GST Registration

How to Obtain GST Registration in Gujarat, India?

The Goods and Services Tax (GST) is a unified taxation system that applies to both goods and services across India. GST ensures a balanced revenue distribution between the Central and State Governments through a dual taxation structure.

The GST regime was introduced on July 1, 2017, as a comprehensive, multi-stage, destination-based tax levied on every value addition. It enhances transparency in indirect taxation, reduces inflationary effects, and eliminates tax cascading. Additionally, GST has significantly contributed to investment growth, the expansion of e-commerce, and the success of the ‘Make in India’ initiative.

Based on the principle of “One Nation, One Tax,” GST consists of different tax rate slabs ranging from 0% to 28%.

Despite its widespread implementation, many individuals and businesses are still unfamiliar with the GST framework. Therefore, professional assistance from Chartered Accountants (CAs) and GST consultants is often sought to facilitate registration and compliance.

Mandatory GST Registration in Gujarat

Under the GST Act, all businesses involved in the supply of goods or services must obtain GST registration. Entities that operate without GST registration are not permitted to collect GST from customers or claim an input tax credit (ITC) on taxes paid.

Since GST is a destination-based tax, it applies to all transactions involving the supply of goods and services for consideration. Hence, businesses must register to claim ITC and collect GST legally.

GST Turnover Limits for Registration

GST registration is compulsory for specific categories of taxpayers, irrespective of turnover. These include casual taxable persons, non-resident taxable persons, and businesses operating via e-commerce platforms.

A casual taxable person is anyone who occasionally supplies goods or services in a state or union territory where they do not have a fixed business location.

The turnover limits for GST registration in Gujarat are as follows:

For Goods Suppliers:

GST registration is mandatory for businesses engaged exclusively in the supply of goods if their annual turnover exceeds Rs. 40 lakhs.
Businesses must not be engaged in service supply, intra-state supply in certain special category states, or the sale of restricted items like tobacco, pan masala, and ice cream.
If the above conditions are not met, the registration threshold is reduced to Rs. 20 lakhs.
For businesses in special category states, the threshold is Rs. 10 lakhs.

For Service Providers:

The GST registration threshold for service providers remains unchanged at Rs. 20 lakhs in normal category states and Rs. 10 lakhs in special category states.

Special Category States Under GST

The special category states where the GST registration threshold is lower include:

Arunachal Pradesh
Assam
Jammu & Kashmir
Manipur
Meghalaya
Mizoram
Nagaland
Sikkim
Tripura
Himachal Pradesh
Uttarakhand

The threshold limits were revised in the 32nd GST Council Meeting to accommodate small businesses and simplify compliance.

Understanding Aggregate Turnover in GST

The aggregate turnover is calculated as follows:

Aggregate Turnover = (Taxable Supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Inward Supplies + Reverse Charge Supplies + Non-Taxable Supplies)

Since GST registration is PAN-based, all business locations under the same PAN must be included in the turnover calculation.

Voluntary GST Registration in Gujarat

Businesses that do not exceed the turnover limits can still apply for GST registration voluntarily. Many enterprises opt for voluntary registration to:

Enhance business credibility
Meet the requirements of B2B transactions
Claim ITC benefits

GST consultants in Gujarat can advise businesses on whether voluntary registration would be beneficial based on their operations and business needs.

Documents Required for GST Registration in Gujarat

To register for GST, applicants must provide the following documents:

1. PAN Card of Business or Applicant:

GST registration is linked to the PAN of the business entity, making it a mandatory document.

2. Identity and Address Proof of Promoters:

Acceptable documents include:

Passport
Voter ID
PAN Card
Aadhar Card
Driving License

The following individuals must provide identity and address proof:

Proprietors (for sole proprietorships)
Managing Directors and Directors (for companies)
Karta (for HUFs)
Managing Trustees (for trusts)
Partners (for partnership firms or LLPs)
Authorized persons (for statutory bodies, local authorities, and other entities)

3. Business Registration Document:

Entities must submit proof of business registration. However, sole proprietorships do not require separate registration proof.

4. Address Proof for Business Premises:

Different types of address proof are required based on ownership status:

Owned Premises: Latest property tax receipt, municipal khata, or electricity bill.
Rented/Leased Premises: Rental agreement along with ownership proof of the lessor.
SEZ Units: Relevant government-issued documents.
Other Cases: Consent letter from the premises owner, along with ownership proof.

5. Proof of Bank Account:

Applicants must provide any of the following:

First page of the passbook
Bank statement
Cancelled cheque containing the business name, account number, IFSC, and MICR codes