Why GST Registration Is the Foundation of a Legal Business in India
GST replaced a complex web of indirect taxes with a single, unified structure on 1 July 2017. For entrepreneurs, startups, MSMEs and e-commerce sellers, GST registration is both a legal requirement and a strategic business move. RegistrationMART brings 10+ years of experience to simplify your GST journey — from registration to filing and compliance.
Legal Framework of GST in India
| Governing Law | The Central Goods and Services Tax Act, 2017 (CGST) |
|---|---|
| Other Acts | SGST (State), IGST (Interstate), UTGST (Union Territory) |
| Regulatory Authority | GST Council & CBIC (Central Board of Indirect Taxes & Customs) |
| GST Portal | gst.gov.in |
| Administration | Central & State GST departments |
| Penalties | As per Sections 122, 125, 129, 132 and related provisions of the GST Act |
What is GST?
GST is a destination-based, value-added tax levied on the supply of goods and services. It is collected at every stage of the supply chain and allows Input Tax Credit (ITC) for taxes paid on purchases.
Types of GST:
- CGST – Central GST (collected by Central Govt)
- SGST – State GST (collected by State Govt)
- IGST – Integrated GST (interstate supply)
- UTGST – For Union Territories
Who Needs GST Registration?
GST registration is mandatory for the following scenarios (thresholds shown):
| Scenario | Threshold / Details |
|---|---|
| Business turnover (Goods) | Above ₹40 lakh (₹20 lakh for special category states) |
| Business turnover (Services) | Above ₹20 lakh (₹10 lakh for special category states) |
| Inter-state supply | Compulsory |
| E-commerce sellers | Compulsory |
| Casual taxable persons | Compulsory |
| Non-resident taxable person | Compulsory |
| Reverse charge mechanism (RCM) | Compulsory |
| Input Service Distributors (ISD) | Compulsory |
Voluntary registration is allowed for businesses below these limits.
Types of GST Registration
| Type | Description |
|---|---|
| Normal Taxpayer | Regular GST registration for most businesses |
| Composition Scheme | Simplified tax for small taxpayers (turnover up to ₹1.5 Cr) |
| Casual Taxable Person | Short-term registration for events, exhibitions |
| Non-resident Taxable Person (NRTP) | Foreign businesses supplying in India |
| E-commerce Seller | Required for sellers on platforms like Amazon, Flipkart |
| TDS/TCS Deductor | Government or marketplaces collecting TDS/TCS |
| Input Service Distributor (ISD) | Head office distributing credit to branches |
Documents Required for GST Registration
| Entity Type | Documents Required |
|---|---|
| Proprietorship | PAN, Aadhaar, Photo, Bank details, Business address proof |
| Partnership Firm | PAN of firm, Partnership deed, Partner’s ID & address proof, photo |
| LLP | PAN, LLP agreement, Partners’ ID/address proof, photo |
| Company (Pvt Ltd, Ltd) | PAN, COI, MOA/AOA, Director ID/address proof, DSC, Board resolution |
| HUF | PAN of HUF, Karta’s ID/address proof, HUF declaration |
| Trust/NGO | PAN, registration cert., trustee details, authorization letter |
Step-by-Step GST Registration Process on GST Portal
RegistrationMART simplifies the full process digitally. Below is the standard flow on the GST portal.
- Prepare Documents
- Ensure documents (PDF/JPEG) and mobile/email OTP access are ready
- DSC may be required for companies/LLPs
- Visit GST Portal
Go to
gst.gov.in→ Services → Registration → New Registration. Fill Part A (Legal name, PAN, mobile & email, state) and get the TRN (Temporary Reference Number). - Complete Part B with TRN
Login with TRN & complete details: business address, bank details, promoter info, HSN/SAC codes, authorised signatory. Upload documents and submit with EVC/DSC.
- ARN Generation & Verification
Application Reference Number (ARN) is generated and can be used to track status online.
