GST Registration in India: Step-by-Step Process, Fees & Required Documents

 

Introduction: Why GST Registration Matters Today

Starting or running a business in India today is almost impossible without understanding GST registration. Whether you are a small trader, freelancer, online seller, startup founder, or service provider, GST registration directly impacts your legality, credibility, and growth potential.

Many people delay or avoid GST registration due to confusion, fear of compliance, or misinformation. Others register incorrectly and later face penalties, notices, or blocked input tax credit. With GST rules evolving and digital tracking increasing, getting GST registration right from the beginning has never been more important.

This guide explains GST registration in India step by step, including fees, documents, eligibility, mistakes to avoid, and expert insights—in clear, simple language.

 

Official Background: What Is GST Registration?

GST (Goods and Services Tax) is a unified indirect tax introduced in India on 1 July 2017. It replaced multiple indirect taxes such as VAT, Service Tax, and Excise Duty.

GST registration is the process by which a business obtains a GSTIN (Goods and Services Tax Identification Number), allowing it to:

• Collect GST from customers
• Claim Input Tax Credit (ITC)
• File GST returns
• Operate legally under GST law

GST registration is governed by the Central Goods and Services Tax Act, 2017, along with State GST Acts.

 

What Is GST Registration?

GST registration is official recognition by the tax department that a person or business is liable to pay GST.

Once registered:

• You become a taxable person
• You must charge GST on taxable supplies
• You must file periodic GST returns
• You can claim credit for GST paid on purchases

You receive a 15-digit GSTIN, which acts as your tax identity across India.

 

Why GST Registration Exists

GST registration exists to:

1. Ensure tax compliance
2. Create transparency in indirect taxation
3. Prevent tax evasion
4. Enable input tax credit flow
5. Standardize business taxation across states

Without registration, GST collection and credit matching would be impossible.

 

Who Needs GST Registration in India?

Mandatory GST Registration

You must register under GST if:

• Annual turnover exceeds:
• ₹40 lakh (goods, normal states)
• ₹20 lakh (services, normal states)
• ₹20 lakh / ₹10 lakh (special category states)
• You make inter-state supply
• You sell through e-commerce platforms (Amazon, Flipkart, Meesho, etc.)
• You are a casual taxable person
• You are a non-resident taxable person
• You are required to pay tax under reverse charge
• You are an agent or distributor
• You provide online information or database services

 

Voluntary GST Registration

Even if not mandatory, businesses may opt for voluntary registration to:

• Claim input tax credit
• Improve business credibility
• Deal with GST-registered clients
• Expand across states

 

Types of GST Registration

Understanding the type is crucial before applying:

1. Regular GST Registration
2. Composition Scheme Registration
3. Casual Taxable Person
4. Non-Resident Taxable Person
5. Input Service Distributor (ISD)
6. TDS / TCS Registration

Choosing the wrong type can cause compliance issues later.

 

GST Registration Threshold Limits

Category	Threshold
Goods (Normal States)	₹40 lakh
Services (Normal States)	₹20 lakh
Special Category States	₹10–20 lakh
Inter-state supply	No threshold
E-commerce sellers	Mandatory

Important: Threshold limits do not apply to certain notified categories.

 

Documents Required for GST Registration

For Individuals / Proprietorship

• PAN card
• Aadhaar card
• Passport-size photograph
• Bank account details
• Address proof (electricity bill / rent agreement)

 

For Partnership Firm / LLP

• PAN of firm
• Partnership deed / LLP agreement
• PAN & Aadhaar of partners
• Address proof
• Bank account proof

 

For Company

• Certificate of Incorporation
• PAN of company
• MOA & AOA
• PAN & Aadhaar of directors
• Address proof
• Bank details

 

Additional Documents

• Authorization letter
• Digital Signature (for companies/LLPs)

 

Step-by-Step GST Registration Process

Step 1: Access GST Portal

Visit the official GST portal and select New Registration.

