GST registration is mandatory for certain businesses. According to GST rules, businesses with turnover above ₹40 lakhs must register as a normal taxable entity. This process of registering a business under Goods & Services Tax (GST) is called GST registration.
If the organization carries on business without registering under GST, it will be an offense under GST, and heavy penalties apply. Read to know more about the GST threshold limit, process, documents required, and fees of GST registration.
Businesses above the threshold limit of ₹40 Lakhs are required to register under GST mandatorily. The turnover is ₹10 Lakhs for businesses that are present in hill states and North-Eastern states. The GST registration process is completed within 6 working days.
After completing the GST registration process, the Central Government provides a Goods and Service Tax Identification Number (GSTIN). The unique 15-digit GSTIN is used to determine whether a business is liable to pay GST.
Eligibility for GST Registration / GST Threshold Limit
Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax, etc.)
Businesses with turnover above the threshold limit of ₹40 Lakhs (₹ 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh, and Uttarakhand)
Casual taxable person / Non-Resident taxable person
Agents of a supplier & Input service distributor
Those paying tax under the reverse charge mechanism
A person who supplies via an e-commerce aggregator
Every e-commerce aggregator
Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
GST Registration Process
The procedure of GST registration is as follows:
Show Cause Notice (if deficiency)
Reply to Notice (if deficiency)
Issuance of GST certificate (GSTIN)
GST Registration Fees
The total cost of registering a business under GST with Professional Utilities is ₹749 Only!
Documents Required for GST Registration
Copy of PAN Card of the Applicant
Copy of Aadhaar Card
Incorporation Certificate or Business Registration Proof
Address Proof (Rent Agreement / Electricity Bill)
Canceled Cheque / Bank Statement
Passport size photograph
Letter of Authorization / Board Resolution for Authorized Signatory
Penalty for not registering under GST
If you do not pay tax or pay a lesser amount than what is due, the levied penalty is 10% of the due amount (in case of genuine errors). However, the minimum penalty is ₹10,000.
If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.