Registration under GST
GST registration is the legal process through which a business becomes recognized as a supplier under the Goods and Services Tax regime. It is mandatory for all entities whose aggregate turnover crosses the specified threshold or who fall under special categories such as inter-state suppliers, e-commerce operators, or persons required to deduct/collect tax. Registration is not merely an administrative formality—it determines tax compliance, ITC eligibility, audit requirements, and legal identity under GST law. The statutory framework is primarily governed by Sections 22 to 30 of the CGST Act, 2017, supported by the CGST Rules, especially Rules 8 to 26 dealing with procedures, documents, and verification.
The Supreme Court has emphasized the importance of statutory compliance in taxation, holding in A.V. Fernandez v. State of Kerala that every taxable transaction must fall within the explicit authority of law. This principle also guides GST registration—no person can charge GST, claim input credit, or issue GST invoices without valid registration.
Persons Liable for GST Registration
Threshold-Based Registration
Section 22 mandates registration for suppliers whose aggregate turnover exceeds:
- ₹20 lakh (most states)
- ₹40 lakh (suppliers of goods in selected states)
- ₹10 lakh (special category states)
The term “aggregate turnover” includes taxable supplies, exempt supplies, exports, and interstate supplies but excludes taxes. Courts have generally interpreted turnover inclusively, as seen in CCE v. Kwality Ice Cream Co., where turnover was interpreted broadly for tax computations, reinforcing strict compliance.
Mandatory Registration (Irrespective of Turnover)
Section 24 lists cases where registration is compulsory even if turnover is below the threshold:
- Inter-state suppliers
- Casual taxable persons
- Non-resident taxable persons
- E-commerce operators
- Persons required to deduct TDS or TCS under GST
- Input Service Distributors
The GST structure ensures no significant supplier or digital intermediary escapes the tax net, reflecting the objective of comprehensive taxation.
Tip: If you supply even one inter-state invoice, GST registration becomes compulsory regardless of turnover.
Procedure for GST Registration
Step 1: Online Application (Part A – Rule 8)
Applicants begin on the GST portal by providing PAN, mobile number, and email. A Temporary Reference Number (TRN) is generated after validation. PAN is mandatory because GSTIN is linked to PAN, preventing duplicate registrations and ensuring accountability.
Step 2: Filing Complete Application (Part B – Rule 9)
Applicants upload required documents:
- PAN card
- Aadhaar
- Business address proof
- Bank details
- Photographs of promoters
- Incorporation documents (if a company/LLP)
The application is then verified using Aadhaar authentication. The Delhi High Court in Proex Fashion v. Commissioner of GST held that denial of registration based solely on technical lapses violates principles of natural justice, reinforcing the importance of fair verification procedures.
Step 3: Verification and Approval
The proper officer reviews the application and may seek clarifications. If satisfied, registration is granted within 7 working days. If additional documents are required, a notice is issued, and the applicant must respond within the stipulated time.
Step 4: Issue of GSTIN
Once approved, the taxpayer receives:
- GSTIN (15-digit identification number)
- Registration Certificate (Form GST REG-06)
This enables the taxpayer to begin issuing GST-compliant invoices, collecting tax, and claiming ITC.
Tip: Keep your digital documents ready—most delays occur due to mismatched address proofs and bank details.
Special Categories of Registrants
Casual Taxable Person (CTP)
A person who temporarily supplies goods/services in a taxable territory must register as CTP. They must pay advance tax equal to the estimated GST liability. This mechanism prevents tax loss from temporary business operations such as exhibitions.
Non-Resident Taxable Person (NRTP)
NRTPs supplying in India must obtain registration before making any taxable supply. The Supreme Court in Gannon Dunkerley & Co. v. State of Rajasthan held that even temporary or non-resident activities fall within the scope of taxable supplies when statutory provisions cover them.
Input Service Distributor (ISD)
An ISD distributes input tax credit among branches. Registration as ISD is distinct and must be separately applied for.
Tip: If you have multiple branches across states, each branch must obtain separate GST registration.
Voluntary Registration
Section 25 allows any person to voluntarily register even when not required. Benefits include:
- Eligibility to claim input tax credit
- Increased credibility with clients
- Legal authority to issue GST invoices
However, voluntarily registered persons must comply fully with GST obligations, including filing returns.
Cancellation of Registration
Cancellation by Taxpayer
A business may apply for cancellation under Section 29 if:
- It stops business
- Its structure changes (merger, closure)
- It is no longer liable to be registered
Cancellation by Officer
Registration may also be cancelled if the person:
- Fails to file returns for 6 months
- Issues invoices without supply
- Violates GST provisions
Courts insist on procedural fairness. In Aggarwal Dyeing and Printing Works v. State of Gujarat, the Gujarat High Court held that cancellation without proper notice violates natural justice.
Revocation of Cancellation
If registration is cancelled by the officer, the taxpayer may seek revocation within 30 days, provided pending returns are filed.
Tip: Always file NIL returns even if you have no business—non-filing leads to cancellation.
Importance of GST Registration
GST registration provides:
- Legal recognition as a supplier
- Access to input tax credit
- Authority to collect tax
- Eligibility to participate in interstate trade
- Compliance with e-commerce and digital platforms
In essence, registration under GST creates the legal identity necessary for participating in India’s unified tax system.
Conclusion
GST registration is the gateway to the entire GST compliance framework. It determines a business’s legal standing, tax responsibilities, rights to input tax credit, and participation in both domestic and inter-state supply chains. The statutory provisions ensure transparency and accountability, while judicial oversight guarantees fairness and adherence to constitutional principles. For law students, understanding GST registration is foundational to mastering GST law because it shapes every subsequent stage—assessment, input credit, compliance, audits, and appeals.