• Sell goods & services anywhere in India.
• Selling goods online through e-commerce platforms such as Amazon, Flipkart, Paytm Mall. However, selling on the Facebook market place has no compulsory requirement for GST registration.
• Can have business with corporate customers
• Can do business with government agencies
• Can apply for government projects
• Can apply for tenders/bids
• Can increase trust between the customers since you issue valid tax invoice & your registration is approved or certified by the government
• Can be stronger than unregistered business since you are recognized as an authentic registered business in your society.
• Can take credit of GST paid on purchases (Input Tax Credit). However, an unregistered business should bear that cost.
• Can get loans from banks & financial institutions. The GST registration certificate acts as valid proof of your business to increase the chances of getting loan.

It is important to know about the basic understanding of GST before insights of GST registration. Goods & Service Tax (GST) is an indirect tax on the supply of goods & services. In simple terms, an indirect tax can be referred to as the ultimate tax burden is on the end customer. GST ensures uniformity in the indirect tax structure replacing the Pre-GST regime taxes such as state levy of sales tax/ VAT, entry tax, purchase tax, etc and central levy of central excise duty, additional excise duty, service tax, CST, countervailing duty.

The taxes paid to the central government (Central Excise, CST, Service Tax) cannot be taken as a credit for taxes payable to the state government (VAT). Now in GST regime, has overcome the limitation by availing credit of IGST paid (Central) for CGST & SGST payable (State).

Hence GST ensures continious chain of credits & thereby reduces the overall cost to the end customer.

1. As discussed above, GST is a mix of state tax (VAT) & central tax (Excise, Service Tax) in the context of Pre-GST regime.
2. GST registration limits – 40 Lakhs/ 20 Lakhs/ 10 Lakhs as the case may be.
3. E-way bill registration
4. Issue or collect – Tax invoice/ Delivery Challan according to GST rules
5. Input Tax Credit – GST paid for your purchases can be taken as credit while calculating net GST payable to the government [Tax on Sale (-) Tax already paid on purchases].
6. Documents/ Records required to be maintained under GST laws.
7. GST returns – Monthly/ Quarterly/ Annually
8. Opting Schemes under GST – which is most beneficial according to pattern how businesses operate.

Above all are discussed in detail in later sections.

Generally, requirement for GST Registration can be classified into

1. Mandatory GST Registration
2. Voluntarily GST Registration

Apply for GST number, when sales or turnover crosses specified limits such as

1. 40 Lakhs – Exclusively engaged in the supply of goods i.e selling only goods but not services
2. 20 Lakhs – Supplying Services (or) Goods & Services
3. 10 Lakhs – Supplying Goods or Services in Manipur, Mizoram, Tripura, Nagaland.

It is to be noted that Rs. 40 Lakhs limit is not applicable to Telangana & Pondicherry and the applicable limits are 20 Lakhs in such locations.

If your turnover is exceeding above limits then apply for GST online. It is not a compulsion that one needs to register under GST only if turnover is more than the above limits. He can register even if turnover is less than such limits falling under the category of voluntary registration scheme more clearly described in a later section.

Irrespective Of Turnover Or Sales, Shall Obtain Compulsory GST Registration

1. Sale of goods between the two different states (interstate) including the branches of the same entity. However, the interstate supply of services is not mandatory.
2. Export of goods or services
3. Sale of goods through e-commerce operators. So-called Amazon GST registration.
4. Supply of services through e-commerce operators.
5. Casual taxable person. The temporary GST registration to be obtained when he intends to do business from such a location having no fixed place of business. For instance, a person from Chennai wishes to do business in Delhi on a temporary basis then he needs to obtain such temporary GST registration in Delhi. However, if he supplies from Chennai to his customer located in Delhi then this concept will not apply.
6. Non-resident Indian (NRI) or foreign company intends to do business in India shall register under GST with a valid passport
7. Person liable to pay GST on Reverse Charge Mechanism (RCM) basis.
8. Agent supplies on behalf of the principal. If the principal issues invoice for the supply made by the agent, then this concept will not apply.

Above all, GST number for business is compulsory. So, shall register under GST irrespective of turnover.

Voluntary registration scheme under GST means registering under GST on own notion irrespective of above-referred turnover limits.

Although GST registration is not mandatory for business having turnover below 40 Lakh/ 20 Lakh/ 10 Lakh, few organizations are demanding GST registration details to fulfil their own requirements which make businesses hassle. Few among them are as follows:

1. Opening the current account in any bank
2. Obtaining business loans from banks & financial institutions above certain limits
3. A person providing services online through an e-commerce platform. For example, a restaurant registering in Swiggy/ Zomato are imposed to register under GST even though not required as per the law if the turnover of the restaurant is below 20 Lakh/ 10 Lakh.
4. Apply for government projects
5. Business with government
6. Business with corporate customers. And the list keeps growing…

Nevertheless, GST registration aids to ease of doing business in India.