GST Registration in India — Complete Guide (2025)
Get GSTIN, claim ITC, file returns and stay compliant — step-by-step GST registration, returns, thresholds and penalties explained by RegistrationMART.
1. What is GST?
Goods and Services Tax (GST) is a comprehensive, destination-based indirect tax on supply of goods and services across India. Launched on 1 July 2017, GST replaced multiple indirect taxes to create a unified tax regime with Input Tax Credit (ITC) across the chain.
2. Types of GST
| Type | Full Form | Levied By | Applicable On |
|---|---|---|---|
| CGST | Central GST | Central Government | Intra-state supplies |
| SGST / UTGST | State / Union Territory GST | State / UT Govt | Intra-state supplies |
| IGST | Integrated GST | Central Government | Inter-state supplies & imports |
3. Who Needs GST Registration?
GST registration is required for (non-exhaustive list):
- Businesses with aggregate turnover above threshold limits
- E-commerce operators and marketplace sellers
- Casual taxable persons and non-resident taxable persons
- Input Service Distributors (ISD) and persons liable under reverse charge
- Users wanting to claim Input Tax Credit voluntarily
4. Mandatory Threshold Limits (2025)
| Type | Goods | Services |
|---|---|---|
| Normal States | ₹40 Lakhs | ₹20 Lakhs |
| Special Category States | ₹20 Lakhs | ₹10 Lakhs |
Note: Thresholds are subject to change by law — consider voluntary registration to avoid surprises.
5. Types of GST Registration
- Regular Taxpayer: Default option for most businesses.
- Composition Scheme: For small taxpayers with simpler compliance.
- Casual Taxable Person: For temporary/seasonal businesses.
- Non-Resident Taxable Person: For foreign suppliers in India.
- E-commerce Operator: Marketplaces & aggregators.
- TDS/TCS Registrations: Government agencies & certain platforms.
6. Voluntary GST Registration — Why Consider It?
Even if below threshold, businesses may register voluntarily to:
- Claim Input Tax Credit (ITC)
- Improve credibility for B2B clients
- Enable interstate supplies and exports
- Avoid future compliance hassles if turnover is expected to grow
7. Composition Scheme — Small Business Benefit
Available for taxpayers with turnover up to ₹1.5 Crore (₹75L in some NE states). Simple quarterly returns, lower effective tax rates, but no ITC claim allowed. Typical rates:
- Traders & Manufacturers — 1%
- Restaurants (non-AC) — 5%
8. Documents Required for GST Registration
| Entity | Key Documents |
|---|---|
| Proprietorship | PAN, Aadhaar, photo, bank statement, electricity bill |
| Partnership | PAN, partnership deed, photos, Aadhaar, address proof |
| Company / LLP | PAN, Certificate of Incorporation, MOA/AOA, director IDs, board resolution |
| All | Business address proof, cancelled cheque, NOC if rented |
9. Step-by-Step Online GST Registration Process
- Visit: gst.gov.in → Register Now.
- Part A (REG-01): Enter PAN, mobile & email (OTP verification).
- Obtain TRN: Temporary Reference Number to continue.
- Part B: Complete business details, upload documents, sign and submit.
- Officer Verification: 3–7 working days; respond promptly to queries.
- Receive GSTIN & Certificate: Downloadable once approved.
10. GSTIN Format Explained
GSTIN is a 15-character alphanumeric code. Example: 24ABCDE1234F1Z5
- 1–2: State code
- 3–12: PAN of taxpayer
- 13: Entity number
- 14: Usually ‘Z’
- 15: Checksum
11. GST Certificate — What It Shows
Contains GSTIN, legal & trade names, constitution of business, address, date of liability and a QR code. Display at place of business and use for bank/credit processes.
12. GST Returns & Filing System
| Return | Purpose | Frequency |
|---|---|---|
| GSTR-1 | Outward supplies | Monthly / Quarterly (small) |
| GSTR-3B | Summary monthly payment | Monthly |
| GSTR-9 | Annual return | Yearly |
| GSTR-4 | Composition scheme | Yearly |
| GSTR-2B | Auto-drafted ITC statement | Monthly |
Note: E-invoicing mandatory above specified turnover (check current limits).
13. Input Tax Credit (ITC) — Key Points
- Claim ITC only on business-use purchases backed by valid tax invoices.
- Supplier must have filed GSTR-1 and paid the tax.
- Payment must be made within 180 days to claim ITC.
- Certain goods/services (e.g., motor vehicles) are blocked for ITC unless specific exceptions apply.
14. Late Fees & Penalties
| Offence | Penalty |
|---|---|
| Not registering when required | ₹10,000 or tax evaded (whichever higher) |
| Late return filing | ₹50/day (₹20 if NIL) |
| Incorrect ITC claim | 100% of excess claim |
| Failure to issue invoice | Up to ₹25,000 |
15. Cancellation & Revocation
GST registration can be cancelled if business discontinued or ineligible. You can also apply for voluntary cancellation. RegistrationMART assists with cancellation and revocation procedures and paperwork.
16. Benefits of Being GST Registered
- Legal compliance and avoidance of heavy penalties
- Claim Input Tax Credit to reduce costs
- Essential for B2B transactions and exports
- Improves credibility with banks, suppliers and buyers
- Enables interstate supply and e-commerce marketplaces
17. Common Mistakes to Avoid
- Choosing wrong business type or missing additional places of business
- Incorrect HSN/SAC classification
- Not responding to officer queries promptly
- Missing NIL return filings
- Using incorrect DSC or forgetting to sign forms
18. Frequently Asked Questions
- Q. Is GST mandatory for freelancers or consultants?
- Yes, if aggregate turnover exceeds ₹20 Lakhs (subject to state-specific lower limits).
- Q. Can I register GST without a commercial address?
- Yes, residential address is acceptable with NOC, but ensure documents are accurate.
- Q. What if I delay registration?
- Penalties may apply and you may lose ITC for prior purchases.
- Q. Can one PAN have multiple GSTINs?
- Yes — for multiple states or distinct business verticals/branches if applicable.
19. Why Choose RegistrationMART for GST?
- 10+ years of taxation & compliance experience
- End-to-end GST registration, return filing & ITC reconciliation
- DSC, PAN–Aadhaar linkage & multi-state GST support
- GST audit, notices & litigation support
- Affordable plans and ongoing advisory
20. Conclusion — GST is Not Just Tax, It’s Trust
GST registration is a foundational step for any modern Indian business. Beyond compliance, it unlocks Input Tax Credit, improves credibility and enables growth across states and marketplaces. At RegistrationMART we make GST simple — accurate filings, timely returns and expert advice so you can focus on growing your business.
