GST Registration and Return Types in India
GST Registration
To register under GST (Goods and Services Tax), businesses must apply for a GSTIN (GST Identification Number) through the GST portal. Goods and Services Tax (GST) registration is mandatory for businesses that meet certain criteria. Here are the key categories:
1. Mandatory Registration
Businesses must register for GST under the following conditions:
- Turnover Threshold:
- ₹40 lakh for goods (₹20 lakh for special category states)
- ₹20 lakh for services (₹10 lakh for special category states)
- Interstate Supply: If a business supplies goods/services across state borders.
- E-commerce Operators: Platforms like Amazon, Flipkart, etc.
- Casual Taxable Person: Businesses operating temporarily in different states.
- Non-Resident Taxable Person: Foreign businesses supplying goods/services in India.
- Reverse Charge Mechanism (RCM): If liable to pay tax under RCM.
- Input Service Distributor (ISD): Companies distributing tax credits within branches.
2. Voluntary Registration
Even if below the threshold, businesses can register voluntarily to avail Input Tax Credit (ITC) benefits.
3. Special Category
- Composition Scheme: For businesses with turnover up to ₹1.5 crore (₹75 lakh for special category states), paying GST at a fixed rate with no ITC benefits.
Special Category States under GST
Special Category States (SCS) are given certain benefits under the GST framework due to their geographical challenges and economic conditions. These states have lower turnover thresholds for GST registration and composition scheme eligibility.
List of Special Category States for GST
The following states were originally considered under the Special Category:
- Arunachal Pradesh
- Assam
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Uttarakhand
- Himachal Pradesh
Note: Jammu & Kashmir was earlier included but was later removed from the special category.
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Key GST Benefits for Special Category States
- Lower GST Registration Threshold
- For Goods: ₹20 lakh (instead of ₹40 lakh for normal states)
- For Services: ₹10 lakh (instead of ₹20 lakh for normal states)
- Lower Composition Scheme Limit
- ₹75 lakh turnover limit (instead of ₹1.5 crore for normal states)
- Higher GST Compensation
- Special Category States receive a higher share of GST compensation from the central government.
GST Return Types
GST-registered businesses must file returns periodically. Below are the key return types:
| Return Type | Who Files It? | Due Date | Purpose |
|---|---|---|---|
| GSTR-1 | Regular taxpayers | 11th of next month | Details of outward supplies (sales) |
| GSTR-2A | Auto-populated | N/A | Auto-generated purchase details (view-only) |
| GSTR-3B | Regular taxpayers | 20th of next month | Summary return (tax liability and ITC claim) |
| GSTR-4 | Composition taxpayers | 30th April of next FY | Quarterly return for Composition Scheme |
| GSTR-5 | Non-resident taxpayers | 20th of next month | Monthly return for foreign businesses |
| GSTR-6 | Input Service Distributors (ISD) | 13th of next month | Details of ITC distribution |
| GSTR-7 | Entities deducting TDS | 10th of next month | TDS return under GST |
| GSTR-8 | E-commerce operators | 10th of next month | Details of TCS collected |
| GSTR-9 | Regular taxpayers | 31st Dec of next FY | Annual return (summary of transactions during the financial year) |
| GSTR-9C | Businesses above ₹5 Cr turnover | 31st Dec of next FY | Reconciliation statement with audited accounts |
| GSTR-10 | Cancelled GST registrations | Within 3 months of cancellation | Final return for closure of business |
| GSTR-11 | UN bodies & embassies | 28th of next month | Details of inward supplies (to claim refunds) |
Here’s a step-by-step guide to the GST registration process in India:
1. Access the GST Portal
- Visit the official GST portal: www.gst.gov.in.
- The process requires verification through Aadhaar, and you may need to link your mobile number to your Aadhaar.
- Click on “Services” > “Registration” > “New Registration”.
2. Fill in Basic Details (Part A)
- Provide key details such as:
- Go to the GST website and register as a new user.
- Select ‘Taxpayer’ and your state or union territory.
- Business type (e.g., proprietorship, company).
- PAN (Permanent Account Number) of the business.
- Mobile number and email ID for OTP verification.
- Submit the form to generate a Temporary Reference Number (TRN).
3. Log In with TRN
- Use the TRN to log back into the portal and continue the registration process.
4. Complete Application Form (Part B)
- Fill in additional details:
- Business name, constitution, and address.
- Bank account details.
- Authorized signatory details.
- Upload required documents such as:
- PAN of the business and owner.
- Proof of business address (e.g., rental agreement, electricity bill).
- Bank account proof (e.g., canceled cheque, bank statement).
- Digital Signature Certificate (DSC) for companies and LLPs.
5. Verify and Submit
- Verify the details using OTP or electronic verification code (EVC).
- Submit the application.
6. Application Processing
- The application will be reviewed by GST authorities. You may be asked to provide additional documents or clarifications.
7. GSTIN Issued
- Upon approval, you’ll receive your GSTIN (Goods and Services Tax Identification Number) and a GST registration certificate via email.
Under the GST Composition Scheme, the turnover limits for businesses and professions are as follows: (These limits are designed to simplify compliance for small taxpayers)
1. Normal Category States:
- The turnover limit is ₹1.5 crore for businesses dealing in goods.
- The turnover limit for service providers or professions is ₹50 lakh.
- For service providers or mixed supply (goods and services), the limit is ₹50 lakh.
2. Special Category States:
- The turnover limit is ₹75 lakh for businesses dealing in goods.
- The turnover limit for service providers or professions is also ₹50 lakh, regardless of the state.
- For service providers or mixed supply, the limit remains ₹50 lakh, regardless of the state.
1. GST Registration for E-Commerce Operators (ECO):
- Mandatory Registration: ECOs are required to register under GST regardless of their turnover (no threshold exemption applies).
- GSTIN: ECOs obtain a unique Goods and Services Tax Identification Number (GSTIN).
- TCS (Tax Collected at Source): ECOs must collect TCS at 1% on net supplies made through their platform by suppliers (e.g., Amazon, Flipkart).
- Filing GSTR-8: E-commerce operators file GSTR-8 to report details of supplies made through their platform and TCS collected.