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GST 2.0 Update
In September 2025, the GST Council introduced a simplified three-tier tax structure to make compliance easier and reduce costs for essentials. The new rates came into effect on 22 September 2025.
Key highlights:
Simplified tax slabs: Replaced old multiple rates with three tiers — 5% for essentials, 18% standard rate, and 40% for sin & luxury goods.
Lower rates on essentials: Goods like food items, medicines, soaps, and agricultural equipment now attract a reduced 5% GST.
Cheaper consumer durables & vehicles: GST on items like TVs, ACs, and small cars reduced from 28% to 18%. Luxury & sin goods taxed higher: Tobacco, aerated drinks, and high-end cars now attract 40% GST.
Insurance benefits: Health and life insurance premiums are now exempt from GST.
Simplified compliance: Easier invoicing and tax filing with fewer disputes due to the new slab structure.
Key administrative reforms: Launch of E-Way Bill 2.0 portal and GST Appellate Tribunal for faster dispute resolution.
Talk to an Expert at Zolvit for GST guidance and compliance support.
What is GST Registration?
GST registration is a crucial process for businesses in India to comply with the Goods and Services Tax framework. Businesses with an annual turnover exceeding ₹40 lakh (or ₹20 lakh in specific special category states) are required to register. It involves getting a 15-digit GSTIN from tax authorities, enabling businesses to legally collect and remit GST, claim input tax credit, and comply with GST laws.
Vakilsearch provides expert guidance and end-to-end support for quick and hassle-free online GST registration, ensuring full tax compliance. We offer a simplified process for new registrations, application status tracking, help in resolving queries from GST authorities, and file your GST application in just 2 business days.
Who Should Apply for GST Registration?
GST registration is essential for certain businesses and individuals to ensure compliance with the law. Here’s who should apply:
- Service Providers: Service providers offering services with a turnover exceeding ₹20 lakhs (₹10 lakhs in special category states) must register for GST. This includes freelancers, consultants, and agencies.
- Previously Registered Entities: Businesses registered under VAT, Service Tax, or other previous indirect tax regimes need to transition to GST registration.
- E-commerce Providers: Platforms or individuals selling goods or services online through marketplaces such as Amazon or Flipkart must register regardless of turnover.
- Inter-State Suppliers: Businesses supplying goods or services across state borders must mandatorily register for GST, irrespective of turnover.
- Casual Taxable Persons: Entities occasionally supplying goods or services in taxable areas without a fixed place of business must register under GST.
- Agents of Suppliers: Agents representing or supplying goods or services on behalf of others are required to register for GST.
- Input Service Distributors (ISD): Entities distributing GST input tax credit to other branches must register as ISD.
- Non-resident Taxable Persons: Foreign entities or individuals supplying goods or services in India need to register as non-resident taxable persons.
- Reverse Charge Mechanism (RCM) Entities: Businesses liable to pay GST under RCM, where the recipient pays tax instead of the supplier, must register.
- Specialized Categories: Entities like TDS deductors, TCS collectors, and Online Information and Database Access Retrieval (OIDAR) service providers require GST registration.
GST Registration Doesn’t Have to Be Complicated.
5,000+ growing businesses have chosen us for GST Registration. Let our experts handle the process accurately.
- CA-verified filing in just 2 business days
- Complete documentation and submission
- Real-time updates and expert support
Turnover Limits for GST Registration
GST registration is optional and can be obtained voluntarily by any person or entity, regardless of turnover. However, it becomes mandatory when aggregate turnover exceeds ₹20 lakh for service providers or ₹40 lakh for goods suppliers in most states. For special category states, the limit is ₹10 lakh. Aggregate turnover includes all taxable supplies, exempt supplies, exports, and inter-state supplies calculated on a PAN-India basis. Businesses that need to register can GST apply online through the official portal for a quick and convenient process. To clarify the GST registration thresholds based on sectors and states, here is an overview of the limits:
| Sector/Category | Threshold Limit for GST Registration |
|---|---|
| Manufacturing Sector | ₹40 lakhs or higher |
| Service Sector | ₹20 lakhs or higher |
| Special Category States | ₹10 lakhs or higher |
1. Special Category States include Assam, Arunachal Pradesh, Manipur, Jammu & Kashmir, Meghalaya, Nagaland, Mizoram, Sikkim, Tripura, and Uttarakhand.
2. All employees earning below this wage limit must be registered under the ESI scheme, which provides benefits like medical care and social security for both the employee and their family.
3. Any factory or establishment employing 10 or more employees is liable to register under ESIC and ensure that contributions are made for each employee’s welfare.
Mandatory GST Registration for Specific Businesses
Irrespective of the threshold limit GST registration is mandatory for the following:
- Individuals engaging in interstate taxable supply (with a threshold of ₹20 lakhs/₹10 lakhs applicable for interstate supply of taxable services, specified handicraft goods, and handmade goods)
- Casual taxable persons involved in taxable supply
- Individuals obligated to pay tax under reverse charge for received inward supplies
- Non-resident taxable persons engaged in taxable supply
- E-commerce entities (inclusive of every e-commerce operator and individuals supplying goods and/or services)
- Individuals required to deduct tax under Section 51
- Input service distributor
- Individuals making taxable supply of goods or services on behalf of other taxable persons, whether as an agent or otherwise
- Individuals required to pay tax under Section 9(5)
- Any other individuals or categories notified by the government.
Benefits of Registering for GST
Registration under GST is an important step towards a unified tax system in India. It offers many advantages to registered businesses. A taxpayer who registers under the GST Act of 2017 will receive the following benefits:
Legal Recognition
A firm can obtain legal recognition as a supplier of goods or services by registering for GST. This validates the company’s legal status as an official entity.
