What is GST Registration?

GST registration refers to the process by which a business obtains a unique identification number, called a GSTIN (Goods and Services Tax Identification Number), making it liable to pay Goods and Services Tax (GST) in India. According to the Central Goods and Services Tax Act, 2017, businesses with an annual turnover exceeding ₹40 lakh (or ₹20 lakh in some special category states) are required to register as taxable entities. The 15-digit GSTIN uniquely identifies each taxpayer under the GST framework and helps authorities track transactions and related data effectively.

GST, or Goods and Services Tax, is a destination-based, multi-stage, indirect tax that replaces other taxes, including VAT and excise duties. Businesses that previously fell under service tax, excise, or VAT must now register for GST. Additionally, eCommerce sellers are mandatorily required to register, regardless of their turnover.

With Sperso Filings, you can apply for GST registration online through the official portal, allowing you to complete the process without visiting government offices. This convenient and smooth process helps businesses efficiently meet their compliance obligations. Once you submit your application, the portal generates an ARN (Application Reference Number) immediately, enabling you to track your registration’s progress in real time.

GST Act

The Central Goods and Services Tax Act of 2017 was enacted to simplify the tax structure and reduce tax evasion, providing a framework for levying the Goods and Services Tax (GST) on both intra-state and inter-state supplies of goods and services in India.

Who Should Apply for GST Registration?

GST registration is essential for certain businesses and individuals to remain compliant with the law. Here’s who needs to apply:

• Service Providers: Those offering services with a turnover exceeding ₹20 lakhs (₹10 lakhs in special category states) must register for GST, including freelancers, consultants, and agencies.
• Previously Registered Entities: Businesses previously registered under VAT, Service Tax, or other indirect taxes should transition to GST registration.
• E-commerce Providers: Sellers or platforms offering goods or services online, through sites like Amazon or Flipkart, need to register regardless of their turnover.
• Inter-State Suppliers: Businesses that supply goods or services across state borders must register for GST, whatever their turnover.
• Casual Taxable Persons: Entities that occasionally provide goods or services in a taxable area without a permanent place of business must register under GST.
• Agents of Suppliers: Agents acting on behalf of suppliers or delivering goods or services for them are liable for registration.
• Input Service Distributors (ISD): Businesses that distribute input tax credit to their branches must be registered as ISD.
• Non-Resident Taxable Persons: Foreign entities or individuals supplying goods or services in India need to register as non-resident taxable persons.
• Reverse Charge Mechanism (RCM) Entities: Businesses liable to pay GST under reverse charge — where the recipient, instead of the supplier, bears the tax — must register.
• Specialized Categories: Entities such as TDS deductors, TCS collectors, and Online Information and Database Access Retrieval (OIDAR) service providers are also required to register for GST.

GST Registration Threshold Limits

Eligibility for online GST registration must be checked before proceeding. Businesses previously registered under the Pre-GST legislation should also apply for online registration. It’s mandatory for companies with a turnover exceeding ₹40 lakhs for the sale of goods in normal category states and ₹20 lakhs in special category states. A business must register as a regular taxable entity under GST if its annual threshold crosses ₹40 lakhs. The GST Council sets the applicable GST rates, exemption criteria, and other related policies. Below is a complete overview of these details.

Aggregate Turnover, Registration Criteria, and Applicability

Earlier, businesses with an aggregate turnover exceeding ₹20 lakhs were liable to register under GST in normal category states, while for special category states, the threshold was set at ₹10 lakhs — up until 31 March 2019.

From 1 April 2019 onwards, the registration threshold for the sale of goods was raised to ₹40 lakhs for normal category states and ₹20 lakhs for special category states. Meanwhile, for the delivery of services, the threshold remained at ₹40 lakhs for normal category states and ₹20 lakhs for special category states up to 31 March 2019. After 1 April 2019, service providers with an annual turnover exceeding ₹20 lakhs in both normal and special category states are liable to register under GST with Sperso Filings.

Applicability: These thresholds apply to businesses and service providers engaged in the sale of goods or delivery of services within their respective states, whether normal or special. This includes companies, firms, entrepreneurs, and other entities that carry out a taxable supply and are not otherwise exempt from registration under the GST regulations.

Note: Key GST Updates After Budget 2025

The Union Budget 2025 brings significant updates to the GST framework, including modifications to Input Service Distributor (ISD) regulations, compulsory registration for certain machinery, and a simplified process for GST registration. Businesses are required to align with these updated GST rates and new reverse charge mechanisms. Our team of experts at Sperso Filings is here to guide you through these changes and help you achieve complete regulatory compliance with ease.

