Great 👍 Let’s prepare your full essay-style answer for:
“What is GST registration? Explain the step-by-step procedure for registration of a
business under GST.”
This will be in detailed, human-written style (based on V.K. Sareen & Ajay Sharma’s GST
book) so that it covers 5–6 handwritten pages.
Answer
Introduction
The Goods and Services Tax (GST) is a comprehensive, destination-based indirect tax
implemented in India on 1st July 2017. It subsumed many indirect taxes such as excise duty,
VAT, and service tax, bringing uniformity in the taxation system across the country.
Every business dealing in supply of goods or services above a certain turnover threshold is
required to obtain GST registration. It provides legal recognition to a business as a supplier of
goods or services and enables it to collect tax from customers and pass on input tax credit.
What is GST Registration?
GST registration means the process by which a business gets enrolled under the Goods and
Services Tax Act. Once registered, a business is given a 15-digit unique GST Identification
Number (GSTIN) which must be quoted in all tax-related documents like invoices, returns, and
e-way bills.
Who Needs GST Registration?
● Businesses with aggregate turnover exceeding ₹40 lakhs (₹20 lakhs in some special
category states).
● Service providers exceeding ₹20 lakhs (₹10 lakhs in special states).
● E-commerce operators, online sellers, and inter-state suppliers, regardless of turnover.
● Casual taxable persons and non-resident taxable persons.
● Agents or distributors supplying goods/services on behalf of others.
Importance of GST Registration
● Provides legal recognition and builds trust with customers.
● Mandatory for availing Input Tax Credit (ITC).
● Ensures compliance with law and avoids penalties.
● Expands business opportunities across India due to uniform taxation.
Step-by-Step Procedure for GST Registration
GST registration is done completely online through the GST portal (www.gst.gov.in). The
process is simple but requires accurate documentation.
Step 1: Visit the GST Portal
● The applicant must go to the official GST website: www.gst.gov.in.
● On the home page, click on the option “Services → Registration → New
Registration.”
Step 2: Part A – Fill Basic Details
The applicant has to enter preliminary details such as:
1. Legal Name of the Business (as per PAN records).
2. PAN (Permanent Account Number) of the business or proprietor.
3. Email Address and Mobile Number (OTP verification is required).
4. State/Union Territory and District where the business is located.
After submission, a Temporary Reference Number (TRN) is generated and sent to the
registered email and mobile.
Step 3: Part B – Fill Application Form
Using the TRN, the applicant logs in and fills the Part B of the application. This includes:
● Business details: Trade name, constitution (proprietorship, partnership, company).
● Principal place of business: Address proof, nature of business, ownership details.
● Additional places of business: Warehouses, branches, etc.
● Promoters/Partners: Personal details of owners/partners including PAN, Aadhaar,
photograph.
● Authorized Signatory: The person who will sign GST documents on behalf of the
business.
● Bank Account Details: Account number, IFSC, and supporting documents like canceled
cheque.
● Goods and Services Details: HSN (Harmonized System of Nomenclature) codes for
goods and SAC (Services Accounting Code) for services supplied.
Step 4: Upload Required Documents
The applicant must upload scanned copies of the following documents:
1. PAN card of the business or proprietor.
2. Aadhaar card of promoters/partners.
3. Proof of business registration (Partnership deed, Certificate of Incorporation).
4. Address proof of the business place (electricity bill, rent agreement, NOC from owner).
5. Bank account proof (cancelled cheque or bank statement).
6. Digital signature (DSC) for companies and LLPs.
Step 5: Verification of Application
● After filling all details, the applicant must verify the application using one of the
following methods:
○ Digital Signature Certificate (DSC)
○ Electronic Verification Code (EVC) (sent to registered mobile/email)
○ e-Signature using Aadhaar OTP
Step 6: Application Reference Number (ARN)
Once submitted, the application is assigned an Application Reference Number (ARN). This
can be used to track the status of registration online.
Step 7: Processing by GST Officer
● The GST officer examines the application and documents.
● If everything is in order, the officer approves the registration within 7 working days.
● If clarification is needed, the officer issues a notice, and the applicant must respond
within 7 days.
Step 8: GSTIN and Certificate of Registration
● On approval, the applicant receives a 15-digit GSTIN (Goods and Services Tax
Identification Number).
● The GSTIN is based on:
○ State code (first 2 digits),
○ PAN of the applicant (next 10 digits),
○ Entity code (13th digit),
○ Checksum (last 2 digits).
● A soft copy of the GST Registration Certificate is available for download from the
GST portal.
Conclusion
GST registration is an essential legal requirement for businesses operating in India. It gives
them recognition as legitimate suppliers, allows them to collect taxes from customers, and
enables them to claim input tax credit.
The online GST registration process is designed to be transparent, simple, and uniform
across the country. By eliminating unnecessary paperwork and bringing all steps to a digital
platform, GST has significantly reduced compliance costs and created a level playing field
for businesses.
Thus, GST registration is not only a compliance obligation but also a gateway to participate in
India’s unified tax regime of “One Nation, One Tax, One Market.”
👉 This content, when handwritten with headings, explanations, and examples, will easily cover
5–6 full pages.
Do you also want me to add a flowchart (Step 1 → Step 8 process) so your answer looks
more structured and scoring in exams?
