How a New Applicant Can Apply For the GSTIN

In India, the Goods and Services Tax (GST) has transformed the way indirect taxes are levied and collected. Whether you are an entrepreneur starting a new business, an existing trader, or a service provider, obtaining a GSTIN (Goods and Services Tax Identification Number) is crucial for compliance with tax regulations.

In this blog, you will learn how to apply for the GSTIN for a new applicant in India.

What is GST?

The Goods and Services Tax (GST) is a comprehensive indirect tax system implemented in India to unify various central and state taxes into a single, streamlined framework. Introduced on July 1, 2017, through the Constitution (One Hundred and First Amendment) Act, 2016, GST aims to create a common national market by eliminating the cascading effect of multiple taxes.

What is a GSTIN?

The Goods and Services Tax Identification Number (GSTIN) is a 15-digit unique alphanumeric code given to every taxpayer registered under the Goods and Services Tax (GST) regime in India. It acts as an official identification number that allows businesses to collect tax, claim input tax credit, and comply with GST regulations. This helps to ensure smooth and transparent tax compliance within the system.

Who Should Apply for a GSTIN?

Under the Goods and Services Tax (GST) regime in India, obtaining a Goods and Services Tax Identification Number (GSTIN) is mandatory for certain individuals and entities.

1. Businesses Exceeding the Aggregate Turnover Threshold

Any individual or business whose total turnover in a financial year exceeds Rs. 40 lakhs for goods and 20 lakhs for services (Rs. 20 lakhs (for goods) Rs. 10 lakhs for Special Category States) must register under GST. The total turnover includes taxable and exempt supplies, exports of goods and services, and interstate supplies made by entities sharing the same Permanent Account Number (PAN).

2. Inter-State Suppliers

Anyone involved in supplying goods or services across state borders must register for GST, even if their annual turnover is below the usual threshold. This rule ensures proper tax tracking for interstate transactions.

3.  Casual Taxable Persons

Casual taxable persons are individuals or businesses that occasionally supply goods or services in a state or union territory where they do not have a permanent business location. They must register under GST as casual taxable persons. This registration should be completed at least five days before starting business activities in that location to remain compliant with GST rules.

4. Non-Resident Taxable Persons

Non-resident individuals or entities engaging in taxable supplies in India are required to register under GST at least five days before commencing business. They must apply for registration irrespective of the turnover threshold.

5. Paying Tax under the Reverse Charge Mechanism

Entities or individuals obligated to pay tax under the reverse charge mechanism must register for GST, regardless of their turnover. This ensures that the correct tax is paid directly by the recipient of goods or services.

6. Paying taxes through forward charge mechanism

The forward charge mechanism (FCM) under GST refers to a taxation method where the supplier of goods or services is liable to pay the tax. Unlike the reverse charge mechanism, where the recipient is responsible for the tax, the forward charge ensures that the supplier accounts for the GST at the point of supply.

7. Agents of a Supplier

Persons acting as agents on behalf of a supplier are required to obtain GST registration.

8. Input Service Distributors (ISD)

An Input Service Distributor (ISD) must register under GST to allocate the credit of input services to its branches that share the same Permanent Account Number (PAN)

9. E-commerce Operators

Every electronic commerce operator is required to register under GST, irrespective of the turnover.

10. Persons Supplying through E-commerce Operators

Persons who supply goods or services through e-commerce operators are required to register under GST, irrespective of their turnover.

11. Persons Required to Deduct Tax at Source (TDS) or Collect Tax at Source (TCS)

Individuals or entities who are required to deduct Tax Deducted at Source (TDS) under Section 51, or collect Tax Collected at Source (TCS) under Section 52 of the CGST Act, must mandatorily register under GST. This requirement applies irrespective of their turnover.

12. Others Notified by the Government

The government may notify other categories of persons who are required to obtain GST registration.

Documents Required for GSTIN Application

Here’s a complete list of documents required for GSTIN (Goods and Services Tax Identification Number) application in India, depending on the type of business:

 1. For Sole Proprietorship

• PAN card of the proprietor
• Aadhaar card of the proprietor
• Passport-size photo
• Bank account details (copy of cancelled cheque or bank statement)
• Address proof of business place (electricity bill, rent agreement, or property documents)
• Letter of Authorization (if someone else is filing)

2. For Partnership Firm / LLP

• PAN card of the partnership firm or LLP
• Partnership deed or LLP agreement
• PAN and Aadhaar of partners
• Photographs of partners
• Proof of principal business address
• Bank account details
• Authorization letter signed by partners
• Incorporation certificate (for LLPs)

3. For Private/Public Limited Company

• PAN card of the company
• Certificate of Incorporation
• Memorandum & Articles of Association (MoA & AoA)
• PAN and Aadhaar of directors
• Photographs of directors
• Board resolution or authorization letter for authorized signatory
• Proof of business address (utility bill, rent agreement, etc.)
• Bank account details

4. For HUF (Hindu Undivided Family)

• PAN of HUF
• PAN and Aadhaar of the Karta
• Photograph of Karta
• Proof of business address
• Bank account details

5. Common Documents for All Categories

• Digital Signature Certificate (DSC) (mandatory for companies and LLPs)
• Mobile number and email ID of the primary authorized signatory
• Business activity details (goods/services supplied)

How to apply for the GSTIN for a new applicant in India?

