GST Registration & Compliance – A Brief Overview

What is GST Registration?

Goods and Services Tax (GST) is a mandatory indirect tax for businesses supplying goods or services in India. Registration under GST provides a unique GSTIN (Goods and Services Tax Identification Number) and enables businesses to legally collect and pay GST.

1. Who Needs GST Registration?

📌 Mandatory Registration:

• Businesses with annual turnover exceeding ₹40 lakh(₹20 lakh for services).
• Interstate suppliersof goods/services.
• E-commerce operatorsand sellers on platforms like Amazon, Flipkart, etc.
• Businesses dealing in import/export.
• Businesses under Reverse Charge Mechanism (RCM).

📌 Voluntary Registration:

• Businesses below the threshold limit can register to avail Input Tax Credit (ITC)and expand market opportunities.

2. GST Registration Process

Step 1: Online Application on GST Portal

✅ Visit www.gst.gov.in and fill Form GST REG-01.

Step 2: Submit Required Documents

📌 For Proprietorship:

• PAN & Aadhaar of proprietor
• Address proof & business details

📌 For Partnership/LLP:

• PAN & Aadhaar of partners
• Partnership deed
• Business address proof

📌 For Private Limited / LLP / OPC:

• Company PAN & Incorporation Certificate
• MOA & AOA
• Board resolution & Digital Signature (DSC)

Step 3: GST Officer Verification

• If documents are correct, GSTIN is issued within 3-7 days.
• If additional details are needed, a query is raised via GST REG-03, which must be responded to within 7 days.

Step 4: GST Certificate Issuance

• Once approved, GST Certificate is issued, and the business can start collecting GST.

3. GST Monthly & Yearly Compliances

📌 Monthly GST Filings

✅ GSTR-1 (Sales Report) – Filed by 11th of every month (for businesses over ₹5 Cr turnover).
✅ GSTR-3B (Summary Return & Tax Payment) – Filed by 20th of every month.

📌 For QRMP Scheme (Small Businesses, <₹5 Cr turnover):

• GSTR-1: Quarterly Filing
• GSTR-3B: Monthly Payment, Quarterly Filing

📌 Annual GST Compliances

✅ GSTR-9 (Annual Return) – Must be filed by 31st December for the previous financial year.
✅ GSTR-9C (Audit Report) – Required for businesses with turnover exceeding ₹5 Cr.

4. Penalties for Non-Compliance

❌ Late Filing Penalty: ₹50 per day (₹20 for NIL returns).
❌ Failure to Register: 10% of tax due or ₹10,000, whichever is higher.
❌ Wrongful ITC Claim: 100% penalty + interest.

5. Key Benefits of GST Registration

✅ Legally compliant business operations
✅ Seamless interstate trade without restrictions
✅ Eligibility for Input Tax Credit (ITC)
✅ Improved business credibility