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Goods & Service Tax Registration

The GST is an all-in-one tax that subsumes a variety of state (VAT, Entertainment Tax, Luxury Tax, Octroi) and central taxes (CST, Service Tax, Excise Duty).

GST in India: What You Need to Know


The introduction of the Goods & Services Tax (GST) should please Indian businesses. Compared to the earlier tax regime, it tremendously simplifies matters. New businesses now require fewer registrations and compliance will also be easy.

As the name suggests, GST applies to all types of businesses, whether they sell goods, offer services, manage events, etc. It even applies to freelancers and consultants.

GST will be imposed at the time of consumption, and the net tax will be calculated after accounting for all the taxes paid on input, just as in the case of VAT.


Eligibility for GST Registration


Supply Turnover: Within GST, you will not be collecting tax on sales, but on supply. Therefore, stock transfer, freebies and even discounts will attract GST. If your current combined supply is over Rs. 20 lakh, you are eligible for GST Registration (if your business operates exclusively in the North Eastern states, Rs. 10 lakh).

‘Other’ Businesses: If you are supplying non-taxable products or are in the export business, you need to apply for GST Registration. This will even apply to those in the software business, the export of which was previously untaxed.

Existing Taxpayers: If you already have a VAT Registration, Service Tax Registration or are registered under any of the laws that are to be subsumed by GST, you will be granted provisional registration. Once you are granted a provisional registration, you must apply for GST Registration within six months.

Inter-state sales: If you are supplying goods or services to another state, you need to apply for GST regardless of turnover. The applies to e-commerce businesses.


GST Registration & Documents


All businesses eligible for GST registration are required to apply for GST registration within 30 days of becoming liable. Non-resident taxable persons and casual taxable persons will need to apply five days before they begin offering goods and services within India.

The following documents will be required:

✔ PAN Card of proprietor/LLP/company

✔ MoA & AoA/LLP Agreement

✔ Directors’/Partners’ names and address proof


CGST vs SGST vs IGST


GST is a consumption-based, which means that the tax is to be collected by the state in which the goods or services were consumed, not where they were manufactured. However, the bulk of GST will be with the central government, as its three components make clear.

Central GST

Central GST is the component of GST that will be levied by the central government on all items, both goods and services. It only applies to intra-state trade.

State GST

State GST is the component of GST that will be levied by the state government on all items, both goods and services. It only applies to intra-state trade.

Integrated GST

Integrated GST is the component of GST that will be levied by the central government in case of inter-state trade. It is applicable on all items, both goods and services.


Breaking Down the GSTIN?


The 15-digit GSTIN or the unique identification number provided on GST registration carries some significant details on it.

1. The first two digit of the GSTIN are the State Code.

2. The next ten digits (3 to 12) is your PAN Number.

3. The 13th digit is the Entity Code and will be assigned to the type legal entity you are registering under. Thus, if your application (with a particular kind of legal entity) is second in the state, the 13th digit would be ‘2’. It is again a state-based number.

4. The 14th digit is left BLANK at present, to be filled at a later stage, by the deciding authorities.

5. The 15th digit is a redundancy CHECK DIGIT used to provide Unique identification and for providing accuracy.

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