GST registration is required under the Goods and Services Tax (GST) regulations for every person or business that maintains yearly revenue of more than INR 40 lakh, INR 20 lakh, or INR 10 lakh, depending on the conditions applied.
A registration number known as the Goods and Services Tax Identification Number (GSTIN) is granted by the government to the businesses who register for GST.
Any business operating in multiple states must also be registered for GST in each of these states. There are also provisions for suspension, cancellation, and revocation of cancellation of GST by competent authorities under various conditions as applicable under the rules and regulations of Goods and Services Tax.
GST Registration Overview
Goods and Services Tax (GST) registration is a mandatory process for businesses in many countries, aimed at streamlining indirect taxation. It unifies various taxes into a single structure, simplifying compliance. To register, businesses must meet certain turnover criteria. Once registered, they obtain a unique GST identification number.
This facilitates the seamless flow of credits across the supply chain. Compliance involves filing regular returns and adhering to GST guidelines. Registration ensures legitimacy and allows businesses to collect and pass on GST, contributing to the overall efficiency of the tax system. Non-compliance may result in penalties, making GST registration a crucial aspect of business operations.
Key Features of the GST Registration
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Businesses with annual revenue exceeding INR 40 lakh (for entities engaged in trade of goods and services) or INR 20 lakh (for entities engaged in the service sector) must be registered under GST.
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A business operating in one of the northeastern states—Jammu and Kashmir, Himachal Pradesh, Uttarakhand, or Tripura, the ceiling is INR 10 lakh.
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Businesses eligible for registration under the composition plan with a yearly turnover of up to INR 1 crore are required to pay a set amount of GST regardless of their revenue.
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It is an offense to carry out business operations without registering under the GST if it satisfies the conditions mentioned above.
Who is Eligible for the GST Registration?
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Companies with revenue of more than INR 40 lakh, INR 20 lakh, or INR 10 lakh, depending on the circumstance.
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An occasional tax payer
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A non-resident taxpayer
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People who are covered by pre-GST legislation like excise, VAT, or service tax.
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Distributor of input services and interstate suppliers
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Every supplier who uses an e-commerce systems
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A source-based tax collector or deductor.
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Any organization may voluntarily register for GST.
Documents Required For GST Registration
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Permanent Account Number (PAN).
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Aadhar Card.
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Business incorporation certificate
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Proof of Identity and address
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Bank account details
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Digital signature.
Online Process of GST Registration
The GST registration process is a simple process to be done online. The online GST registration method is described in detail below.
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Go to the GST website
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Click "new registration."
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Choose the "taxpayer" option from the drop-down menu.
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There will be both Parts A and B of the registration format.
Process in Part A:
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Select the state and district where GST registration is necessary.
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Enter the the legal name of the company or entity as per PAN
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Provide the permanent account number (PAN) of the company or the owner
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Add mobile number and registered email address.
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A temporary reference number (TRN) will be given following the verification in the registered email address and mobile number.
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Proceed to Part B of the registration process within 15 days.
Part B Process:
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Go to the “new registration” option.
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Fill the required details to proceed further.
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Enter OTP sent on mobile or email and proceed.
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The registration form will be displayed with different tabs.
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Click on each tab to enter the details
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Click on “save and continue”. Once the application is submitted, sign it digitally and proceed.
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An Application Reference Number (ARN) will be sent on email or mobile to confirm your registration process.
Benefits of The GST Registration
Some of the benefits of GST registration are that it is beneficial for customers, businesses and government, as it helps reduce tax evasion and provides legal recognition to a business. It also helps to bring in uniformity in accounting of taxes and regularize the unorganized sectors such as construction. The GST registration process is fully online and easy to follow.
GST Suspension
If a taxpayer violates the GST law or any of its connected regulations, their GST registration may be suspended.
Reasons for GST Suspension
The suspension of GST registration can happen for a number of reasons, as listed below.
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If the organizational structure of the company changes.
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If a business is sold, merged, or shut down.
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If the taxpayer voluntarily requests the cancellation of their registration.
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If the authorized officer finds that the GST registration was obtained illegally, the registration may be suspended.
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Registration will be suspended if the business is found to be operating in a location different from that specified during registration.
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A company's registration may be suspended if it fails to start operation officially within six months of registration.
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If it is revealed that the taxpayer has sent invoices without delivering the goods or services.
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If the taxpayer doesn't supply appropriate bank account information after receiving a warning, the registration may be suspended.
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If a composition plan participant has failed submitting its GST return for continuous three tax periods.
GST Cancellation
A business or individual registered under GST can voluntarily apply for cancellation of GST registration. It means it will not pay or collect GST or claim the input tax credit and need not file GST returns.
Conditions for GST Cancellation
A registered taxpayer may initiate the cancellation request on the GST portal under any of the following cases.
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The taxpayer has either shut down or discontinued his business.
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The taxpayer has transferred the business to another location.
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The business structure has changed due to merger, acquisition, sale, lease, etc.
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There is a constitutional change in the business leading to change in PAN
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The taxpayer did not commence any business within the specified time after taking voluntary GST registration.
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If a taxpayer is no longer liable for registration under the GST Act.
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The taxpayer doesn’t need to pay GST.
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In case of voluntary registration, the cancellation request can be done only after completion of one year from the GST registration date.
Registration under GST is compulsory for certain businesses. If the registration is canceled and the business is still operating, it will lead to heavy penalties.
GST Revocation of Cancellation
The registered GST taxpayer may submit an application for the revocation of the canceled registration within 30 days of the day the order of registration cancellation was served.
If the taxpayer has voluntarily canceled the GST registration, the revocation request is not accepted. Only registered taxpayers may submit an application for the cancellation of their GST registration either online or offline through submission of Form GST REG-21.
GST Revocation Application Process
The steps to apply for the revocation of the cancellation of GST registration are stated as follows:
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Log in to GST portal and go to Services > Registration > Application for Revocation of Cancellation of Registration
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Complete the necessary fields in the application form and submit the application form which is referred to as Form GST REG-21.
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The relevant authority will assess the revocation request within 30 days of the application date and issue an order for the revocation of cancellation.
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Before applying for revocation, it is necessary to file all outstanding returns and clear all interests and penalties.
