Introduction
In India, Goods and Services Tax (GST) has streamlined the indirect tax structure by replacing multiple taxes with a unified regime. With the evolving business ecosystem, especially in the digital and startup sectors, GST registration has become a crucial compliance measure. For FY 2025–26, timely registration and understanding the implications of GST are essential for smooth business operations, legal standing, and tax credit availability.
Who Needs to Register for GST in FY 2025–26?
GST registration is compulsory for:
- Businesses with aggregate turnover exceeding ₹40 lakh for goods and ₹20 lakh for services. The above limit is for Normal Category states and turnover limit for special category states is ₹ 20 lakh for goods and ₹ 10 Lakh for services
- Persons making inter-state taxable supply.
- Casual taxable persons and non-resident taxable persons.
- E-commerce operators and sellers.
- Input Service Distributors (ISDs).
- Those required to pay tax under the reverse charge mechanism.
- Persons deducting TDS/TCS under GST.
- Agents of a supplier.
- Every person supplying goods or services on behalf of another registered taxable person.
Some states have opted for different limits:
States with ₹40 lakh limit: Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, and others
States with ₹20 lakh limit: Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, and Uttarakhand
Special cases: Jammu and Kashmir, Ladakh, and Assam have opted for the ₹40 lakh limit despite being special category statesVoluntary Registration – When Should You Consider It?
Even if your turnover does not exceed the threshold, you can opt for voluntary GST registration. Advantages include:
- Claiming Input Tax Credit (ITC).
- Increased credibility with stakeholders.
- Participation in e-commerce platforms.
- Smooth inter-state operations.
Benefits of GST Registration
- Legal recognition and brand value enhancement.
- Input Tax Credit benefits.
- Ease of doing business across states.
- Required for government tenders and export incentives.
- Access to formal credit facilities from banks.
- Better compliance tracking and operational efficiency.
Documents Required for Different Types of Entities
Sole Proprietorship:
- PAN and Aadhaar card
- Photograph of the proprietor
- Business address proof (rent agreement, utility bill, etc.)
- Bank statement or cancelled cheque
Partnership/LLP:
- PAN card of firm/LLP
- Partnership deed or LLP agreement
- PAN and Aadhaar of partners
- Proof of business premises
- Authorization letter
Private Limited/Public Limited Company:
- Certificate of Incorporation
- PAN of company
- MOA and AOA
- Identity and address proof of directors
- Digital Signature Certificate (DSC)
- Board resolution
- Principal place of business proof
Step-by-Step Online Registration Process on GST Portal
1. Visit [www.gst.gov.in](http://www.gst.gov.in).
2. Select ‘Services’ → ‘Registration’ → ‘New Registration.’
3. Fill in Part A of the form (legal name, PAN, contact details).
4. Verify via OTP (email and mobile).
5. Receive Temporary Reference Number (TRN).
6. Fill Part B using TRN and upload documents.
7. Submit the form using DSC or EVC.
8. Acknowledgment Reference Number (ARN) is generated.
9. Receive GSTIN and certificate within 7 working days (subject to verification).
Key Points to Remember During Registration
- Ensure documents are clear and legible.
- Details in PAN, Aadhaar, and business proof must match.
- Use correct HSN/SAC codes based on goods/services.
- Always verify email/mobile details.
- Keep DSC or Aadhaar OTP ready for final submission.
GSTIN Structure
The GSTIN (Goods and Services Tax Identification Number) is a 15-digit number:
- First 2 digits: State code
- Next 10 digits: PAN of the business
- 13th digit: Entity number under a PAN
- 14th digit: Blank
- 15th digit: Check code
Consequences of Non-Registration
Operating a business without GST registration when required is a violation of law:
- Penalty of ₹10,000 or 10% of tax due (whichever is higher).
- For intentional fraud: 100% of tax due.
- Can lead to loss of credibility, cancellation of business license, and restrictions on e-commerce platforms.
Latest Updates & Amendments for FY 2025–26
- Aadhaar authentication mandatory for new registrations.
- Biometric-based verification in select states.
- Introduction of real-time PAN validation.
- Increased scrutiny on high-risk applications.
Final Words
GST registration ensures lawful business operations, tax credit claims, and business growth. Nitin Bhatia & Associates can assist with hassle-free GST registration, documentation, and ongoing compliance. Trust our expert guidance to navigate the GST framework effectively.
