The Goods and Services Tax (GST), introduced in India on July 1, 2017, has transformed the indirect tax structure by amalgamating a plethora of state and central taxes into a single unified tax. Registration under GST is the first and fundamental step for any business to become a part of this system. It not only grants legal recognition as a supplier of goods or services but also empowers the entity to collect tax on outward supplies and pass on the input tax credit (ITC).
This article outlines the registration procedure under the GST regime in India, highlighting statutory provisions, eligibility criteria, process, and legal implications.
Legal Framework Governing GST Registration
GST registration is governed primarily by the Central Goods and Services Tax Act, 2017 (CGST Act), along with corresponding State Goods and Services Tax Acts (SGST), Union Territory GST Act, and associated rules and notifications. The relevant provisions include:
Section 22 – Persons liable for registration
Section 23 – Persons not liable for registration
Section 24 – Compulsory registration in certain cases
Section 25 – Procedure for registration
Rule 8 to Rule 19 of CGST Rules, 2017 – Detailed procedural aspects
Persons Required to Obtain Registration
1. Threshold Limits under Section 22
Every supplier is liable to be registered under GST if their aggregate turnover in a financial year exceeds:
- ₹40 lakhs for goods (₹20 lakhs for special category States)
- ₹20 lakhs for services (₹10 lakhs for special category States)
2. Compulsory Registration [Section 24]
Regardless of the threshold, the following categories require compulsory registration:
- Inter-state suppliers
- Casual taxable persons
- Non-resident taxable persons
- Persons required to pay tax under reverse charge
- E-commerce operators and aggregators
- Persons supplying via e-commerce operators
- Input Service Distributors (ISD)
- TDS/TCS deductors under GST
3. Voluntary Registration
Any person, even if not liable, may apply for GST registration voluntarily. Once registered, they are bound by all provisions as a normal taxpayer.
Exemptions from Registration
Section 23 of the CGST Act exempts the following from registration:
- Persons exclusively supplying goods/services that are not taxable or wholly exempt under GST
- Agriculturists, to the extent of supply of produce out of cultivation
Registration Procedure under GST
Step-by-Step Procedure (Online Process)
The registration under GST is completely online through the GST portal: www.gst.gov.in
Step 1: Preparation of Documents
The following documents are typically required:
- PAN of the business/entity
- Aadhaar Card (for Aadhaar authentication)
- Proof of business registration or incorporation
- Identity and address proof of promoters/directors
- Bank account details
- Address proof of principal place of business
- Digital Signature Certificate (DSC), if applicable
Step 2: Part A – Preliminary Details
Visit the GST portal and select “New Registration.” Enter:
- Legal name (as per PAN)
- PAN
- Email ID
- Mobile number
- State and District
After submission, an OTP is sent to verify the mobile and email. A Temporary Reference Number (TRN) is generated.
Step 3: Part B – Application Form (GST REG-01)
Using the TRN, access Part B of the form and provide:
- Business details
- Promoters/partners/directors’ information
- Place of business
- Goods and services offered
- Bank account details
- State-specific information (professional tax, state excise license, etc.)
Upload the relevant documents in PDF or JPEG format.
Step 4: Verification and Submission
The form must be signed using:
- Electronic Verification Code (EVC) – for proprietors and certain applicants
- Digital Signature Certificate (DSC) – mandatory for companies and LLPs
Step 5: Aadhaar Authentication (Optional but Recommended)
Post-submission, an Aadhaar authentication link is sent. If verified, the registration is granted within 3 working days. If not authenticated, the application goes into physical verification mode.
Grant of Registration
- If the application is complete and verified, a GSTIN (Goods and Services Tax Identification Number) is issued within 7 working days.
- The certificate of registration is available online in Form GST REG-06.
Cases of Physical Verification
If the officer is not satisfied with the application or if Aadhaar authentication fails, the officer may order physical verification under Rule 9(4). The registration may then take up to 30 days from application.
Special Categories of Registration
1. Casual Taxable Persons (CTP) – Section 27
- Valid for 90 days (extendable)
- Advance tax payment required based on estimated liability
- Registration using Form GST REG-01
2. Non-Resident Taxable Person (NRTP)
- Similar to CTP
- Foreign business entities providing taxable supplies in India
- Requires advance tax payment
3. TDS/TCS Deductors – Sections 51 & 52
- Government agencies or e-commerce operators deducting TDS/TCS
- Registration through Form GST REG-07
Amendment, Cancellation, and Revocation
1. Amendment of Registration – Rule 19
Use Form GST REG-14 within 15 days of any change. Changes may be:
- Core fields (legal name, business address, etc.) – approval required
- Non-core fields (contact info, bank details) – auto-approved
2. Cancellation of Registration – Section 29
Initiated:
- Suo motu by officer (non-compliance)
- By taxpayer (closure, transfer, etc.)
- Application in Form GST REG-16, and final return must be filed in Form GSTR-10.
3. Revocation of Cancellation – Rule 23
If registration is cancelled by the officer, the taxpayer can apply for revocation in Form GST REG-21 within 30 days of cancellation order.
Penalty for Non-Registration
As per Section 122, any person who fails to obtain registration despite being liable shall be liable to:
- A penalty of ₹10,000 or
- Amount equivalent to tax evaded, whichever is higher
If a registered person short-pays tax, receives erroneous refunds, or wrongly avails ITC (without fraud or intent to evade), they are liable to a penalty of ₹10,000 or 10% of the tax due, whichever is higher.
Judicial Pronouncement
B.C. Mohankumar v. Superintendent of Central GST, W.P. No. 13272 of 2022
The petitioner challenged the rejection of his GST registration application, which was denied without any reasons in a one-word order stating “rejected.” The Court noted that despite the petitioner furnishing the required proof of principal place of business (a registered lease deed), the respondent failed to consider it or provide a speaking order. Justice Anita Sumanth held that such a non-speaking, arbitrary order violates principles of natural justice. Citing Rule 9(4) of the CGST Rules, the Court clarified that while rejection is discretionary, reasons must be recorded.
The order was set aside and the authority was directed to reconsider the application with due process within four weeks.
Recent Updates and Notifications
Notification No. 62/2020 – Central Tax (August 2020): Mandated Aadhaar authentication for GST registration.
Circular No. 95/14/2019-GST: Clarified registration issues faced by CTPs and NRTPs.
E-invoicing system integration: GSTIN is now auto-validated for B2B transactions via e-invoicing.
Conclusion
GST registration is not merely a compliance requirement but a gateway to formal recognition under the indirect tax regime. The procedural simplicity offered by the online portal has enhanced transparency and efficiency. However, compliance with documentation, timely application, and accurate disclosure remains critical to avoid penalties and cancellation. As the GST system continues to evolve, staying updated on procedural and legal requirements is essential for every business entity in India.