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Regulatory & Compliance

GST Registration

Registration of suppliers of goods and services under the Central Goods and Services Tax Act 2017 and the relevant state GST legislation.

Overview

About this area of practice

The Goods and Services Tax is a destination-based consumption tax levied on the supply of goods and services in India, governed primarily by the Central Goods and Services Tax Act 2017, the State / Union Territory GST Acts, the Integrated GST Act, and the rules framed thereunder.

Registration is mandatory for any supplier whose aggregate turnover exceeds the prescribed threshold (Rs 40 lakh for suppliers of goods and Rs 20 lakh for service suppliers in most states; lower thresholds apply in special-category states). Registration is also mandatory, irrespective of turnover, for inter-state suppliers, suppliers on e-commerce platforms, casual taxable persons, non-resident taxable persons, and persons required to pay tax under the reverse charge mechanism.

LexWiser advises on the registration requirement, the appropriate state of registration, place of supply considerations, and the registration procedure under the GST framework.

Scope

Work typically involved

Engagements in this area generally involve some or all of the following work. The actual scope is set out in the engagement letter once the matter is understood.

01 Assessing whether registration is mandatory and, if so, identifying the appropriate states of registration.
02 Advising on classification of the supply, applicable rates, and the implications of registration for invoicing, input tax credit and return filings.
03 Preparation and electronic filing of Form GST REG-01 with the requisite supporting documents.
04 Responding to deficiency memos or queries raised by the proper officer during processing of the application.
05 Securing the GSTIN and Registration Certificate (Form GST REG-06) on grant of registration.
Approach

How an engagement proceeds

01

Consultation

Assessment of the supply, the turnover, the states of operation and the applicable registration thresholds.

02

Document collection

Collection of supporting documents: PAN, proof of constitution, identity and address of authorised signatory, photographs, proof of principal place of business, and bank details.

03

Filing

Electronic filing of Form GST REG-01 on the GST portal, with the requisite documents and authentication.

04

Verification

The application is verified by the proper officer. Any deficiency memos issued are addressed within the prescribed period.

05

Registration

Issue of GSTIN and Form GST REG-06 by the proper officer. The business may commence collecting and remitting GST under its GSTIN.

Statutory note

On a complete application, GST registration is typically issued within five to seven working days. Where the proper officer issues a deficiency memo, the timeline extends pending response.

Considerations

Points to consider

Mandatory registration triggers

Beyond the turnover threshold, registration is mandatory for inter-state suppliers, e-commerce sellers, reverse charge payers, casual taxable persons and non-resident taxable persons, regardless of turnover.

Composition scheme

Small suppliers with turnover up to Rs 1.5 crore (Rs 75 lakh in some states) may opt for the composition scheme, paying a lower flat rate of tax but without entitlement to claim input tax credit.

Multiple state registration

A separate registration is required in each state from which the supplier makes taxable supplies. A single business may therefore hold multiple GSTINs.

Voluntary registration

Even below the turnover threshold, a supplier may opt for voluntary registration to enable claim of input tax credit and to deal with registered counterparties.

Frequently Asked

About this matter

Is GST registration mandatory for businesses selling on e-commerce platforms? +

Yes. Suppliers of goods through e-commerce operators are required to register irrespective of turnover. Limited exemptions are available for specified categories of suppliers of services.

Is there a government fee for GST registration? +

No government fee is payable for registration. Counsel fees apply only to the advisory and filing work undertaken.

Can the registered office address be changed after registration? +

Yes. Amendment to the principal or additional place of business is permitted by filing an amendment application (Form GST REG-14) within the prescribed period.

What returns must be filed after obtaining registration? +

Returns depend on the category of registration. A normal taxpayer files GSTR-1 and GSTR-3B monthly (or QRMP-based for smaller taxpayers). A composition taxpayer files GSTR-4 annually with quarterly tax payments.

Can registration be cancelled if the business is wound up? +

Yes. Registration may be cancelled by application of the taxpayer or by the proper officer on prescribed grounds. Final return in Form GSTR-10 must be filed on cancellation.

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Discuss this matter with counsel

Every engagement begins with a confidential consultation. Schedule one to understand the scope, approach and fees for your specific matter.

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