Types of GST Registration for Indian Tax Payers

What is meant by GST Registration?

Registering with the Goods and Services Taxes (GST) Ministry is known as “GST Registration." The Goods and Services Tax (GST) is an indirect tax and a significant change to India’s tax system. All enterprises, dealers, and other entities with a taxable turnover above the threshold must register for GST. Every firm or person with annual revenue of more than Rs. 20 lakhs, as stipulated by the new GST system, must register for the Goods and Services Tax. An organization’s GSTIN is not issued until the online GST registration procedure is finished. The 15 digits of this number are unique. The GSTIN is required at many points in the tax filing, billing, and processing processes for all taxpayers. To finish the registration procedure, one must visit the official GST registration online website.

Types of GST Registration

The following is a list of the several types of GST registration under their respective categories:

  • The Average Taxpayer
    Every taxpayer who runs a company in India must register for the Goods and Services Tax (GST). These taxpayers are exempt from having to make a deposit, and their validity dates are not restricted in any way.
  • Taxpayer Who Is Not a Resident
    Individuals outside India who sell products and services to people in India must register as non-resident taxpayers under the Goods and Services Tax (GST).
  • Taxpayer Who Is a Composite
    Under the GST Composition Scheme, individuals have the option to register to become composite taxpayers. Those registered under this plan are subject to a standard rate of GST taxation; nevertheless, they are not eligible for an input tax credit.

Documents Required GST Registration

  • Certificate of Entity Status Documentation establishing ownership, management, or partnership.
  • Photo IDs of all owners, directors, and partners in passport size.
  • Address verification for owners, directors, and partners.
  • A copy of the business’s partnership agreement or certificate of the establishment.
  • Specifics about a bank account.

Eligibility For GST Registration

According to the Goods and Services Tax Act of 2017, every company operating in India with a revenue of more than Rs.40 lakh per year must register for GST. The minimum annual turnover required to qualify for GST registration in northeastern and hill states is Rs. 10 lakh.

Additionally, the following persons and businesses are required to submit an application for GST registration and earn a unique GSTIN number of 15 digits:

  • Persons who make the interstate supply of taxable products and services are not businesses.
  • Individuals who are subject to taxation under the reverse charge system.
  • Non-resident taxable persons.
  • Section 37 of the Internal Revenue Code allows for tax deductions for individuals.
  • Persons who, in the position of an agent or any other way, provide goods and services on behalf of another registered taxpayer to fulfill that taxpayer’s order.
  • Persons who engage in the capacity of distributors of input services.
  • Every single person who runs an online store.
  • Aggregators that are providing their services under a new brand or trade name.
  • Any company that the Central or State Government has given notification to following the recommendations of the GST Council.
  • Independent companies registered under the legislation that existed before the GST (i.e., VAT, Service Tax, Excise, Or any other State or Central Tax, etc.).
  • Companies whose annual sales revenue is more than the prescribed minimum of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh, and Uttarakhand).
  • Casual taxable person / Non-Resident taxable person.
  • Agents of suppliers and distributors of input services are examples of taxpayers who pay tax via the reverse charge system.
  • An individual who acts as a supplier for e-commerce aggregators.
  • Every e-commerce aggregator.

Benefits of GST Registration

The Goods and Services Tax or GST registration lets you get your company recognized as a legal registrant and makes you authorized to do business in India. It paves the way for a variety of new options for your company. The following are some of the benefits that come with having a GST registration:

  • Become more competitive.
  • Develop your company further online.
  • May get a credit for the tax paid on inputs.
  • Put in a bid for a government contract.
  • Establish a Running Bank Account.
  • Dealing with Multinational Corporations

Consequences Of Breaching The Requirements To Register For GST?

Let’s talk about the penalty for not having GST registration in India, also known as the penalty for late GST registration or failure to accept GST registration.

Any company or entity exempt from paying tax must pay a penalty equal to 10% of the total amount of tax owed, with a minimum payment of Rs.10,000.

Any taxable person or business owner who fails to register under the GST Goods and Services Tax Department, even if they are legally bound to do so as per GST Goods and Service Tax Act, is required to pay the following amount of penalty following the GST Act Law. The amount is:

10,000 INR, or the equivalent amount in taxes not paid, whichever is greater.

Consider the following example to understand the late GST registration penalty better:

If Mr. X cannot register for GST and the entire amount of tax he avoids paying is 30,000 INR, then a penalty of 30,000 INR will be imposed in this scenario.

If Mr. Y cannot successfully register for GST and the entire amount of tax he avoids paying amounts to 8,000 INR, he will be required to make a penalty payment of 10,000 INR.


Can a company operate in many states using the same pan number and registration?

No. Every company that is required to register for GST must do so individually for each state in which they do business and are required to pay GST under the CGST/SGST Act.

Can a corporate entity in a state with various business verticals receive separate registrations for each of them?

Yes. Individuals with several business verticals in a state must get a separate registration for each company vertical under the GST Act.

Is it possible for a person or corporation to voluntarily register even if they are not required to pay GST?

Yes. According to Section 25, sub-section (3), any firm or person might voluntarily register, even if not required to be registered. All provisions of the GST Act will apply to such a company or person.

When will the registration become active once it has been submitted?

When the person’s application for registration is received within thirty days of the date on which the person becomes subject to registration, the date on which the person became subject to registration will serve as the effective date of the registration.

If an applicant submits their application for registration more than thirty days after the date on which they become subject to registration, the date on which they are granted registration will serve as the effective date of the applicant’s registration. Suppose a person voluntarily applies for registration while remaining below the threshold exemption limit for not having to pay tax. In that case, the date of the order of registration will serve as the effective date of registration.

Can an individual who is not registered for GST claim ITC and collect tax?

No. A person not registered for GST cannot collect GST from his clients, nor can he receive an input tax credit for GST paid.

Is there a way to use a digital signature while registering for GSTN, or is it not an option?

Taxpayers would have the opportunity to sign their applications with legally binding digital signatures if they chose to submit them. There will be two options for electronically signing the application or other submissions: the first is by e-signing through an Aadhar number, and the second is through DSC, which means by registering the taxpayer’s digital signature certificate with the GST portal. Both of these options will be available. However, only digital signature certification (DSC) will be accepted as a valid form of signature for businesses and limited liability partnership organizations. Only DSC certifications proper at levels 2 and 3 will be accepted for signatures.