications and status updates.

Documents Based on Business Structure

A. Sole Proprietorship / Individual:

• PAN card, Aadhaar card, passport‑size photo
• Proof of business address (electricity bill, rent agreement, or property tax receipt)
• Bank details (canceled cheque)

B. Partnership Firms / LLPs:

• PAN card of the firm and PANs of partners
• Partnership Deed or LLP Agreement
• Aadhaar cards and photographs of the partners
• Proof of registered office address and bank account details
• For LLPs, the registration certificate and board resolution/authorization (often via DSC) are additionally required.

C. Companies (Private Limited, Public Limited, One Person Company):

• Certificate of Incorporation along with MOA and AOA
• PAN card of the company
• PANs, Aadhaar cards, and photos of directors and authorized signatory
• Board resolution for appointment of the authorized signatory
• Proof of registered office address (as mentioned earlier) and bank account documents

D. Hindu Undivided Family (HUF):

• PAN of the HUF and PAN/Aadhaar of the Karta (head of the HUF)
• Photograph, office address proof, and bank details

E. Trusts, Societies, or Clubs:

• Registration certificate or trust deed
• PAN of the entity, along with PAN and Aadhaar of the trustees/partners
• Photographs, address proof, and bank details

Additional Documents (Based on Specific Scenarios)

Certain scenarios require extra documentation:

• For Importers/Exporters:
  • Import Export Code (IEC) issued by DGFT.
• For Special Economic Zones (SEZ):
  • Approval letters and certificates issued by the Development Commissioner.
• For Reverse Charge Mechanism cases:
  • Any additional documents as prescribed by the GST authorities.
• For authorized representatives or when applying through an intermediary:
  • Letter of Authorization or Board Resolution.

Types of GST Registration

GST registration is not a one-size-fits-all process. Different types of registrations cater to different business categories:

1. Regular GST Registration:
   • For businesses that cross the prescribed turnover limits. Registration under this scheme requires regular filing of monthly or quarterly returns.
2. Composition Scheme Registration:
   • Designed for small taxpayers with turnover up to Rs. 1.5 crores (for goods; lower for service providers and special category states). Tax is paid at a fixed rate on turnover without the facility to claim input tax credit.
3. Casual Taxable Person Registration:
   • For individuals or entities that occasionally engage in taxable activities (e.g., participation in trade fairs or temporary stalls) and do not have a fixed place of business in India.
4. Non-Resident Taxable Person Registration (NRTP):
   • For persons or businesses established outside India but supplying goods or services in India.
5. Input Service Distributor (ISD) Registration:
   • For businesses with multiple units or branches that need to distribute the input tax credit centrally.
6. TDS/TCS Registration:
   • Required for persons mandated to deduct (TDS) or collect (TCS) tax at source under GST law.
7. E-commerce Operator Registration:
   • Mandatory for electronic commerce operators facilitating the sale of goods or services.
8. Registration for UN Bodies / Embassies / Other Notified Entities:
   • Special registration for entities notified by the government that are exempt from standard norms (also known as UIN registration).
     

The GST Registration Process (Online)

Step-by-Step Guide:

1. Access the GST Portal:
   • Visit the official GST website (https://www.gst.gov.in/) and select “New Registration” under the “Taxpayers (Normal/TDS/TCS)” section.
2. Provide Basic Details:
   • Enter your PAN, legal name, email address, and mobile number. An OTP is sent to both email and mobile for verification.
3. Receive a Temporary Reference Number (TRN):
   • After initial verification, you are issued a TRN which you must note for further steps.
4. Fill in Detailed Information:
   • Use the TRN to log in and fill out the detailed GST registration form. This includes business details, promoter/director details, address information, and bank account details.
5. Upload Documents:
   • Attach the required documents as per your business type. Ensure files are in the correct format (PDF or JPEG) and do not exceed the file size limit (typically 100 KB per document).
6. Application Submission and Verification:
   • Review the application, correct any errors, and submit. You will receive an Application Reference Number (ARN).
7. Issuance of GSTIN:
   • The tax authorities verify the submitted information and, if all details are in order, issue a GST registration certificate along with your GSTIN.

Benefits of GST Registration

• Legal Compliance: GST registration is mandatory for conducting interstate business and helps avoid penalties.
• Input Tax Credit (ITC): Registered businesses can claim ITC on eligible purchases, reducing overall tax liability.
• Enhanced Credibility: A GSTIN builds credibility with customers, vendors, and government agencies.
• Easier Access to Markets: GST-registered businesses can transact seamlessly across state borders.

FAQ on GST Registration 

What is the GST registration threshold limit for goods?

Businesses engaged in supplying goods must register if their aggregate turnover exceeds ₹40 lakh per annum, or ₹20 lakh in certain North-Eastern states.

What is the threshold for service providers?

Service providers are required to register if their aggregate turnover exceeds ₹20 lakh per annum, with a lower limit in North-Eastern states.

Which documents are required for GST registration?

Common documents include PAN, proof of business constitution, proof of business address, bank account details, identity proof and photographs, DSC (if applicable), and authorization documents.

Do I need to register for GST if I make interstate supplies?

Yes, registration is mandatory for any business engaged in interstate supplies, regardless of turnover.

What is a composition scheme in GST?

The composition scheme is a simplified GST registration option for small taxpayers with a turnover below specified limits, but such taxpayers cannot claim ITC.

Who must register as a Casual Taxable Person?

A Casual Taxable Person, who operates without a fixed place of business, must register for GST even if the turnover is below the threshold limit.

What is an ISD registration?

ISD registration is required for businesses with multiple branches under the same PAN to ensure proper distribution of ITC on common input services.

Can non-resident businesses register for GST?

Yes, non-resident taxable persons must register for GST if they supply goods or services in India.

Is a Digital Signature Certificate (DSC) mandatory for GST registration?

DSC is mandatory for companies and LLPs but not required for individual proprietors in most cases.

Where can I apply for GST registration?

GST registration applications can be submitted online via the official GST portal (https://www.gst.gov.in).

Conclusion

GST registration is a critical step for any business operating in India, enabling legal compliance, access to Input Tax Credits, and smoother interstate transactions. By understanding the threshold limits, required documents, and different registration types, you can ensure that your business is correctly registered and fully compliant with the GST law. For further guidance on GST registration, consult official resources or a qualified GST professional. Stay informed and leverage the benefits of a properly registered business to boost your growth and credibility.

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*Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand