GST Registration for Small Business – Complete Online Process & Requirements 2025

Starting a business? Selling products? Offering services? You might need GST registration!

GST (Goods and Services Tax) is India's unified tax system. Understanding GST registration is crucial for every business owner.

What is GST?

GST is an indirect tax on supply of goods and services across India. It replaced multiple taxes like VAT, Service Tax, Excise, etc.

One nation, one tax!

Types of GST:

CGST – Central GST (for intra-state sales)SGST – State GST (for intra-state sales)IGST – Integrated GST (for inter-state sales)

Example: You sell product in same state: CGST 9% + SGST 9% = 18% totalYou sell to another state: IGST 18%

Who MUST Register for GST?

Mandatory registration if:

✓ Turnover above ₹40 lakh (goods) in a financial year✓ Turnover above ₹20 lakh (services) in a financial year✓ Turnover above ₹20/10 lakh in special category states (North-East, Himachal, J&K, Uttarakhand)✓ Inter-state supply of goods/services (any turnover)✓ E-commerce sellers (Amazon, Flipkart, etc.)✓ Casual taxable person✓ Agents of suppliers✓ Input service distributors✓ TDS/TCS deductors✓ Online services from outside India✓ Reverse charge mechanism applicable

Who Can Take VOLUNTARY Registration?

Even if turnover below threshold, you can register to:

• Claim input tax credit

• Expand business interstate

• Sell on e-commerce platforms

• Appear more professional

• Deal with registered businesses

Who is EXEMPT from GST?

✓ Farmers selling agricultural produce✓ Businesses below turnover threshold (₹20/40 lakh) operating in one state only✓ Services like educational, healthcare (with conditions)✓ Goods like fresh fruits, vegetables, milk, bread, etc.

Check GST rate schedule for exempt items!

Benefits of GST Registration:

✓ Legal recognition – Your business is official✓ Input tax credit – Reduce your tax burden✓ Interstate sales – Sell across India✓ E-commerce – Can sell on platforms✓ Competitive – Deal with big companies✓ Loan eligibility – Banks prefer GST registered✓ Credibility – Customers trust registered businesses

Documents Required for GST Registration:

For Proprietorship:

• PAN card of proprietor

• Aadhaar card

• Photograph

• Business address proof (electricity bill, rent agreement, property tax receipt)

• Bank account statement/cancelled cheque

• Digital signature (optional for some)

For Partnership:

• PAN of partnership firm

• PAN of all partners

• Partnership deed

• Address proof of business

• Partners' Aadhaar, photo

• Bank details

• Authorization letter

For Private Limited Company:

• PAN of company

• Certificate of Incorporation

• MOA and AOA

• PAN of directors

• Aadhaar and photo of directors

• Address proof of business

• Board resolution

• Bank details

For LLP:

• PAN of LLP

• LLP registration certificate

• LLP agreement

• Partners' documents

• Business address proof

• Bank details

Step-by-Step GST Registration Process:

Step 1: Visit GST Portal

Go to: www.gst.gov.in

Step 2: Click on "Services" > "Registration" > "New Registration"

Step 3: Fill Part-A (Temporary Reference Number - TRN)

Provide:

• Legal name of business

• PAN

• Email ID

• Mobile number

• State

Click "Proceed"

You'll receive OTP on email and mobile. Verify both.

You get TRN (Temporary Reference Number) – Save it!

Step 4: Application Status

Application number sent to email. Use this to complete Part-B.

Step 5: Complete Part-B (Main Application)

Login with TRN and OTP.

Fill detailed information:

A) Business Details:

• Trade name

• Constitution of business

• Date of business commencement

• HSN/SAC codes (your products/services codes)

B) Promoter/Partner Details:

• Name, father's name, DOB

• Residential address

• PAN, Aadhaar

• Designation in business

• Mobile, email

C) Principal Place of Business:

• Address

• Premises ownership (owned/rented/consent/leased/shared)

• Ownership proof

D) Additional Places of Business: (If you have branches, warehouses)

E) Goods and Services:

• Main goods/services you'll deal in

• HSN/SAC codes

F) Bank Account Details:

• Account number

• IFSC code

• Bank name and branch

G) State-Specific Information: (If any, as required by state)

H) Verification:

• Digital signature (for companies)

• E-signature using Aadhaar (for individuals)

• E-sign through authorized signatory

Step 6: Upload Documents

Upload scanned copies:

• Photograph

• PAN card

• Aadhaar card

• Address proof

• Bank account proof

• Authorization/Board resolution (if applicable)

• Partnership deed/Incorporation certificate

Documents must be:

• Clear scanned copies

• PDF format (mostly)

• Size within limits (usually 1MB per file)

Step 7: Verification

Choose verification method:

• E-sign using Aadhaar (easiest)

• Digital Signature Certificate (DSC)

• Electronic Verification Code (EVC) sent to email/mobile

Step 8: Submit Application

After verification, submit application.

