GST Registration

1. Meaning:

Goods and Services Tax (GST) registration is the process by which a business or individual becomes registered under the Goods and Services Tax Act, 2017. Once registered, the entity is recognized as a supplier of goods or services and is legally required to collect and pay GST to the government.

2. Legal Framework:

GST registration is governed by Chapter VI of the CGST Act, 2017 and the CGST Rules, 2017 (Rules 8–26).

3. Who Should Register:

GST registration is mandatory for:

Businesses with an aggregate annual turnover exceeding:

  ₹40 lakhs (for goods)

  ₹20 lakhs (for services)

  ₹10 lakhs (for Special Category States)

  Persons making inter-state taxable supplies

  Casual taxable persons and non-resident taxable persons

  Persons required to pay tax under reverse charge

  Agents of a supplier

  Input Service Distributors (ISD)

  E-commerce operators and suppliers via e-commerce portals

4. Voluntary Registration:

Businesses with turnover below the threshold limit may also opt for voluntary registration to avail input tax credit and enhance credibility.

5. Procedure for Registration:

  Application to be filed online through the GST portal (www.gst.gov.in) using Form GST REG-01.

  The applicant must furnish details of business, PAN, Aadhaar, address proof, and bank account.

  After verification, the department issues a GSTIN (Goods and Services Tax Identification Number) and Certificate of Registration in Form GST REG-06.

6. GSTIN (Goods and Services Tax Identification Number):

  A 15-digit unique identification number issued to every registered taxpayer.

  Format:

  First 2 digits – State Code

  Next 10 digits – PAN of the applicant

  13th digit – Entity code

  14th digit – Default “Z”

  15th digit – Check code

7. Benefits of Registration:

  Legally authorized to collect tax.

  Eligible to claim Input Tax Credit (ITC).

  Facilitates interstate business without restrictions.

  Enhances business credibility and compliance.

8. Cancellation of Registration:

Registration may be cancelled if the business:

  Ceases operations

  Fails to file returns continuously

  Obtains registration fraudulently

The taxpayer or the department can initiate cancellation through the GST portal.

9. Penalty for Non-Registration:

Failure to register when required attracts a penalty of 10% of the tax due or ₹10,000, whichever is higher. In Summary:

GST registration ensures tax compliance, transparency, and smooth credit flow within the GST framework. It is an essential step for every eligible business entity operating in India under the indirect tax regime.