Turnover Limits for GST Registration

GST registration is optional and can be voluntarily obtained by any person or entity, regardless of their turnover. However, it becomes mandatory when the aggregate turnover crosses ₹20 lakhs for service providers or ₹40 lakhs for suppliers of goods in most states. For special category states, this threshold drops to ₹10 lakhs. Aggregate turnover includes all taxable, exempt, export, and inter-state supplies, and is calculated on a PAN-India basis. Businesses that are liable to register can apply for their GST registration online through the official portal for a quick and convenient process. Here’s a brief overview of the registration thresholds based on sectors and states:

• For the manufacturing sector, the threshold is ₹40 lakhs or greater; for the service sector, it’s ₹20 lakhs or higher; and for special category states, it stands at ₹10 lakhs or greater.
• Special category states include Assam, Arunachal Pradesh, Manipur, Jammu & Kashmir, Meghalaya, Nagaland, Mizoram, Sikkim, Tripura, and Uttarakhand.
• Additionally, all employees earning below this wage limit must be registered under the ESI scheme, which offers health care and social security benefits for both employees and their families.
• Furthermore, any factory or establishment employing 10 or more workers is liable to register under ESIC and make contributions toward their welfare.

Mandatory GST Registration for Specific Businesses

Irrespective of the threshold limit GST registration is mandatory for the following:

• Individuals engaged in inter-state taxable supply (with a threshold of ₹20 lakhs or ₹10 lakhs for inter-state delivery of services, specified handicrafts, and handmade products)
• Casual taxable persons involved in taxable transactions
• Persons liable to pay tax under reverse charge for inward supplies
• Non-resident taxable persons engaged in taxable activity
• E-commerce entities (including all e-commerce platforms and individuals supplying goods or services through them)
• Entities required to deduct tax under Section 51
• Input service distributors
• Persons making taxable supplies of goods or services on behalf of another, whether as an agent or otherwise
• Those liable to pay tax under Section 9(5)
• Any other individuals or categories specified by the government

Advantages of Registering for GST

Registration under GST is a key step toward a unified indirect tax framework in India. It brings numerous benefits to businesses that choose to register. A taxpayer who obtains registration under the GST Act of 2017 can enjoy the following advantages:

• Valid Legal Recognition
  Obtaining GST registration helps a business gain legal recognition as a supplier of goods or services, validating its credibility as a lawful entity.
• Input Tax Credit Benefit (ITC)
  Businesses that are registered can reduce their overall tax payments by claiming Input Tax Credit (ITC) for the taxes they pay on their purchases. This directly brings down their eventual tax liability.
• Simplified Process
  The GST framework reduces complexity and saves time by offering a simplified process for filing taxes and making payments. Through a convenient online platform, businesses can manage their compliance more efficiently.
• Composition Scheme
  Small enterprises may choose to pay taxes under the Composition Scheme, which applies a lower, fixed rate of tax. This lessens financial pressures and eases their compliance responsibilities.
• Higher Threshold for Online GST Registration
  With a raised registration threshold, only businesses with an annual turnover above ₹40 lakhs need to mandatorily register under GST — freeing many small enterprises from additional compliance.
• Eliminates the Cascading Effect of Taxes
  GST prevents the cascading effects of taxes by allowing the claim of input credit across the supply chain. This results in a reduced overall tax burden for both businesses and their customers.

Categories of GST Registration

The Goods and Services Tax (GST) framework in India is designed with four main categories of registration to make taxation more efficient and systematic. Each of these covers different aspects of intrastate and interstate transactions. The following are the key categories under the GST structure:

• Central Goods and Services Tax (CGST)
  CGST applies to the delivery of goods and services within a single state or Union Territory.
• State Goods and Services Tax (SGST)
  SGST is levied on the sale of products or services that take place within state borders.
• Integrated Goods and Services Tax (IGST)
  IGST is applicable when transactions involves the movement of goods or services across state lines.
• Union Territory Goods and Services Tax (UTGST)
  UTGST applies to the delivery of products or services in Union Territories, including Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh.
  UTGST is charged alongside CGST in these jurisdictions.

Voluntary GST Registration for Businesses

Businesses with a turnover of less than ₹20 lakhs can voluntarily apply for GST registration online. This step brings several benefits, including the ability to claim input tax credit, carry out unrestricted sales across state borders, become eligible to sell on e-commerce platforms, and gain a competitive advantage over non-GST-registered firms. While registration isn’t compulsory in these cases, it paves the way for greater growth and potential profits.

Documents Needed for GST Registration

Listing all the necessary documents for GST registration based on the type of entity helps streamline the process and avoid any potential delays. Providing complete and accurate documents ensures a faster and smoother registration experience.