 

Step 2: Fill Part A

• Select “Taxpayer”
• Enter PAN
• Mobile number & email (OTP verification)

 

Step 3: Temporary Reference Number (TRN)

After OTP verification, you receive a TRN to continue registration.

 

Step 4: Fill Part B

Provide:

• Business details
• Promoter details
• Address
• Bank details
• Business activity

 

Step 5: Upload Documents

Upload required documents as per business type.

 

Step 6: Verification

• Aadhaar authentication OR
• Physical verification (if required)

 

Step 7: ARN Generation

An Application Reference Number (ARN) is generated.

 

Step 8: GSTIN Issued

If approved, GSTIN is issued within 3–7 working days.

 

GST Registration Fees in India

Government Fees

✅ ₹0 (Free)
The government does not charge any registration fee.

 

Professional Fees

Service Type	Typical Fee Range
Proprietorship	₹500 – ₹2,000
Partnership / LLP	₹2,000 – ₹5,000
Company	₹3,000 – ₹7,000

Fees vary based on complexity and documentation.

 

Practical Examples

Example 1: Freelancer

A digital marketer earning ₹25 lakh annually from Indian clients must register under GST.

 

Example 2: Online Seller

A small seller earning ₹5 lakh via Amazon must register due to e-commerce mandate.

 

Example 3: Local Trader

A trader selling goods within the state with turnover ₹30 lakh does not require GST (if no inter-state supply).

 

Common Mistakes to Avoid

• Wrong business category selection
• Incorrect address proof
• Choosing wrong GST type
• Ignoring Aadhaar authentication
• Registering without understanding compliance

 

Consequences of Not Registering

• Heavy penalties
• Interest on unpaid tax
• Input tax credit loss
• Legal notices
• Business disruption

Penalty can be 10% of tax due or ₹10,000, whichever is higher.

 

Why GST Registration Matters Now 

• Increased digital monitoring
• E-invoicing expansion
• Data sharing between departments
• Bank & payment gateway compliance
• Startup & MSME funding requirements

GST registration is now a business necessity, not just a tax formality.

 

Expert Insights

Many small businesses register late or incorrectly, assuming GST applies only to large companies. In reality, non-compliance hurts growth more than tax liability.

Early, correct registration:

• Builds trust
• Prevents future penalties
• Enables smoother scaling

GST should be seen as a compliance foundation, not a burden.

 

What Taxpayers Should Do Now

• Check eligibility carefully
• Gather correct documents
• Choose correct registration type
• Understand post-registration obligations
• Maintain proper records

Education before registration saves time, money, and stress.

 

Frequently Asked Questions (FAQs)

1. Is GST registration mandatory for small businesses?

Only if turnover or specific conditions apply.

2. Can I cancel GST later?

Yes, if business closes or turnover falls below threshold.

3. Is GST registration permanent?

It remains valid unless cancelled or surrendered.

4. Can I register without PAN?

No, PAN is mandatory.

5. Is Aadhaar mandatory?

Aadhaar authentication is strongly recommended.

6. How long does approval take?

Usually 3–7 working days.

 

Internal Link Suggestions

• Understanding GST Returns Filing
• Composition Scheme Explained
• Input Tax Credit under GST

 

Conclusion

GST registration is not just a legal requirement—it is a gateway to compliant, scalable, and credible business operations. Understanding the process, eligibility, and implications empowers taxpayers to make informed decisions.

When done correctly, GST registration becomes a business enabler rather than a compliance burden.

 

Author Box

Written by Manoj Kumar
Tax & Accounting Expert with 11+ years of experience in Income Tax, GST, Accounting, Compliance, and Tax Education.
Founder & Educator at Manika TaxWise, dedicated to simplifying finance and taxation for Indian taxpayers and professionals.

 

Editorial Disclaimer

Disclaimer:
This article is for educational and informational purposes only. It does not constitute legal, tax, or financial advice. Readers are advised to consult a qualified professional before making decisions based on this content.