A Founder’s Guide to GST Registration in India: Everything You Need to Know

For any new founder in India, navigating the landscape of business compliance can be daunting. At the top of that list is the Goods and Services Tax (GST). Understanding and completing your GST registration is not just a legal requirement; it’s a foundational step that legitimizes your business and enables you to operate smoothly within the Indian economy.

But what exactly is it, who needs it, and how do you get it done without getting lost in the paperwork? This guide will break down everything you need to know in simple, actionable terms.

What is GST?

The Goods and Services Tax (GST) is a single, comprehensive indirect tax levied on the supply of goods and services across India. It replaced multiple cascading taxes like VAT, Service Tax, and Excise Duty, simplifying the tax structure and creating a unified market. For a business, being GST-registered means you can legally collect tax from your customers and claim credits for the tax you’ve paid on your business purchases.

Who Needs to Register for GST?

While not every business needs to register immediately, you are legally required to obtain a GSTIN (GST Identification Number) if you meet any of the following criteria:

• Turnover Threshold: Your aggregate annual turnover exceeds ₹40 lakhs for businesses supplying goods, or ₹20 lakhs for businesses providing services. (Note: The threshold is ₹10 lakhs for certain special category states).
• Inter-State Business: You are engaged in the supply of goods or services from one state to another, regardless of your turnover.
• E-commerce Operations: You sell goods or services through an e-commerce platform like Amazon or Flipkart.
• Specific Business Types: You are a casual taxable person, a non-resident taxable person, or an agent for a supplier.

Even if you don’t meet these criteria, voluntary registration can be beneficial, as it allows you to claim input tax credits and work with larger, GST-compliant businesses.

The GST Registration Process: A Step-by-Step Overview

The process is primarily online through the official GST portal.

1. Part-A: TRN Generation: Visit the GST portal and fill out Part A of the REG-01 form with your PAN, mobile number, and email address. These will be verified with OTPs, and you will receive a Temporary Reference Number (TRN).
2. Part-B: Application Filing: Using the TRN, log back in and fill out Part B of the form. This is where you will provide detailed information about your business, promoters, authorized signatories, and bank accounts.
3. Document Upload: You will be required to upload scanned copies of all necessary documents (see checklist below).
4. ARN Generation: After submitting the application and documents, you will receive an Application Reference Number (ARN) to your registered email and mobile number.
5. Verification by Officer: A designated GST officer will review your application. They may approve it, or they may raise a query if they find any discrepancies.
6. GSTIN Allotment: Upon successful verification, you will be allotted your unique 15-digit GSTIN, and your GST Registration Certificate (Form REG-06) will be available for download.

Documents Required for GST Registration

Having these documents ready will make the process much smoother:

• PAN Card of the business or proprietor/partners/directors.
• Aadhaar Card of the proprietor/partners/directors.
• Proof of Business Constitution (e.g., Partnership Deed, Certificate of Incorporation).
• Proof of Principal Place of Business (e.g., Electricity Bill, Rent Agreement, or ownership documents).
• Bank Account Details (a scanned copy of a cancelled cheque or bank statement).
• Photograph of the proprietor/partners/directors.
• Letter of Authorization/Board Resolution for authorized signatory.

Common Mistakes to Avoid

• Incorrectly Selecting Business Type: Ensure you choose the correct legal structure (Proprietorship, LLP, Pvt Ltd, etc.) as it’s difficult to change later.
• Mismatch in Documents: Ensure the name and address on your PAN, Aadhaar, and bank documents are identical.
• Vague Business Description: Clearly state your primary business activities and provide the correct HSN (for goods) or SAC (for services) codes.

The Bottom Line

GST registration is a critical milestone for any serious business in India. While the process is online, it requires careful attention to detail to avoid errors and delays. Getting it right from the start ensures you are compliant, builds trust with your customers, and sets a solid foundation for your company’s financial health.

Feeling overwhelmed? You don’t have to do it alone. At InPursuit, we specialize in guiding founders through the entire registration process, ensuring it’s done quickly and correctly. Feeling overwhelmed? You don’t have to do it alone. At InPursuit, we specialize in guiding founders through the entire registration process, ensuring it’s done quickly and correctly. Contact us today for a free consultation and let us handle the compliance, so you can focus on building your business.