Sole Proprietorship / Individual

• PAN card of the proprietor
• Aadhaar card
• Bank account details (copy of cancelled cheque or passbook)
• Address proof (electricity bill or rental agreement)

LLP and Partnership Firms

• PAN card of the LLP or partnership
• Partnership agreement
• PAN and Aadhaar cards of all partners
• Bank account information
• Proof of business address

HUF (Hindu Undivided Family)

• PAN card of the HUF
• PAN and Aadhaar cards of the Karta
• Bank account details
• Proof of principal place of business

Company (Public or Private)

• PAN card of the company
• Certificate of incorporation
• PAN and Aadhaar cards of the company’s Directors
• Bank account information
• Proof of business address
• Authorization letter or board resolution approving the registration

Foreign Companies

• Certificate of registration from the respective country’s authority
• Taxpayer identification number
• Passport of the authorized representative
• Bank account in India
• Proof of business address in India

GST Registration Fees

Below are the details of GST registration fees:

Most Regular Businesses

Registration Fee: ₹0 (No Fee)
Additional Requirement: None

Casual Taxable Persons

Registration Fee: ₹0
Additional Requirement: Security deposit ranging from ₹500–₹10,000, depending on the business type and state regulations

Non-Resident Taxable Persons

Registration Fee: ₹0
Additional Requirement: Security deposit of ₹500–₹10,000, which is mandatory for temporary or foreign business setups

Step-by-Step Guide for GST Registration

Here are 4 steps to complete your online GST registration process:

Step 1 — Connect with Our Team of Experts

Book a consultation with our team of GST experts and get your doubts addressed.

Step 2 — Share Your Business Information

Provide the necessary documents and important business details to kickstart your registration.
This includes your business name, SEZ unit (if applicable), principal place of business, additional locations, phone number, email, state, and PAN card details.
Making sure all information is accurate helps avoid delays in your application.

Step 3 — File Your Application for GST Registration

Our team will aid you in filing your GST registration application online on the official portal.
Once the application is successfully submitted, you’ll receive an OTP for further verification.

Step 4 — Obtain Your GSTIN

After verifying your application, our team will provide you with your Application Reference Number (ARN) — a temporary number you can use to track your application’s progress.
The GST registration certificate will be made available on the official portal once everything is processed.

What Is Form GST REG-01?

Form GST REG-01 is the application form used to apply for Goods and Services Tax (GST) registration. Anyone who wishes to register under GST must submit this form. It’s also used by taxpayers who are new to GST registration in order to claim their input tax credit (ITC). This form needs to be filed to enable the claim of ITC on relevant stocks.
Application for Registration
(See Rule 8(1)) — Application for Registration (Other than for a non-resident taxable person, a person liable to deduct tax at source under Section 51, a person collecting tax at source under Section 52, or a person engaged in online supplies) must be made through this form.

GSTIN and Its Significance

A GSTIN is a 15-digit code that serves as a unique identifier for registered taxpayers (such as dealers, suppliers, or businesses across India) under the GST framework. GSTIN stands for Goods and Services Tax Identification Number. It helps bring greater transparency to the GST system, assists in collecting all related data from vendors, and prevents tax evasion. Holding a GSTIN offers numerous benefits for small enterprises, including access to government assistance programs, the ability to claim input tax credit on their purchases, and enhanced credibility with suppliers and customers.
Once you successfully submit your application through the GST apply online portal, you’ll be issued a GSTIN. This number plays a key role in accessing financial aid, filing for refunds, simplifying verification processes, making corrections, and understanding your business’s GST identification number.

Getting to Grips with Your GST Identification Number

A GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit alphanumeric code assigned to businesses that are registered under the GST framework in India.

Let's break down its structure:

First two digits (State Code): 22 — Highlights the state where the business is registered
Next ten-digit PAN: ABCDE1234F — PAN (Permanent Account Number) of the business
Next one digit (Entity Code): 1 — Shows the entity number for the PAN holder
One blank character: Z — Currently kept vacant for future use
Last one digit (Verification Code): 5 — Used as a check code to validate authenticity

GST Compliance Rating

The GST compliance rating is a score assigned by the government to a business based on factors such as filing its monthly and annual returns on time, submitting details of input credit used, and payments made. This compliance rating reflects to customers and other companies how much a business is adhering to regulations. Businesses with higher compliance scores are more likely to receive Input Tax Credit (ITC) and refunds faster. The GST department typically processes ITC claims and refund requests from high-rated businesses on a priority basis, ensuring quicker disbursement of funds.

GST Certificate

A GST certificate is a legal document provided to businesses registered under the Goods and Services Tax (GST) framework. It serves as confirmation of GST registration and includes key details such as the GSTIN (Goods and Services Tax Identification Number), legal name, trade name (if applicable), registration type, principal place of business, and any additional locations of business.
This certificate helps assure compliance with GST regulations, allowing businesses to operate legally while strengthening their credibility in the market. It’s compulsory for businesses exceeding the specified turnover limit or involved in interstate supply of goods or services.

