You need to sign up for GST if you sell goods within the same state and your annual turnover is more than Rs. 20 lakh. The same goes for service providers within the same state who have annual turnovers of Rs. 40 lakh. Also, suppliers within the same state must sign up for GST.
You must register for GST in each state where you supply goods if you are a supplier of goods to more than one state. There is no fee required to be paid for GST registration. A fine of Rs.10,000 or 10% of the due amount will be levied if you fail to pay the GST.
So, why bother with GST registration? Well, if your business is legit and you want to stay on the right side of the law, it’s a must. Besides, it helps in avoiding legal hassles, claiming input tax credits, and enhancing your business credibility. Plus, your customers and suppliers are likely to take you more seriously.
Now, let’s talk about who actually needs to get registered. If your business's annual turnover exceeds ₹40 lakhs (₹20 lakhs for some special category states), you're required to register under GST. This also applies to specific businesses like e-commerce operators, agents of suppliers, and input service distributors.
GST registration isn’t a one-size-fits-all process. There are different types based on the nature and size of your business. You’ve got normal taxpayers, composition scheme taxpayers, casual taxable persons, non-resident taxable persons, and more. Each has its own set of rules and benefits.
Even if your turnover doesn’t hit the mandatory threshold, you might still want to register voluntarily. Why? Voluntary registration can make your business appear more trustworthy and enable you to avail of input tax credits. It's a smart move for businesses aiming to grow and build a solid reputation.
Ready to register? Hold up! You’ll need a bunch of documents first. Common ones include your PAN card, proof of business registration or incorporation certificate, identity and address proof of promoters, business address proof, and bank account statements. Make sure you’ve got everything lined up.
Let’s walk through the actual registration process. It can be done both online and offline, but online is way more convenient.
If you prefer going the offline route, you can download the registration form from the GST portal, fill it out, and submit it at your nearest GST Seva Kendra along with the required documents. It’s a bit old-school but still gets the job done.
Different types of entities have slightly different requirements and processes for GST registration. Let’s break it down.
For individuals or sole proprietors, it’s pretty straightforward. You’ll need your PAN, proof of identity (like Aadhaar card), business address proof, and bank details. It’s usually the quickest and simplest process.
For partnership firms and LLPs, you’ll need the partnership deed, PAN of the firm, address proof, identity and address proof of partners, and bank details. Each partner’s details are important here.
Companies have a bit more paperwork. You’ll need the certificate of incorporation, PAN, MOA and AOA (Memorandum and Articles of Association), resolution from board members, identity and address proof of directors, and the company's bank details.
Trusts and societies need their registration certificate, PAN of the trust or society, identity and address proof of trustees, and bank details. It’s a tad more complex but manageable.