- Certificate Issued
Typically processed within 7 working days. On approval GSTIN (15-digit) is allotted and GST registration certificate is generated. Display of GSTIN at business premises is mandatory.
GSTIN Format
15-digit GSTIN is composed as PAN + State Code + Entity Code + Check Digit.
Example: 24ABCDE1234F1Z5
24 = State code (Gujarat)
ABCDE1234F = PAN
1 = Entity code
Z = default
5 = Check digitGST Compliance After Registration
| Task | Frequency |
|---|---|
| GSTR-1 (Sales) | Monthly / Quarterly |
| GSTR-3B (Summary Return) | Monthly |
| GSTR-9 (Annual Return) | Yearly |
| Maintain Books of Accounts | Ongoing |
| Display GSTIN at premises | Permanent |
| Issue Tax Invoice | On each taxable sale |
Composition Scheme vs Regular GST
| Factor | Composition Scheme | Regular GST |
|---|---|---|
| Eligibility | Up to ₹1.5 crore turnover | Any turnover |
| Tax Rate | 1% for traders, 5% for restaurants | Standard GST rates |
| Return Filing | Quarterly (CMP-08) and annual (GSTR-4) | GSTR-1, GSTR-3B, etc. |
| ITC Allowed | No | Yes |
| Inter-state Supply | Not allowed | Allowed |
Ideal for: small traders, manufacturers and restaurants not selling online. Choose carefully — switching schemes has regulatory steps.
Strategic Benefits of GST Registration
Consequences of Not Registering for GST
| Violation | Penalty / Consequence |
|---|---|
| Not registering when liable | Fine up to ₹10,000 or 100% tax due |
| Late filing | ₹50 per day (₹20 if NIL) |
| Evasion / double invoicing | 100–200% of tax + possible prosecution |
| Fake invoice claims | Up to 5 years imprisonment under Section 132 |
GST for E-Commerce & Online Sellers
Online sellers must register irrespective of turnover if selling through online marketplaces or shipping across state borders. Marketplaces may also collect TCS (Tax Collected at Source) under Section 52.
FAQs
Q1: Is GST registration mandatory for freelancers or consultants?
Yes, if annual turnover exceeds ₹20 lakh (₹10 lakh for special category states). Independent professionals should check thresholds and exemptions carefully.
Q2: Can I use one GSTIN for multiple businesses?
If multiple businesses operate under the same PAN and within the same state, a single GSTIN might be used; otherwise separate GSTINs are required.
Q3: Can I amend GST details after registration?
Yes — changes to business name, address, partners, authorised signatory, etc. can be updated via amendment applications on the GST portal.
Q4: Can I cancel GST registration?
Yes. Cancellation is available when business is closed, transferred, or no longer liable. File the cancellation application on the GST portal with supporting evidence.
Q5: Penalty for voluntary registration but not filing returns?
Voluntary registrants are still required to file returns; non-compliance attracts penalties and interest for late payments.
Why Register GST with RegistrationMART?
| Our Advantage | What we provide |
|---|---|
| ✅ Legal Accuracy | GST experts & CAs handle your application |
| ⏱️ Fast Turnaround | 1–2 day document prep & filing support |
| 🛠️ End-to-End Support | Registration + Return Filing + Advisory |
| 🧾 Invoicing & Software | Digital invoice tools with GST built-in |
| 📩 Notices Handled | We manage GST officer queries on your behalf |
| 👥 MSME Focus | Plans for startups & small businesses |
Success story — D2C Brand “GlowBea”Onboarded to marketplaces in 3 days with full compliance setup via RegistrationMART.
Conclusion
GST registration is the first building block for a compliant, scalable business in India. Don’t wait for notices — be proactive. Let RegistrationMART register, manage and grow your business with expert guidance and digital tools.
Need fast help? Contact RegistrationMART or call +91-XXXXXXXXXX.
