Goods and Services Tax (GST) is mandatory for businesses in India that exceed the prescribed turnover limit. Whether you are starting a new business or need to register for GST, this guide will help you understand the GST Registration Process in 2025.

What is GST Registration?

GST Registration is the process by which a business gets registered under the GST Act. After registration, businesses receive a unique GST Identification Number (GSTIN), which allows them to collect and remit GST to the government.

Who Needs GST Registration in 2025?

• Businesses engaged in supply of goods with an annual turnover exceeding Rs. 40 lakh (Rs. 20 lakh for special category states)
• Businesses engaged in supply of services with an annual turnover exceeding Rs. 20 lakh (Rs. 10 lakh for special category states)
• E-commerce sellers
• Inter-state suppliers
• Casual taxable persons and non-resident taxable persons

Benefits of GST Registration

• Legal recognition for businesses
• Ability to collect GST from customers
• Input tax credit benefits
• Increased business credibility

Documents Required for GST Registration in 2025

Before starting the GST Registration Process in 2025, ensure you have the following documents:

For Individuals and Sole Proprietors:

• PAN card and Aadhaar card
• Passport-size photograph
• Address proof of business premises
• Rent or lease agreement with NOC (in case of rented premises)
• Bank account details (Cancelled cheque or bank statement)

For Partnership Firms and LLPs:

• PAN card of firm
• Partnership deed
• Address proof of business premises
• Rent or lease agreement with NOC (in case of rented premises)
• Bank account details (Cancelled cheque or bank statement)
• PAN and Aadhaar card and photograph of all partners
• Authorized signatory details
• Proof of appointment of authorized signatory.

For Private Limited Companies:

• Certificate of Incorporation
• PAN card of the company
• Memorandum and Articles of Association
• Address proof of business premises
• Rent or lease agreement with NOC (in case of rented premises)
• Authorized signatory details
• Board resolution appointing authorized signatory.
• Digital Signature Certificate of authorized signatory
• PAN and Aadhaar cards and photograph of all directors.
• Bank account details (Cancelled cheque or bank statement)

Step-by-Step GST Registration Process in 2025

Follow these simple steps to register for GST online:

Step 1: Visit the GST Portal

Go to the official GST portal at https://www.gst.gov.in/.

Step 2: Click on ‘New Registration’

On the homepage, click on ‘Services’ > ‘Registration’ > ‘New Registration.’

Step 3: Fill in the Application Form

Enter the required details such as PAN, mobile number, and email. You will receive an OTP for verification.

Step 4: Upload Documents

Upload the required documents as per your business type.

Step 5: Submit the Application

Once all details are filled, submit the application. You will receive an Application Reference Number (ARN) for tracking.

Step 6: Verification and Approval

The GST officer will verify the details. If everything is correct, you will receive your GSTIN within 3-7 working days.

Common Issues during GST Registration and Solutions

1. OTP Not Received

Check spam/junk folders or use an alternate mobile number.

2. Application Rejected Due to Incorrect Documents

Ensure documents are clear, valid, and correctly uploaded.

3. GSTIN Not Received After Approval

Log in to the GST portal and check the application status.

4. ARN Number not received

If you had submitted all the information correctly and you have not received any ARN number, contact the GST Helpdesk at 1800-1200-232

5. Incorrect or Incomplete Documentation

This often happens because people do not fully understand which documents are needed, or sometimes they just make mistakes when filling out the application. In order to solve this problem, we suggest you to get in touch with an experts like Taxunplug.

FAQs (GST Registration Process in India)

1. Is GST registration free?

Yes, GST registration is free of cost on the government portal.

2. How long does it take to get GST registration?

It usually takes 3-7 working days if all documents are correct.

3. What happens if I don’t register for GST?

You may face penalties and legal action if your business exceeds the turnover limit but remains unregistered.

4. Can I cancel my GST registration?

Yes, businesses that no longer need GST can apply for cancellation on the GST portal.

5. Do freelancers need GST registration?

Yes, if their annual income exceeds Rs. 20 lakh (Rs. 10 lakh in special category states).

GST Registration Process in India

Taxunplug offers a streamlined solution for businesses looking to register for GST with ease. Our expert team ensures all your documents are in order and helps you navigate the registration process smoothly, saving you time and effort. With Taxunplug, you can focus on growing your business while we take care of the compliance details.

The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.

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The GST Council in 55^th meeting has proposed a significant amendment to the Central Goods and Services Tax (CGST) Act that nullifies a landmark Supreme Court ruling in favour of Safari Retreats to restrict input tax credit on construction services. This ruling had allowed businesses to claim input tax credits (ITC) on construction costs for rental properties, which the Council now seeks to reverse with a retrospective amendment effective from July 1, 2017. The proposed change has raised concerns across the construction and leasing industries and has sparked debates about its legal and economic implications.

