Upon registration, the business is assigned a unique GSTIN (GST Identification Number) and gains legal recognition as a GST-compliant entity. This allows them to:
⇒ Collect GST from customers
⇒ Claim input tax credit on GST paid
⇒ File GST returns regularly
GST registration helps streamline tax compliance and improves transparency in the taxation process.
Here's a simple chart outlining GST Limits in India based on turnover :
| Category | Threshold Limit for GST Registration | Applicability |
|---|---|---|
|
Goods (Normal States) |
₹40 lakh |
Mandatory if turnover exceeds this limit
|
|
Goods (Special Category States*) |
₹20 lakh |
Lower threshold for specific states
|
|
Services (All States) |
₹20 lakh |
Service providers must register if exceeding this limit |
|
Services (Special Category States*) |
₹10 lakh |
Lower limit for certain states
|
|
Composition Scheme (Goods) |
₹1.5 crore |
Voluntary scheme for small taxpayers
|
|
Composition Scheme (Services) |
₹50 lakh |
Available for service providers
|
Notes:
⇒ Special Category States include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Telangana, Puducherry and Uttarakhand.
⇒ The Composition Scheme allows businesses to pay GST at a lower, fixed rate but restricts interstate trade.
Documents required for GST (Goods and Services Tax) Registration
For Sole Proprietorship/Partnership/LLP/Company
⇒ PAN Card of the business entity.
⇒ Proof of Business Address
• Utility Bill (Electricity, Water, etc.)
• Rent Agreement (if rented)
• Property Deed (if owned)
⇒ Identity and Address Proof of Proprietor/Partners/Directors
• Aadhaar, Passport, Voter ID, etc.
• PAN Card of Proprietor/Partners/Directors.
⇒ Bank Account Statement or Cancelled Cheque (for verification of business bank account).
⇒ Photographs of the Proprietor/Partners/Directors (Passport-sized).