Thinking about starting a business in India? One of the first things you’ll hear about is GST registration. If you’re unsure whether you need it, how to apply, or what happens if you ignore it, you’re in the right place. This guide breaks down the basics, walks you through the process, and points out the biggest mistakes to avoid.
In simple terms, any business whose annual turnover crosses the threshold set by the government must register. For most service providers, that limit is ₹20 lakhs, while for manufacturers and traders it’s ₹40 lakhs. Even if you’re under the limit, you might still want to register if you deal with interstate sales, export goods, or want to claim input tax credits.
Foreign companies and NRIs are not left out. If you have a permanent establishment in India or make taxable supplies, the law expects you to get a GSTIN. The same goes for e‑commerce platforms that facilitate sales on your behalf.
1. Gather your documents. You’ll need a PAN card, Aadhaar (or a passport for foreigners), business address proof, and bank account details. If you’re a partnership, include the partnership deed.
2. Visit the GST portal. Create a user ID, fill out the application form (GST REG‑01), and upload the scanned copies of your documents.
3. Verification. The tax officer may ask for a face‑to‑face verification or a video call. Once approved, you’ll receive a GSTIN and a temporary certificate.
4. Start invoicing. Your invoices must show the GSTIN, tax rates, and the amount of GST collected. This is where the GST bill comes into play.
If you mess up a step, the portal will tell you what’s missing. Don’t ignore those prompts – fixing them early saves a lot of headaches later.
Skipping GST registration isn’t a harmless shortcut. The tax department can levy hefty penalties – up to 10% of the tax due, plus interest. Worse, you’ll lose the ability to claim input tax credits, which can increase your cost of goods dramatically.
Unregistered businesses also risk losing contracts with larger firms that require GST compliance from their partners. In severe cases, the authorities may seize assets or even shut down operations.
Do I need GST if I sell only within my state? Yes, if your turnover exceeds the state‑specific threshold. Even small intra‑state sales can attract GST if you cross the limit.
Can a startup delay registration? You can apply within 30 days of making your first taxable supply. Delaying beyond that invites penalties.
Is GST registration free? The filing process on the portal is free, but you might pay for professional help if you’re not comfortable doing it yourself.
GST registration is a mandatory step for most Indian businesses and a smart move for many that stay under the threshold. It opens doors to input tax credits, smoother interstate trade, and better credibility. Follow the simple steps above, keep your documents ready, and you’ll be compliant in no time. Got more questions? Dive into our related articles on GST penalties, foreigner GST rules, and how to issue GST‑free invoices for special cases.
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