The Retrospective Amendment: Key Details

The amendment seeks to replace the phrase “plant or machinery” with “plant and machinery” throughout the CGST Act. The government has characterized this move as a correction of a “drafting error” to align with the language used elsewhere in the tax code. However, this change effectively nullifies the Supreme Court’s interpretation in the Safari Retreats case, which had expanded the definition of “plant or machinery” to include buildings constructed for specific business needs, provided they met a functionality test.

The Supreme Court’s Landmark Ruling (chief commissioner of central goods and service tax & Ors. Versus M/s. Safari Retreats Private Ltd. & Ors.)

In October, the Supreme Court’s judgment in favour of Safari Retreats had been hailed as a game-changer for the commercial real estate and leasing sectors. By allowing ITC claims on buildings that met the functionality test, the court’s decision significantly reduced costs for businesses investing in construction for leasing purposes. The ruling was celebrated for fostering investment like shopping malls and aligning with the GST’s fundamental objective of minimizing the cascading effect of taxation.

https://api.sci.gov.in/supremecourt/2019/37367/37367_2019_6_1501_56233_Judgement_03-Oct-2024.pdf

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The 53^rd GST Council Meeting, chaired by Finance Minister Smt. Nirmala Sitharaman, made several recommendations aimed at simplifying GST regulations, reducing taxpayer burden, and streamlining trade and compliance processes.

• Waiver of Interest and Penalties: The GST Council has decided to exempt interest and penalties for demand notices issued under section 73 of CGST for the fiscal years 2017-18, 2018-19, and 2019-20, provided that the cases do not involve fraud, suppression, or misstatement. This exemption applies to situations where the taxpayer settles the full amount mentioned in the notice by March 31, 2025.

• Relaxation in condition of section 16(4) of the CGST Act: The time limit for claiming Input Tax Credit (ITC) on invoices or debit notes in any GSTR-3B filed up to November 30, 2021 (for the fiscal years 2017-18, 2018-19, 2019-20, and 2020-21), may now be deemed to be November 30, 2021.

Additionally, provisions of section 16(4) will be relaxed for returns filed by the registered person within thirty days of the order of revocation, covering the period from the date of cancellation of registration to the date of revocation of cancellation of registration.

• Reduction of Government Litigation by Fixing monetary limits for filing appeals under GST: The department is advised to adhere to the prescribed monetary thresholds when submitting appeals before the respective legal bodies. These thresholds are set at Rs.20 lakh for the GST Appellate Tribunal, Rs.1 crore for the High Court, and Rs.2 crore for the Supreme Court.

• Amendment in Section 107 and Section 112 of CGST Act for reducing the amount of pre-deposit: The pre-deposit limit for filing an appeal before appellate authorities will be decreased from Rs.25 crore under CGST and SGST each to Rs.20 crore for each. Additionally, the pre-deposit amount for appealing before the GST Appellate Tribunal has been reduced from 20% with a maximum of Rs.50 crores under CGST and SGST each to 10% with a maximum of Rs.20 crores under CGST and SGST each.

• Tax Rate Changes: Various goods and services see tax rate changes, including a uniform 5% IGST rate on aircraft parts and a 12% GST rate on milk cans and solar cookers.

• Exemptions: To grant an exemption for the services offered by Indian Railways to the public, such as the sale of platform tickets, provision of retiring rooms/waiting rooms, cloak room services, and battery-operated car services, as well as to exempt the Intra-Railway transactions, the regularization of the issue from 20.10.2023 until the issuance of the exemption notification will be implemented.

• Rolling out of bio-metric based Aadhaar authentication on All-India basis: Biometric based Aadhaar authentication conducted at the GST Suvidha Kendra will be rolled out for GST registration on all-India basis in a phased manner.

• Sunset Clause to amend Sections 109 & 171: A sunset clause will be introduced for unresolved anti-profiteering cases, and the hearing panel will be relocated from CCI to the principal bench of GSTAT. The GST Council has also proposed a deadline of 1st April 2025 for the submission of new applications concerning anti-profiteering.

• Compensation Cess Exemption: GST Council recommends exemption from Compensation Cess leviable on the imports in SEZ, by SEZ Unit/developer for authorized operations from 1st July 2017.

• Reduction in rate of TCS to be collected by the ECOs: Earlier, E-Commerce Operators (ECOs) were required to gather Tax Collected at Source (TCS) at a rate of 1% (0.5% for both CGST and SGST/1% for IGST) on net taxable supplies as per Section 52(1) of the CGST Act.

