In India, the Goods and Services Tax (GST) system was introduced to simplify the complex indirect tax structure and create a unified market across the country. Since its implementation in July 2017, GST has become mandatory for most businesses. If you’re planning to start a business or already running one, understanding the GST registration process and its related costs is crucial.
Many entrepreneurs and small business owners often wonder: How much does GST registration cost? This article will provide a detailed overview of GST registration fees, where to apply, the benefits, the registration steps, types of GST, and common FAQs.
Where to Apply for GST Registration?
You can apply for GST registration through:
- Official GST Portal: https://www.gst.gov.in
- GST Seva Kendras: Set up by the government to help people with offline registration.
- Authorized Tax Consultants or CA firms: These professionals help manage the registration process and charge a service fee.
The GST registration is a digital process, and the portal is user-friendly for most users. However, those unfamiliar with compliance processes often seek professional help.
Is GST Registration Free?
Yes, GST registration is completely free when done through the official government portal. There are no government fees for GST registration, regardless of the type of business or turnover.
However, if you take help from:
- Chartered Accountants (CA)
- Tax Consultants
- Online legal service providers
They may charge a professional fee, which typically ranges from ₹500 to ₹2,500 depending on the complexity of the business and services offered.
Advantages of GST Registration
Getting your business GST registered has several benefits:
1. Legal Recognition
You gain a legal identity as a registered business, which builds customer trust.
2. Input Tax Credit
You can claim input tax credit on purchases and reduce your overall tax liability.
3. Expansion Opportunities
GST registration is mandatory for selling on e-commerce platforms like Amazon, Flipkart, etc.
4. Competitive Advantage
Being a registered entity gives your business more credibility when dealing with clients and vendors.
5. Avoid Penalties
If your turnover crosses the threshold limit and you’re not registered, you may face heavy penalties.
Who Needs to Register for GST?
You must register for GST if:
- Your business turnover exceeds:
- ₹40 lakhs for goods (₹20 lakhs in special category states)
- ₹20 lakhs for services (₹10 lakhs in special category states)
- You operate in interstate trade
- You sell products online via marketplaces
- You are involved in import/export or e-commerce
- You are a non-resident taxable person
Voluntary registration is also allowed even if your turnover is below the threshold.
Steps for GST Registration
Here is a step-by-step guide on how to register for GST:
Step 1: Visit the Official Portal
Go to https://www.gst.gov.in
Step 2: Fill in Part A of Form GST REG-01
- PAN card
- Mobile number
- Email address
You will receive OTPs for mobile and email verification.
Step 3: Get Temporary Reference Number (TRN)
After OTP verification, you’ll receive a TRN to proceed with Part B.
Step 4: Fill in Part B of Form GST REG-01
Submit the following documents:
- PAN card
- Aadhaar card
- Passport-size photo
- Business address proof
- Bank account details
- Partnership deed (if applicable)
- Incorporation certificate (if applicable)
Step 5: Verification and ARN Generation
After successful submission, an Application Reference Number (ARN) is generated.
Step 6: Receive GSTIN
After document verification by a GST officer (within 7 working days), you’ll receive your GSTIN (Goods and Services Tax Identification Number).
Types of GST
GST is classified into four major types:
1. CGST (Central GST)
Levied by the Central Government on intra-state supplies.
2. SGST (State GST)
Levied by the State Government on intra-state supplies.
3. IGST (Integrated GST)
Applicable on inter-state and import/export transactions, collected by the Central Government.
4. UTGST (Union Territory GST)
Applicable in union territories like Delhi, Chandigarh, Andaman & Nicobar Islands.
Understanding which type applies to your business helps you in correct filing and availing the right tax credits.
Documents Required for GST Registration
Here’s a quick checklist of documents:
- PAN card of the applicant/business
- Aadhaar card
- Photograph of the proprietor/partners/directors
- Proof of business address (utility bill, rent agreement, etc.)
- Bank account statement or canceled cheque
- Business registration document (partnership deed, incorporation certificate)
Depending on the type of business entity (sole proprietorship, partnership, LLP, company), specific additional documents may be required.
Penalty for Not Registering Under GST
If your business is eligible for GST registration and you fail to register, the penalty is:
- 10% of the tax due or ₹10,000, whichever is higher
- In case of deliberate fraud, the penalty may go up to 100% of the tax due
Hence, timely registration not only avoids penalties but also saves legal troubles in the future.
Cost Breakdown of GST Registration (Summary)
Type | Cost |
Government GST Registration | ₹0 (Free) |
Professional Service Fees | ₹500 – ₹2,500 |
Additional Services (like DSC, invoicing software, etc.) | Optional costs may apply |
Conclusion
GST registration is a must for businesses crossing the specified turnover limits or involved in interstate commerce. While the government does not charge any fee for registration, professional service providers may charge a nominal amount for handling the process smoothly.
It is advisable to assess your business needs and turnover to determine whether you should register voluntarily or mandatorily. With a valid GSTIN, you gain tax benefits, avoid penalties, and enhance your brand credibility in the marketplace.
FAQs
Q1: What is the official GST registration fee?
Ans: The official GST registration is completely free of cost on the GST portal.
Q2: How long does it take to get a GST number?
Ans: Normally, it takes 7 working days after application submission, unless additional verification is needed.
Q3: Can I register for GST myself?
Ans: Yes, the process is online and user-friendly. You can register through the official portal at www.gst.gov.in.
Q4: Is GST registration compulsory for freelancers?
Ans: If your income exceeds ₹20 lakhs annually (₹10 lakhs in some states), GST registration becomes mandatory.
Q5: What if I don’t register for GST?
Ans: You may be penalized 10% of the tax amount due (minimum ₹10,000) or even more if it’s a deliberate attempt to avoid tax.
Q6: Is GST registration different for online sellers?
Ans: Yes. Selling through online platforms like Amazon or Flipkart requires mandatory GST registration, regardless of turnover.