What is a GST Number?

GST number, also refer as a GSTIN (Goods and Services Tax Identification Number), is a unique 15-digit alphanumeric code assigned to every registered taxpayer under the GST regime. This number is state-specific and PAN-based, and it is used for collecting and paying GST, filing returns, and availing input tax credit.

Who Needs GST Registration?

As per the GST Act, GST registration is mandatory for:

• Businesses with an annual turnover which is exceeding the limit of ₹40 lakhs (₹20 lakhs for special category states)
• Service providers with turnover above ₹20 lakhs (₹10 lakhs for special states)
• E-commerce sellers and aggregators
• Inter-state suppliers
• Casual taxable persons and non-resident taxable persons
• Input service distributors and agents of suppliers
• Anyone who wants to claim input tax credit or issue a GST-compliant invoice

However, even if your turnover is below the prescribed threshold, you can voluntarily register for GST to enjoy its benefits.

Benefits of Getting a GST Number

Registering for GST offers numerous advantages for small business owners:

1. Legal Recognition: A GST number legally recognizes your business under Indian tax laws.
2. Input Tax Credit (ITC): You can claim ITC on your purchases, reducing your tax liability.
3. Easier Compliance: It simplifies tax filing under a unified tax structure.
4. Business Expansion: Helps in inter-state trade without restrictions.
5. Trust and Credibility: Improves business image among vendors, buyers and lenders and establish the transparency among them.

Step-by-Step Process to Get a GST Number in India

Here’s a detailed guide on how to register for GST online:

Step 1: Visit the GST Portal

Go to the official GST website: www.gst.gov.in

Step 2: Click on ‘New Registration’

Under the ‘Services’ tab, select ‘Registration’ and click on ‘New Registration’.

Step 3: Fill in the Details

You will be asked to enter the following information:

• Type of taxpayer (Regular, Casual, Non-resident, etc.)
• State and district.
• Legal name of the business which is mentioned (as per PAN)
• PAN number.
• Enter your Email Id, registered mobile number for the purpose of OTP verification.

Once entered, you’ll receive a Temporary Reference Number (TRN) via email/SMS.

Step 4: Login with TRN

Use the TRN to log in and complete Part B of the application.

Step 5: Submit Business Details

You need to submit the following information:

• Business name and address
• Details of partners/promoters
• Business constitution (sole proprietorship, partnership, etc.)
• Bank account details
• Authorized signatory information

Step 6: Upload Required Documents

You must upload scanned copies of:

• PAN Card of the business or proprietor
• Aadhaar Card
• Proof of business registration (if applicable)
• Address proof of the business premises (electricity bill, rent agreement)
• Bank account statement or cancelled cheque
• Photograph of proprietor/partners

Step 7: Verification and Submission

You can verify the application via:

• Electronic Verification Code (EVC) sent to your mobile/email, or
• Digital Signature Certificate (DSC), or
• Aadhaar e-verification (OTP-based)

Step 8: Get GST Number

After successful verification, you’ll receive your GSTIN within 3 to 7 working days via email and SMS. You can also easily download the GST registration certificate from the portal.

What to Do After Getting a GST Number?

1. Display GST Number

It is mandatory to display your GSTIN on the name board at your business premises and on all invoices you issue.

2. Start Charging GST

Once registered, you need to start charging GST on your goods/services as per applicable rates (5%, 12%, 18%, or 28%).

3. Maintain Proper Records

You must keep proper invoices, purchase bills, and digital records for future audits and return filing.

GST Return Filing: Your Responsibility After Registration

GST return filing is a crucial compliance requirement. Registered businesses must periodically file GST returns to report their sales, purchases, tax collected, and tax paid.

Types of GST Returns for Small Businesses

1. GSTR-1 – Details of outward supplies (monthly/quarterly)
2. GSTR-3B – Summary of sales, ITC claimed, and net tax payable (monthly)
3. GSTR-4 – For taxpayers under Composition Scheme (quarterly)
4. GSTR-9 – Annual return (for turnover above ₹2 crore)

Due Dates

• GSTR-1: 11th of the following month (monthly) or end of the next month (quarterly)
• GSTR-3B: 20th of the following month.
• GSTR-4: 18th of the month following the quarter.
• GSTR-9: 31st December of the following financial year.

Late Fees and Penalties

Failing to file GST returns on time attracts a late fee of ₹50 per day (₹20 for NIL return) and an interest of 18% per annum on outstanding tax.

Common Mistakes to Avoid During GST Registration

• Using an incorrect PAN or business name
• Choosing the wrong type of registration
• Not uploading all required documents
• Delaying Aadhaar verification
• Using incorrect bank details

Take time to double-check all information before submitting your application to avoid rejection or delays.

Composition Scheme for Small Businesses

If your turnover is below ₹1.5 crore, you can opt for the Composition Scheme, which allows you to pay tax at a flat rate with less compliance. However, under this scheme:

• You cannot claim input tax credit
• You cannot issue tax invoices
• You must mention “composition taxable person” on all bills

Conclusion

Getting a GST number for your small business in India is a straightforward online process that brings long-term benefits such as legal recognition, tax input credit, and better market reach. After successful GST registration, timely GST return filing becomes an ongoing responsibility. By staying compliant with GST norms and regulations, small business owners can focus more on the business growth while avoiding unnecessary legal penalties and other legal complexities.

If you’re just starting out or looking to expand your business, don’t delay for applying your GST registration. It’s your gateway to running a transparent, scalable, and competitive business in India’s fast-evolving economy.