GST Registration for New Companies in India: When, Why & How to Register

Do All New Companies Need GST Registration?

No, GST registration is not automatically mandatory for all newly registered companies. However, understanding when it becomes mandatory is crucial for compliance and avoiding penalties.

GST Registration is Mandatory If:

1. Annual turnover exceeds Rs 40 lakh (Rs 20 lakh for service providers, Rs 10 lakh for special category states)
2. Inter-state supply of goods or services (even if below threshold)
3. E-commerce operators or sellers through e-commerce platforms
4. Casual taxable persons making temporary supplies in a different state
5. Input service distributors receiving invoices for services used by branches
6. Voluntary registration - you can register even below the threshold

Why Register Even If Not Mandatory?

• •Input Tax Credit (ITC): Claim GST paid on purchases against GST collected on sales
• •Business Credibility: B2B clients prefer GST-registered vendors
• •Interstate Operations: Mandatory for selling across state borders
• •E-commerce: Required for selling on Amazon, Flipkart, Meesho, etc.
• •Government Tenders: Most tenders require GST registration

GST Registration Process

Step 1: Visit the GST Portal

Go to gst.gov.in and click on "New Registration" under the Services tab.

Step 2: Fill Part A

• •Select "Taxpayer" as the type
• •Enter state, district, business name, PAN, email, and mobile number
• •Verify with OTP

Step 3: Fill Part B (TRN Generated)

After verification, you receive a Temporary Reference Number (TRN). Use this to complete Part B:

Business Details:

• •Legal name and trade name
• •Constitution of business (Private Limited Company, LLP, etc.)
• •Date of commencement
• •State jurisdiction

Promoter/Partner Details:

• •Name, PAN, Aadhaar, mobile, email
• •Photograph
• •Residential address

Authorized Signatory:

• •Details of the person authorized to sign GST returns

Principal Place of Business:

• •Address with proof (rent agreement + utility bill)

Additional Places of Business:

• •Branch offices, warehouses, godowns

Goods and Services:

• •HSN codes for goods or SAC codes for services
• •Nature of business activity

Bank Account Details:

• •At least one active bank account in the company name

Step 4: Upload Documents

• •PAN of the company
• •Certificate of Incorporation
• •Address proof for principal place of business
• •Bank account statement or cancelled cheque
• •Authorization letter / Board Resolution
• •Photograph of authorized signatory
• •Digital signature of authorized signatory

Step 5: Submit and Verify

Submit the application with DSC or EVC verification. The application is reviewed by the GST officer.

Step 6: Receive GSTIN

If approved, you receive your 15-digit GSTIN (GST Identification Number) within 3-7 working days.

GST Compliance Calendar for New Companies

QRMP Scheme (for turnover up to Rs 5 crore)

Small businesses can opt for quarterly filing instead of monthly:

• •GSTR-1: Quarterly filing
• •GSTR-3B: Quarterly filing
• •IFF (Invoice Furnishing Facility): Optional monthly for B2B invoices

Common GST Registration Mistakes

1. Wrong business constitution - Ensure you select "Private Limited Company" not "Proprietorship"
2. Mismatched address - The address on rent agreement must match the utility bill
3. Bank account not in company name - Personal bank accounts are not accepted
4. Missing board resolution - Required for companies to authorize the signatory
5. Incorrect HSN/SAC codes - Use the correct codes for your products/services

GST Composition Scheme

If your turnover is below Rs 1.5 crore (Rs 75 lakh for special category states), you can opt for the Composition Scheme:

• •Tax Rate: 1% for manufacturers, 5% for restaurants, 6% for service providers
• •Simplified Filing: Only quarterly returns (CMP-08) and annual return (GSTR-4)
• •Limitation: Cannot claim Input Tax Credit or collect GST from customers

Note: The Composition Scheme is not available for interstate suppliers or e-commerce sellers.

How Setup India Helps with GST Registration

GST registration is included free in our Enterprise Plan (Rs 7,999) for company registration. For existing companies, we offer GST registration as a standalone service.

• •Expert CA assistance for accurate filing
• •Correct HSN/SAC code identification
• •Document preparation and verification
• •Post-registration compliance guidance

Register for GST with Setup India or call our CA team for a free consultation.