GST Registration Types

1. Normal Taxpayer (GSTIN):
   • Regular GST registration (GSTIN) is the fundamental type of GST registration in India.
   • It applies to businesses with an annual aggregate turnover exceeding ₹20 lakh (or ₹40 lakh, depending on the supply and state/UT).
   • GSTIN is a unique 15-digit number provided by tax authorities to monitor tax payments and compliances.
2. Composition Scheme Registration:
   • Small businesses (with a turnover of ₹20 to 75 lakh) can benefit from the Composition scheme.
   • This option allows lower taxes and reduces the compliance burden.
   • Under this scheme, taxpayers pay GST at a fixed rate on their turnover.
3. Casual Taxable Person Registration:
   • Individuals who occasionally engage in taxable activities (e.g., exhibitions, trade fairs) can apply for casual taxable person registration.
   • It’s valid for a specific period and requires a temporary GSTIN.
4. Non-Resident Taxable Person Registration:
   • Non-resident individuals or foreign entities supplying goods/services in India need this registration.
   • It allows them to conduct business without a permanent establishment.
5. Input Service Distributor (ISD) Registration:
   • Entities that distribute input tax credit (ITC) to branches or units within the same organization apply for ISD registration.
   • They facilitate seamless ITC distribution.

Required Documents for GST Registration

The documents needed depend on the business’s constitution:

• Sole Proprietor / Individual:
  • PAN card of the owner
  • Aadhar card of the owner
  • Owner’s photograph (JPEG format, max size: 100 KB)
  • Bank account details
  • Address proof
• Partnership Firm / LLP:
  • PAN cards of all partners (including managing partner and authorized signatory)
  • Copy of partnership deed
  • Photographs of all partners and authorized signatories
  • Address proof of partners
  • Aadhar card of authorized signatory
  • Proof of appointment of authorized signatory
  • In the case of LLP, registration certificate or board resolution
  • Address proof of principal place of business
• HUF (Hindu Undivided Family):
  • PAN card of HUF
  • PAN card and Aadhar card of Karta (head of HUF)
  • Karta’s photograph (JPEG format, max size: 100 KB)
  • Bank account details
  • Address proof of principal place of business

Benefits of GST

1. Elimination of Cascading Tax Effect:
   • GST eliminates the ‘tax on tax’ effect, reducing the overall tax burden.
2. Higher Threshold for Registration:
   • The threshold for mandatory GST registration has increased to ₹20 lakh, benefiting small traders and service providers.
3. Composition Scheme for Small Businesses:
   • Small businesses can opt for the Composition scheme, simplifying tax and compliance.
4. Simple and Online Procedure:
   • GST processes, from registration to filing returns, are online and user-friendly.
5. Reduced Compliance Burden:
   • Fewer returns and compliances compared to the previous VAT and service tax systems.