GST Registration 2021: Basic Things You Should Know
Are you new to the GST regime?
We understand that it may be difficult to know the complete process in the first go.
But it is not that difficult to understand.
This article will walk you through the process and concepts you will come across when you start your GST Registration.
To get registered as a valid taxpayer, any person has to follow the process prescribed by the GST Council & the Government of India.
According to the Rules of Goods and Services Tax, any business whose turnover falls above Rs. 40 lakhs (Rs 10 lakhs for special category states) have to register as a normal taxable person. To enroll this taxable person under GST is defined as the GST Registration.
Who is Eligible for a GST Registration Process?
First things first, let’s see the categories of the people who are eligible to be registered under GST.
| Taxpayers from the previous tax systems. (VAT, Excise, Service Tax, etc.) |
| E-Commerce Aggregators |
| The supplier who supplies through e-commerce aggregator |
| Businesses whose turnover exceeds above the threshold limit of Rs. 40 Lakhs (Rs. 10 Lakhs for special category states) |
| Vendors & Agents of a Supplier & Input Service Distributors |
| Taxpayers falling under the Reverse Charge Mechanism system |
Now, once we know whether you are eligible for a GST Registration or not, then you can proceed further with the rest of the formalities you need to complete on the GST portal.
Threshold Limit to Register under GST (GST Registration Limit)
The Government of India & the GST Council has been taking multiple steps to ease out the experience of the taxpayers. Defining the threshold limit was an important step to apply a filter to decide which business should enroll under GST & which should not.
Without going into many details & confuse the readers, we would like to present a tabular representation of the defined limits:
For the convenience of the governance & a fair chance of development for all the states the GST Council classified the states & UTs into two classes as follows:
- Normal Category State/UT
Sale of Goods:
| State Type | Aggregate Turnover | GST Registration |
| Normal Category State | 40 Lakhs and above | Required |
| Special Category State | 20 Lakhs and above | Required |
Service Providers:
| State Type | Aggregate Turnover | GST Registration |
| Normal Category State | 20 Lakhs and above | Required |
| Special Category State | 10 Lakhs and above | Required |
Following is the list of the Special Category States under GST:
- Arunachal Pradesh
- Assam
- Manipur
- Meghalaya
- Mizoram
- Jammu & Kashmir (Now a Union Territory)
- Nagaland
- Sikkim
- Tripura
- Himachal Pradesh
- Uttarakhand
States/UT Opting-in for GST Registration New Limits
The normal Category States opting for 40 Lakh limit
| Maharashtra | Jharkhand | Delhi |
| Chhattisgarh | Bihar | Kerala |
| Andhra Pradesh | Gujarat | Punjab |
| Himachal Pradesh | Haryana | Goa |
| Madhya Pradesh | Odisha | Tamil Nadu |
| Karnataka | Rajasthan | West Bengal |
| Uttar Pradesh | Andaman and Nicobar Islands | Lakshadweep |
| Dadra and Nagar Haveli | Chandigarh | Daman and Diu |
The Special Category States/UT opting for 40 Lakh limit
- Jammu and Kashmir
- Ladakh
- Assam
The Special Category States/UT opting for 20 Lakh limit
| Uttarakhand | Arunachal Pradesh | Puducherry |
| Meghalaya | Mizoram | Tripura |
| Manipur | Sikkim | Nagaland |
GST Registration Documents
Submitting valid documents is the most crucial part of the GST Registration process. It is very important to furnish valid & legal details while applying for a GST Registration Certificate. In case of any differences found in your details in the later stage, your registration may even get cancelled.
We have classified the documents based on the business types as shown below.