Importance of GST Certificate:

Acts as legal authorization to collect GST.
Allows the claim of input tax credit.
Boosts credibility and reputation in the market.
Needed for government tenders and contracts.

Penalties for Non-Compliance

It’s essential to be aware that while there’s no fee for GST registration, penalties for non-compliance can be substantial. Here’s a breakdown of penalties for failing to follow GST regulations:

Filing GST returns after the deadline may incur a late filing penalty.
Interest is payable on any outstanding tax amount when payments are delayed.
Non-compliance with regulations may result in suspension or cancellation of your GST registration.
If a taxpayer fails to pay or underpays their dues, a penalty of 10% of the amount due applies, with a minimum of ₹10,000.
The maximum penalty for non-compliance is 10% of the total tax due; additional penalties may be applicable in certain cases.
The taxpayer may also be liable for interest payments on any overdue taxes.

Consequences of Not Registering for GST

Here’s what can happen if you neglect to register for GST when you’re liable to do so:
Any liable person who fails to register under the act may face a penalty of ₹10,000 or the amount of the evaded or outstanding tax — whichever is greater — as per Section 122 of the CGST Act.
The penalties for non-registration can reach up to ₹2 lakhs or a minimum of ₹10,000.
An amount of up to ₹2 lakhs may be payable if a person fails to complete their registration in a timely manner.

GST Registration Advantages for Businesses

Online GST registration brings numerous benefits to businesses, helping them grow while complying with regulations:

Registered businesses can claim Input Tax Credit (ITC), reducing their overall tax payments.
The simplified filing process and payments save both time and paperwork.
An exemption threshold helps small businesses avoid additional financial pressures until their turnover crosses a specified limit.
GST registration strengthens credibility, opening up a larger market and adding a competitive edge.
It streamlines operations, offers legal protection, and eases the process for securing refunds, contributing to greater financial stability and business growth.

Common Mistakes to Avoid During GST Registration

Incorrect or Incomplete Documentation — Failure to keep proper records, whether related to invoices, bills of supply, or purchase details, can cause problems during filing.
Invoice Detail Errors — Providing an invalid Goods and Services Tax Identification Number (GSTIN), erroneous invoice numbers, or flawed tax calculations may result in penalties and compliance issues.
Discrepancies Between GSTR-2A and GSTR-3B — Not reconciling your GSTR-2A with GSTR-3B can create inconsistencies and complications in compliance.
Late Filing of GST Returns — Submitting your GST returns after the deadline can lead to penalties, making it crucial to keep track of due dates and file on time.
Unverified Supplier’s GSTIN — Failure to validate your suppliers’ GSTIN through the official portal may result in the rejection of input tax credit.
Misunderstanding the GST Composition Scheme — A poor understanding of the composition scheme’s regulations can produce inaccuracies in filing.
Ignoring GST Notices and Compliance Requirements — Disregarding notices or compliance instructions can result in legal complications and heavy penalties — addressing them promptly is key.

Different Categories That Require GST Registration

• Education and Training Services
• Healthcare and Wellness
• Electricity, Water, and Local Utilities
• Financial Services and Taxation
• Employment and Job-related Services
• Justice, Legal Support, and Grievances
• Travel, Hospitality, and Tourism
• Business and Self-Employment Activities
• Registration of Births, Deaths, Marriages, and Child Care Services
• Pensions and Benefit Payments
• Transportation and Infrastructure Services
• Citizenship, Visa, and Passport Services
• Agriculture, Rural Development, and Environment
• Technology, IT, and Communication Services
• Youth, Sports, and Cultural Activities
• Essential Government Services During a Pandemic
• Arts and Cultural Sector
• General Communication Services
• Defense and Security Operations
• Home Affairs and Law Enforcement Services

Get Your GST Registration Online with Speedy Approval with Sperso Filings

• Reach Out to Our Team: Contact Sperso Filings by sharing your name, phone number, and email to kickstart the process.
• Expert Consultation: Our GST expert will connect with you to learn about your business operations, state of registration, and clarify any doubts you may have.
• Submit Required Documents: Provide and validate the necessary documents to enable a smooth registration process.
• Application Submission: Once you complete the payment, we’ll process your application and submit it directly to the GST Portal.
• Receive Your GSTIN: Obtain your GST registration within 2–6 business days — without needing any physical visits.
• Access Kitaab Platform: Begin using Kitaab for convenient GST invoicing and filing your returns.

GST Return Filing

• GST return filing is a mandatory process where taxpayers submit details of their sales, purchases, and tax dues to the government.
• Every GST-registered taxpayer is required to file their returns regularly, even if there’s no activity during a particular period.
• While GST registration is free, filing accurate and on-time returns is crucial to avoid penalties.
• Our team of experts at Sperso Filings is here to guide you through the process and make sure everything is compliant and smooth.