GST registration and returns in India

Who must register

A business generally must register for GST once its aggregate turnover in a financial year exceeds a threshold. In most states the threshold is ₹40 lakh for suppliers of goods and ₹20 lakh for service providers and mixed suppliers. Some special category states have lower limits. The limits can change and states can opt differently, so confirm yours.

Who must register whatever the turnover

Some activities need registration even below the threshold. Examples include certain inter-state supplies of goods, supplying through e-commerce operators in many cases, casual taxable persons and non-resident taxable persons. If your case is not clear, ask a professional before you assume you are exempt.

Voluntary registration

A business below the threshold can register voluntarily. That lets it claim input tax credit and sell to GST-registered buyers, but it then takes on the filing duties.

Documents usually needed

• PAN of the business or proprietor.
• Aadhaar for authentication of the person applying.
• Proof of the business address, such as a rent agreement or ownership document with a recent utility bill.
• Bank account proof.
• A photograph of the proprietor or partners.
• Constitution documents, such as the certificate of incorporation, LLP agreement or partnership deed.

The registration process

1. Apply on the GST portal. Part A verifies PAN, mobile number and email. Part B takes the business details and documents.
2. Receive an application reference number.
3. Officer verification. The officer may ask for clarifications or more documents, and sometimes a physical verification.
4. Receive the GSTIN and registration certificate.

How long it takes depends on the officer's queries. We do not quote a standard number of days.

Regular scheme or composition scheme

Most registered businesses are regular taxpayers. Eligible small businesses can opt for the composition scheme, which means paying tax at a fixed percentage of turnover and filing simpler returns. A composition taxpayer cannot collect GST from customers or claim input tax credit, and eligibility limits and restrictions apply. Check the current limits before you choose.

Returns you will file

• GSTR-1 reports your outward supplies.
• GSTR-3B is the summary return through which you pay the tax.
• The annual return summarises the year.

Regular taxpayers file monthly, and eligible small taxpayers can choose a quarterly option. Late filing attracts fees and interest, and a return with no activity still has to be filed.

What you pay

Registration on the portal carries no government fee. Professional fees depend on the number of returns, the volume of invoices and the state of your records. We quote after we understand your business.