It is now recommended to reduce this to 0.5% (0.25% for CGST and 0.25% for SGST/UTGST/0.5% for IGST).

• Time limit for filing appeals in GST Appellate Tribunal: The GST Council has proposed an amendment to Section 112, allowing a 3-month window for filing appeals before the GST Appellate Tribunal. The commencement date for this provision is expected to be announced by the Government, with a high probability of being revealed by August 5, 2024, which is the deadline.

• Change in due date for filing of return in Form GSTR-4: The deadline for filing GSTR-4 by composition taxable persons has been extended from the current date of April 30th to June 30th, 2024, starting from the financial year 2024-25.

• Amendment of Rule 88B of CGST Rules, 2017: The GST Council has proposed waiving off interest charges on the funds available in the electronic cash ledger on the due date for filing GSTR-3B, which are utilized during the filing process of the return in case of late filing of GSTR-3B.

• Insertion of Section 11A: The new provision allows regularization of non-levy or short levy of GST, where tax was being underpaid or unpaid due to common trade practices.

• Refund of additional IGST paid on account of upward revision in the price of goods subsequent to export: A mechanism is being implemented to facilitate the refund process for taxpayers who have paid extra IGST as a result of a price increase in exported goods, allowing them to claim refunds for the additional amount paid.

• Valuation of Import Services: The Council has clarified that if a foreign affiliate provides services to a related domestic entity that is eligible for full input tax credit, the value of the services declared in the invoice can be considered open market value under the second proviso to rule 28(1) of the CGST Rules. If the invoice is not issued, the value of the services may be declared as Nil and may be deemed as open market value under the second proviso to rule 28(1) of the CGST Rules.

• ITC on Ducts and Manholes: The Council recommended to clarify that input tax credit is not restricted in respect of ducts and manhole used in network of optical fiber cables (OFCs), under clause (c) or under clause (d) of sub-section (5) of section 17 of CGST Act.

• Valuation of Corporate Guarantees: GST Council recommended amendment of rule 28(2) of CGST Rules retrospectively with effect from 26.10.2023 and issuance of a circular to clarify various issues regarding valuation of services of providing corporate guarantees between related parties. It is inter alia clarified that valuation under rule 28(2) of CGST Rules would not be applicable in case of export of such services and where the recipient is eligible for full input tax credit.

• RCM Invoicing: The Council recommended to clarify that in cases of supplies received from unregistered suppliers, where tax has to be paid by the recipient under reverse charge mechanism (RCM) and invoice is to be issued by the recipient only, the relevant financial year for calculation of time limit for availment of input tax credit under the provisions of section 16(4) of CGST Act is the financial year in which the invoice has been issued by the recipient.

• New form GSTR-1A: The implementation of a new form GSTR-1A, which enables taxpayers to include or modify details of GSTR-1 for the current tax period or IFF for the first and second month of the quarter, has been approved by the GST Council. This functionality is particularly useful for rectifying any additions/omissions made before filing GSTR-3B.

• Annual Return turnover limit: Taxpayers with an aggregate annual turnover of up to Rs.2 crore will be exempted from filing the annual return in GSTR-9/9A for FY 2023-24.

• Section 122(1B) to be amended: The amendment will take effect retrospectively from October 1, 2023, to make it clear that the penal provision applies exclusively to ECOs obligated to collect TCS under section 52, and not to other ECOs.

• Pre-deposit amount paid through DRC-03 can be settled against demand: A circular will be issued to establish a procedure for adjustment of an amount paid in respect of a demand through Form GST DRC-03 against the amount to be paid as pre-deposit for filing appeal.

• Amendments in Section 73 and 74: Both provisions will now have a uniform time limit for issuing demand notices and orders, regardless of whether the cases are classified as fraud or non-fraud. Taxpayers will also have an extended period of 60 days, instead of the previous 30 days, to claim the benefit of reduced penalty by paying the tax demanded along with interest.

• Restriction on IGST Refund: The Council, vide amendments in section 16 of IGST Act and section 54 of CGST Act, recommended that the refund of IGST will not be granted in cases where export duty is payable. This rule is applicable to both exports and supplies made to SEZ unit/developer, regardless of whether tax is paid or not.

• Reporting requirement in GSTR-1: The reporting threshold for interstate supplies made to consumers (B2C) will be lowered from Rs.2.5 lakh to Rs.1 lakh in Table 5 of GSTR-1.

• Mandatory filing of GSTR 7: It is now compulsory to file GSTR-7 even in cases where no TDS has been deducted, with a requirement to report invoices individually, and no penalty will be imposed for non-filing when there are no transactions to report.

To download the official press release, click here.

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