Primary Documents common for all types of businesses
| Business Owner’s Documents | Business Documents |
| PAN Card | Bank Statement or Passbook of the business account |
| Aadhar Card | Business Address proof |
| Photographs | Registration Certificates, MOA or AOA |
Sole Proprietorship Business
| Business Owner’s Documents |
| PAN Card |
| Aadhar Card |
| Photographs |
| Any other Government ID Proof |
| Business Documents | |
| Bank Statement or Passbook of the business account | |
| Rent Agreement | |
| Ownership proof (electricity bill, phone bill, water bill) |
Normal Partnership Business
| Business Owner’s Documents |
| PAN Card of the Partnership |
| Bank statement copy |
| Partnership Deed |
| Letter for Appointment of Authorized signatory |
| Declaration of Compliance |
| Pan card & Identity proof of Individual Partners |
| Business Documents |
| Bank Statement or Passbook of the business account |
| Rent Agreement |
| Ownership proof (electricity bill, phone bill, water bill) |
Pvt. Ltd. Business
| Company’s Documents |
| Registration certificate of the company |
| Pan card of the company |
| Memorandum of Association (MOA) |
| Articles of Association (AOA) |
| Copy of Bank statement |
| Copy of Board resolution |
| Letter for Appointment of Authorized signatory |
| Declaration of Compliance |
| Office Documents |
| NOC of the owner |
| Rent Agreement (if required) |
| Ownership proof (electricity bill, phone bill, water bill) |
Directors’ Documents:
- PAN Card & Aadhar Card of Directors
- Other ID proofs of the directors
- Photos
Limited Liability Partnership type business
| Company’s Documents |
| Registration certificate of the LLP |
| Pan card of the LLP |
| LLP partnership agreement |
| Copy of Bank statement of the LLP |
| Copy of Board resolution |
| Letter for Appointment of Authorized signatory |
| Declaration of Compliance |
| Office Documents |
| NOC of the owner |
| Rent Agreement (if required) |
| Ownership proof (electricity bill, phone bill, water bill) |
Documents of the Partners:
- PAN Card & Aadhar Card of Directors
- Other ID proofs of the directors
- Photos
GST Registration Verification
Once you furnish all your details & submit all the required documents, you must verify your GST Registration Number.
It is also very important for a transacting party to authenticate the GSTIN number they are dealing with.
GST Portal of the Government of India provides a very simple solution to the problem of verifying the GST Identification Number (GSTIN) numbers.
It’s an easy process and will just take few minutes.
2. Ways you can verify any GSTIN:
- Search by GSTIN (GST Identification Number) or UIN (Unique Identification Number)
- Search using your PAN Card details
Verify using GSTIN or UIN
Enter the GSTIN to be verified.
Click on the ‘Search’ button.
The details of this GSTIN will be shown
Verify using PAN Card details
You can fetch the details of the validity of your supplier or vendor using their PAN Card details. This will help you to confirm that you are in business with authentic parties & this will protect you from further tax implications.
GST Registration Suspension
Regarding notification No. 94/2020- Central Tax, dated 22.12.2020, sub-rule (2A) has been introduced to rule 21A of the Central Goods and Services Tax Rules, 2017.
A Standard Operating Procedure (SOP) was released by the CBIC on 11th February 2020 for the implementation of the provision of suspension of registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017.
Before this, there was no concept called ‘Suspension of GST Registration’. As it is a newly developed measure it becomes important to understand its significance & its implications.
Whose Registrations can be suspended?
GST Registrations of those taxpayers can be suspended:
- If differences are found in comparing the details of outward supplies furnished under Form GSTR-1 and Form GSTR 3B.
- If differences found while comparing the details of inward supplies reflecting in the Form GSTR-2B with the Form GSTR-3B.
NOTE: Only the authorized tax official is given the power to suspend the GST Registration of a defaulting taxpayer. The officer should have a satisfactory reason for doing so.
The taxpayer should be given an opportunity by the GST officer, to express his side in his defense which will allow him to state reasons why his registration should not be suspended.
GST Registration Certificate Download
GST Registration Certificate is an important legal document that every business is expected to have with them. It is very important to display this certificate at your place of business.
Follow these simple steps to GST Registration certificate download.
Step 1:
Log in to the GST Portal www.gst.gov.in
Step 2:
Click on ’Services’ > ‘User Services’ > ‘View/ Download Certificate.
Step 3:
Click on the ‘Download’ icon.
The downloaded Certificate will be similar as follows:
Details in the GST Certificate
- GST Identification Number of the registered entity
- Trade Name and Legal Name
- Type of Business Constitution (Eg: Partnership, Company, Proprietorship, Trust, etc.)
- Address of the Principal Place of Business
- Date of Liability
- Period of Validity
- Type of registration
- Particulars of the Approving authority- Name, designation, Jurisdictional office, and Signature (usually digitally signed).
GST Registration- Benefits
Registering under GST will surely benefit the businesses in the long run.
Following are some of the major advantages you can enjoy under the GST regime:
- Legal identity as a GST Registered Supplier.
- Conduct interstate/intrastate business without any restrictions.
- Limited Compliance & tax liability.
- Proper & transparent accounting which in turn will benefit you in availing 100% Input Tax Credit.
- Legally authorized to collect taxes from consumers or purchasers.
- Other privileges under GST laws.
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