Here is the step-by-step process to apply for GSTIN for a new applicant in India:

Step 1: Access the GST Portal

You must visit the official GST portal to begin the GST registration process. Under the “Services” tab, choose “Registration” and click on “New Registration.”

Step 2: Complete Part A of the Registration Form

To fill out Part A of the GST registration form, you need to choose “Taxpayer” under “I am a,” then select your State/UT and District. Enter your legal name as per PAN, along with your PAN, mobile number, and email. Once you enter the CAPTCHA, click on “Proceed.” You will receive OTPs for verification on your phone and email.

Step 3: Receive Temporary Reference Number (TRN)

Once your details are verified, a Temporary Reference Number (TRN) will be sent to your registered email and mobile number. You also need to note this TRN for future reference.

Step 4: Complete Part B of the Registration Form

Return to the GST portal and navigate to the “Services,” then click on “Registration,” followed by “New Registration.” Choose the “Temporary Reference Number (TRN)” option, enter your TRN and the CAPTCHA code, and complete OTP verification. You will then be redirected to the application form, where you need to provide all required details.

Step 5: Upload Required Documents

You must attach the required documents based on your business entity type. Ensure that the files are in the prescribed format and within the specified size limits.

Step 6: Verification and Submission

Once you have reviewed your application form and attached documents, submit the application using one of the available methods, including Digital Signature Certificate (DSC), e-Sign with Aadhaar OTP, or Electronic Verification Code (EVC). Ensure all details are accurate before submission.

Step 7: Acknowledgment

Once you successfully submit your GST application, an Application Reference Number (ARN) will be generated. This ARN will be sent to your registered email ID and mobile number.

Step 8: Application Processing

The GST officer will process your application. If additional information or documents are required, you will receive a notification.

Step 9: GSTIN Issuance

Once approved, you will receive your GSTIN and a GST registration certificate.

GST Registration Status and Approval

You can easily check the progress of your GST registration application on the official GST portal. Go to the “Services” section, select “Registration,” and click on the “Track Application Status.” Then, enter your Application Reference Number (ARN) to view the latest status of your application. This helps you stay updated throughout the registration process.

The approval process for GST registration involves several steps. Here are mentioned below:

1. Application Submission: After submitting your registration application, it is reviewed by the appropriate tax officer.
2. Verification: The tax officer reviews the application and documents to ensure completeness and authenticity. During verification, the officer may request additional documents or clarification. If required, a notice in FORM GST REG-03 will be issued. You will have seven working days to provide the required information in FORM GST REG-04 to continue the process.
3. Approval: Upon satisfactory verification, the registration is approved, and a Registration Certificate in FORM GST REG-06 is issued. The certificate is available to the applicant electronically through the GST portal.

In certain cases, such as for Central Excise registrations, a physical verification of the business premises may be conducted by the jurisdictional Range Officer. The outcome of this verification is then approved by the Assistant Commissioner or Deputy Commissioner.

GST Registration Fees

GST registration in India is completely free if done directly through the official government GST portal. The government does not charge any fee for issuing a GSTIN. However, many businesses choose to hire Chartered Accountants or tax consultants for help, and their fees vary based on the business structure and requirements.

Benefits of GSTIN Registration:

Below are the benefits of GST registration

1. Legal Recognition

GST registration gives your business official recognition as a legal supplier of goods or services. It enhances credibility with clients and authorities, making your business eligible for tax benefits, government contracts, and formal credit facilities, which are often restricted to registered entities.

2. Input Tax Credit (ITC)

Businesses registered under GST can claim Input Tax Credit on the GST paid for purchases and services used in operations. This reduces the overall tax burden, prevents tax cascading, and improves cash flow, making the pricing of goods and services more competitive and transparent.

3. Ease of Interstate Trade

GST registration allows businesses to conduct interstate transactions without the need for multiple state-specific taxes or forms. It simplifies logistics and compliance, enabling smooth expansion and distribution across India under a single tax system, thus reducing administrative hassle and cost.

4. Access to E-Commerce Platforms

To sell products or services on e-commerce platforms like Amazon, Flipkart, or Meesho, GST registration is mandatory. It opens up nationwide market access, helping small and medium enterprises reach more customers, boost visibility, and grow their online sales efficiently.

5. Enhanced Business Credibility

Being GST-registered increases a business’s credibility among customers, vendors, and financial institutions. It shows compliance with tax laws and instills trust, making it easier to attract corporate clients, secure investments, and qualify for formal financing from banks or NBFCs.

6. Simplified Tax Structure

GST replaces multiple indirect taxes like VAT, service tax, and excise duty with one unified tax. This reduces the complexity of tax compliance, lowers the chances of errors, and streamlines the filing process, allowing businesses to focus more on growth and operations.

7. Eligibility for Government Tenders

Many government projects and tenders require bidders to have a valid GSTIN. Registration allows businesses to qualify for public contracts and take advantage of procurement opportunities, especially in infrastructure, supply, and service sectors funded by government agencies.

Conclusion

Obtaining a GSTIN is essential for tax compliance and smooth business operations in India. The online process is streamlined, user-friendly, and free of cost through the GST portal. By understanding the eligibility, documentation, and step-by-step registration process, new applicants can register without hassle. Timely registration helps avoid penalties and allows businesses to enjoy the benefits of the unified tax system. If you want to take assistance while registering for GSTIN, you can contact Online Legal India. They have experts to assist you.