ARN (Application Reference Number) generated. Save it!

Step 9: GST Officer Verification

GST officer reviews your application:

• Checks documents

• May visit business premises (physical verification)

• May ask for clarifications

• May call you

Respond promptly to queries!

Step 10: GST Certificate Issued

If everything correct:

• Application approved (usually within 3-7 working days)

• GSTIN (GST Identification Number) allotted

• GST certificate issued (15-digit number)

Download and print GST certificate!

GSTIN Format: State Code (2) + PAN (10) + Entity Number (2) + Z + Check Digit (1)

Example: 27AABCU9603R1Z5

• 27 = Maharashtra

• AABCU9603R = PAN

• 1 = Entity number

• Z = Default

• 5 = Check digit

If Application Rejected:

• Check rejection reasons

• Rectify issues

• Re-apply

• Or file appeal

GST Registration Fees:

ZERO! GST registration is completely FREE.

No government charges.

If you hire CA/professional:

• Proprietorship: ₹1,500-₹3,000

• Partnership/Company: ₹3,000-₹8,000

Time Required:

If documents correct: 3-7 working days

If queries raised: 15-30 days

Composition Scheme – For Small Businesses:

If turnover below ₹1.5 crore, you can opt for Composition Scheme:

Benefits:

• Pay flat GST rate (1-6% depending on business type)

• Simple compliance (quarterly return)

• Less paperwork

Limitations:

• Can't claim input tax credit

• Can't do interstate sales

• Can't sell on e-commerce

• Can't issue tax invoices

Who should opt:

• Small local businesses

• Retailers with low margins

• Service providers (below ₹50 lakh turnover - 6% tax)

After GST Registration – Compliance:

1. Display GSTIN: Put GSTIN on:

• Business premises (signboard)

• Invoices

• Letterhead

• Website

• Delivery vehicles

2. Issue GST Invoices: Every sale must have GST invoice showing:

• GSTIN

• Invoice number and date

• Customer details

• Goods/services description

• HSN/SAC code

• Taxable value

• GST rate and amount

• Total amount

3. Collect GST from Customers: Charge GST on sales, collect from customers.

4. Pay GST to Government:

• Input tax credit: GST you paid on purchases

• Output tax: GST you collected on sales

• Pay difference to government

5. File GST Returns:

Monthly returns:

• GSTR-1 (by 11th of next month) – Outward supplies

• GSTR-3B (by 20th of next month) – Summary return with payment

Annual return:

• GSTR-9 (by 31st December of next year)

6. Maintain Records:

• Invoices (sales and purchase)

• Stock register

• Accounts books

• E-way bills

• Keep for 6 years

Penalties for Non-Compliance:

Late registration: ₹10,000 or tax amount due (whichever higher)

Late filing returns: ₹50/day (CGST) + ₹50/day (SGST) = ₹100/day

Not issuing invoice: ₹25,000 or tax evaded amount

Tax evasion: 100% of tax + imprisonment up to 5 years

Cancellation of GST Registration:

When cancelled:

• Business closed

• Turnover fell below threshold (voluntary registration)

• Applied for cancellation

• Non-filing of returns for 6 months

• Violations

How to cancel:

• Login to GST portal

• File cancellation application

• Submit required documents

• Officer may physically verify

• Cancellation order issued

After cancellation:

• Can't use GSTIN

• Reverse input tax credit

• Pay pending tax

• File final return

Common Mistakes to Avoid:

❌ Wrong HSN/SAC codes❌ Not maintaining proper invoices❌ Missing return deadlines❌ Not claiming input tax credit❌ Wrong GSTIN on invoices❌ Not keeping records❌ Composition scheme when not eligible❌ Interstate sales without registration

Tips for Smooth GST Compliance:

✓ Use GST software/accounting software✓ Reconcile purchases and sales monthly✓ File returns on time (set reminders)✓ Keep digital records✓ Verify supplier's GSTIN before purchasing✓ Hire CA for complex matters✓ Attend GST training/webinars✓ Stay updated on GST changes

GST for E-commerce Sellers:

Mandatory registration even if turnover below threshold!

TCS (Tax Collected at Source): E-commerce platforms (Amazon, Flipkart) deduct 1% TCS from your payments.

Separate compliance:

• Report sales through platform

• File specific returns

• Follow platform's GST guidelines

Real Example:

Sneha runs a boutique in Pune with annual sales of ₹50 lakh. She registered for GST:

• Got GSTIN in 5 days

• Started issuing GST invoices

• Files returns on time

• Claims input credit on purchases

• Saves ₹1.5 lakh yearly through input tax credit

• Expanded business to Goa (interstate sales possible)

Conclusion:

GST registration is essential for growing businesses. While compliance seems complex initially, it becomes routine with practice. Benefits outweigh the hassle – input tax credit, legal recognition, and business expansion opportunities.

Starting a business? Register for GST today and operate legally!