Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
GST registration is a fundamental regulatory requirement for any professional or business operating in India. It involves acquiring a unique 15-digit Goods and Services Tax Identification Number (GSTIN), which authorizes your business to collect GST and enables authorities to efficiently track and manage tax compliance. Whether you’re meeting the eligibility criteria, looking to register a new business under GST, or seeking voluntary GST registration, India Company Setup is here to help you complete the process swiftly and in full compliance with GST regulations.
Get in touch with our experts to make your GST registration hassle-free!
Implemented on July 1, 2017, the Goods and Services Tax (GST) system consolidated multiple indirect taxes previously levied by both the Central and State governments. This includes taxes like Service Tax, VAT, CST, Luxury Tax, and Entertainment Tax. The GST system is mandatory for all manufacturers, traders, service providers, and freelancers who meet specific turnover thresholds. Charges for GST registration may vary depending on the business structure and annual turnover.
For businesses with an annual turnover below ₹1.5 crore, the government has introduced a Composition Scheme, offering simpler compliance and reduced tax liability by enabling tax payment at a fixed percentage of turnover.
GST is applicable across every step of the supply chain, from procurement of raw materials to final retail sale. For example, if a product is manufactured in West Bengal but consumed in Uttar Pradesh, the entire GST revenue is credited to Uttar Pradesh, demonstrating the consumption-based tax model of GST.
GST in India comprises three essential parts:
Central Goods and Services Tax (CGST): Collected by the Central Government for intra-state transactions.
State Goods and Services Tax (SGST): Levied by the State Government for transactions occurring within that state.
Integrated Goods and Services Tax (IGST): Applied on inter-state transactions and collected by the Central Government, then distributed to the destination state.
The following categories are obligated to register for GST:
1. Businesses: Entities with an aggregate annual turnover exceeding ₹40 lakhs. For special category states, the threshold is ₹20 lakhs.
2. Service Providers: Required to register if the aggregate turnover crosses ₹20 lakhs, and ₹10 lakhs in special category states.
3. Pre-GST Registered Entities: Businesses formerly registered under VAT, Excise, or Service Tax must migrate to GST.
4. Inter-State Suppliers: Those who deliver goods or services across state lines.
5. Casual Taxable Persons: Individuals or entities providing taxable supply occasionally.
6. Reverse Charge Liability: Entities paying tax under the reverse charge mechanism.
7. Input Service Distributors: Entities distributing the credit of GST paid on services.
8. Agents and Brokers: Those operating on behalf of suppliers.
9. E-commerce Operators: Companies operating online platforms.
10. Non-Resident Taxable Persons: Foreign individuals or firms conducting taxable operations in India.
11. Online Service Providers: Providers of digital services from outside India to individuals within India (not already registered).
GST registration can also be applied for voluntarily. However, it becomes mandatory under certain turnover limits:
Service Providers: Must register once aggregate turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
Goods Suppliers: According to Notification No. 10/2019, suppliers exclusively dealing in goods must register if turnover exceeds ₹40 lakhs, subject to the following conditions:
– Should not be engaged in providing services.
– Must not operate within specific states (e.g., Arunachal Pradesh, Mizoram, Sikkim, etc.).
– Must not be dealing in ice cream, pan masala, or tobacco.
If any of these conditions are not satisfied, the applicable turnover threshold is ₹20 lakhs (or ₹10 lakhs for special category states).
Special Category States include: Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
Aggregate Turnover includes: Taxable supplies + exempt supplies + exports + inter-state supplies. It is PAN-based and includes turnover from all business branches across India.
Registering under GST offers several tangible advantages:
1. Legal Recognition: Ensures your business complies with legal tax requirements.
2. Input Tax Credit: Enables businesses to offset the GST paid on inputs against output liabilities.
3. Seamless Inter-State Trade: Encourages expansion across states without additional taxes.
4. Eliminates Cascading Effect: Reduces the cost of goods and services by removing tax-on-tax.
5. Builds Trust: Instills customer confidence by showing tax transparency.
6. Expanded Market Access: GST-registered vendors are often preferred by large clients.
7. Improved Cash Flow: Better tax management improves internal cash handling.
8. Enhanced Creditworthiness: Positive tax compliance may help improve credit ratings.
9. Legal Protection: Shields businesses from legal disputes and penalties.
10. Simplified Compliance: Easier online filing and return mechanisms.
11. Transparency: Maintains accurate records and boosts professional credibility.
A GST Certificate is an official document issued by the Indian government to registered taxpayers under GST. It contains details such as GSTIN, legal name, trade name, and business address.
This certificate enables:
– GST Collection: Legally collect GST from customers.
– Tax Credit Claims: File input tax credit on expenses.
It also plays a key role in:
– Loan Applications: Serves as proof of financial credibility.
– Government Tenders: Required for participation in many public projects.
– Market Positioning: Demonstrates professionalism and adherence to laws.
GSTIN is a 15-digit unique identifier provided to every registered taxpayer. Once you complete the GST registration via the GST portal, this number becomes the official identity for your business in all GST-related dealings.
Voluntary GST Registration
Businesses not exceeding the mandatory threshold can still voluntarily register for GST. This helps them:
1. Claim input tax credits.
2. Sell across state lines without restrictions.
3. Register on e-commerce platforms.
4. Compete effectively with larger businesses.
Though voluntary, this registration opens the door to greater market opportunities.
Here is a checklist of documents needed based on the business structure:
Sole Proprietor / Individual
1. Owner’s PAN and Aadhaar card
2. Passport-size photo (JPEG, max 100 KB)
– Bank account details*
– Address proof**
Partnership / LLP
1. PAN cards of all partners and authorized signatory
2. Partnership deed copy
3. Photos of all partners and signatories (JPEG, max 100 KB)
4. Address proof (passport, voter ID, Aadhaar, etc.)
5. Proof of authorized signatory appointment
6. Registration certificate/Board resolution for LLP
– Bank account details*
– Business address proof
Hindu Undivided Family (HUF)
1. PAN of HUF
2. PAN and Aadhaar of Karta
3. Photograph of Karta
– Bank account details*
– Business address proof
Private/Public Companies (Domestic & Foreign)
1. Company PAN card
2. Certificate of incorporation
3. MOA and AOA
4. PAN and Aadhaar of authorized signatory (must be Indian)
5. PAN and address proofs of directors
6. Photos of directors and signatories (JPEG, max 100 KB)
7. Board resolution for authorized signatory (PDF or JPEG, max 100 KB)
– Bank account details*
– Principal business address proof
(*Bank Details include a cancelled cheque or bank statement.
**Address Proof includes utility bill, rent agreement, property papers, etc.)
Failing to register for GST or pay taxes on time can result in:
Unpaid Tax Penalty: A fine of 10% of the unpaid tax, subject to a minimum of ₹10,000.
Tax Evasion Penalty: If tax evasion is intentional, the penalty may equal 100% of the due tax.
There is no fee for GST registration itself, but avoiding penalties is vital.
India Company Setup assists with timely GST registration and filing, ensuring you meet all compliance requirements.
With India Company Setup, GST registration is completely digital and cost-effective. Just provide your name, phone number, and email to get started.
A GST specialist will connect with you to understand your business activity and location, and help clarify any doubts.
Our team will collect and verify the documents before initiating the registration process. Once payment is processed, your application will be submitted on the GST Portal.
The GSTIN is generally issued within 3 to 7 working days. There’s no need for you to physically visit any office—everything is online.
GST returns must be filed regularly by every registered taxpayer, even in months with zero transactions. India Company Setup offers comprehensive assistance to ensure you file your returns accurately and on time, helping you stay compliant and avoid fines.
At India Company Setup, we deliver a complete suite of business services to help you start, grow, and manage your company with ease. From registration to regulatory compliance, our expert support ensures your business stays legally sound and financially organized.
Our expert bookkeeping ensures every transaction is correctly recorded, reducing compliance errors and giving you a clear picture of your company’s financial health — crucial for GST, Income Tax, and MCA filings.
Focus on growing your business while we manage your books. By outsourcing to us, you eliminate the burden of paperwork, reconciliations, and regulatory upkeep — saving you both time and effort.
We help you monitor income and expenses in real time, so you maintain a healthy cash position, make informed decisions, and avoid last-minute cash crunches or missed tax deadlines.
GST Registration is the process by which a business gets registered under the Goods and Services Tax (GST) law. Once registered, a unique GSTIN (Goods and Services Tax Identification Number) is assigned. It is mandatory for businesses whose turnover exceeds the prescribed threshold or are engaged in inter-state supply, e-commerce, or specific taxable services.
GST registration is mandatory for:
Businesses with aggregate turnover exceeding ₹40 lakhs (₹20 lakhs for services; limits vary by state)
Inter-state suppliers of goods or services
E-commerce sellers and aggregators
Businesses under reverse charge mechanism
Casual taxable persons and non-resident taxable persons
Key documents include:
PAN card of the business or owner
Aadhaar card of the proprietor/partners/directors
Proof of business address (electricity bill, rent agreement, etc.)
Bank account details
Business registration proof (partnership deed, MOA, etc.)
Photograph of the applicant
GST registration is usually processed within 3 to 7 working days if the application and documents are in order. In some cases, additional verification or physical inspection may be required.
Failure to register when liable can lead to:
Penalties (₹10,000 or 10% of tax due, whichever is higher)
Loss of input tax credit
Legal action by tax authorities
Ineligibility to sell on platforms like Amazon, Flipkart, etc.
Get clear answers to frequently asked questions about proprietorship setup, benefits, legal formalities, and compliance—so you can start your business in India with clarity and confidence.
9915731447
info@indiacompanysetup.com
At India Company Setup, we simplify the process of starting your proprietorship. Our expert team ensures hassle-free registration, timely support, and personalized guidance to help you launch with confidence.
WhatsApp us