Input Tax Credit (ITC)
Businesses that are registered can deduct the GST they pay on purchases from the GST they collect on sales by claiming the Input Tax Credit. Consequently, the entire tax liability is decreased.
Simplified Process
The GST system has reduced the complexity and time needed for compliance by streamlining the process for submitting taxes and making payments. With the help of a single online platform, businesses can more effectively manage their tax obligations.
Composition Scheme
Composition Scheme Under GST for Small Businesses allows them to pay tax at a lower, fixed rate. This reduces their tax burden and compliance requirements, making it easier to manage their finances.
Higher Threshold for Online GST Registration
With a higher registration threshold, only businesses with an annual turnover above ₹40 lakh are required to register for GST. This excludes many small businesses from mandatory registration, easing their operational processes.
Eliminates the Cascading Effect of Taxes
GST eliminates the cascading effect of taxes by allowing input tax credit across the supply chain. This means that businesses can claim credit for the taxes paid on purchases, reducing the overall tax burden on end consumers.
Types of GST Registration
The Indian Goods and Services Tax (GST) system is structured around four types of GST to streamline taxation and ensure efficient revenue collection. These types are designed to cover various aspects of interstate and intrastate transactions and are as follows:
- Central Goods and Services Tax (CGST) applies to the supply of goods and services within a single state
- State Goods and Services Tax (SGST) is applicable to the sale of goods or services within the confines of a state
- Integrated Goods and Services Tax (IGST) is imposed on transactions involving goods and services across state boundaries
- Union Territory Goods and Services Tax (UTGST) is levied on the supply of goods and services in Union Territories such as Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is charged in conjunction with CGST.
Voluntary GST Registration for Businesses
Businesses generating a turnover of less than ₹20 lakhs can do the GST apply online voluntarily. By doing so, they can benefit from advantages such as availing input tax credits, conducting unrestricted inter-state sales, becoming eligible to list on e-commerce platforms, and gaining a competitive edge over non-GST-registered businesses. While this registration is not mandatory, it opens the door to enhanced growth opportunities and the potential for increased profitability.
Documents Required for GST Registration
The table below outlines the GST registration documents required for different types of entities. Ensuring that all necessary documents are submitted correctly can help speed up the registration process and avoid delays.
| Entity Type | Documents Required |
|---|---|
| Sole Proprietor / Individual | 1. PAN card of the proprietor 2. Aadhaar card 3. Bank account details (cancelled cheque/passbook copy) 4. Address proof (electricity bill/rent agreement) |
| LLP and Partnership Firm | 1. PAN card of the partnership/LLP 2. Partnership deed 3. PAN and Aadhaar cards of partners 4. Bank account details 5. Proof of business address |
| HUF (Hindu Undivided Family) | 1. PAN card of HUF 2. PAN and Aadhaar card of the Karta 3. Bank account details 4. Proof of principal place of business |
| Company (Public and Private) | 1. PAN card of the company 2. Incorporation certificate 3. PAN and Aadhaar cards of directors 4. Bank account details 5. Proof of business address 6. Authorization letter or board resolution |
| Foreign Companies | 1. Registration certificate issued by the foreign authority 2. Taxpayer identification number 3. Passport of the authorized signatory 4. Bank account in India 5. Business address proof in India |
Step-by-Step GST Registration Process
Here are 4 steps to complete your online GST registration process:
1. Get in touch with our experts
Book a slot with our GST experts and resolve all your queries.
2. Provide Business Information
To initiate the registration process, provide the required GST registration documents and fill in essential business details. These include the business name, SEZ unit (if applicable), principal place of business, additional business locations, mobile number, email address, state, and PAN card details.
Ensuring that all details are accurate and complete will help streamline the GST registration process and avoid delays.3. Filing for GST Registration
Our team will help you GST apply online by filing your GST registration application on the official portal. Once the application is submitted, you will receive an OTP for verification to proceed further.
4. Get your GSTIN
Our team will provide you with the Application Reference Number (ARN) (also called as temporary reference number) after successful verification. You can track application status using the number. GST registration certificate will be available on the official GST website after the process is completed.
All the documents should be submitted within the specified time frame and as per government guidelines to avoid delays. Although there are no GST registration fees, understanding any applicable security deposits for casual and non-resident taxable persons can help businesses plan their registration process efficiently. The GST certificate will be delivered directly by the Central government. Vakilsearch will initiate and guide you through the process.
To know the complete process, click here:
GST Registration Fees
Below are the details of GST registration fees:
| Type of Applicant | Registration Fee on Government Portal | Additional Requirement |
|---|---|---|
| Most Regular Businesses | ₹0 (No Fees) | None |
| Casual Taxable Persons | ₹0 (Registration) + ₹500–₹10,000 (Deposit) | Security deposit based on business type and state regulations |
| Non-Resident Taxable Persons | ₹0 (Registration) + ₹500–₹10,000 (Deposit) | Security deposit mandatory for temporary/foreign business setups |
Different Categories Which Requires GST Registration
Below listed categories are required to register GST
- Education and Learning
- Health and Wellness
- Electricity, Water and Local services
- Money and Taxes
- Jobs
- Justice, Law and Grievances
- Travel and Tourism
- Business and Self-employed
- Births, Deaths, Marriages and Child care
- Pension and Benefits
- Transport and Infrastructure
- Citizenship, Visas & Passports
- Agriculture, Rural and Environment
- Science, IT and Communications
- Youth, Sports and Culture
- Essential Government Services during Pandemic
- Art & Culture
- Communication
- Defence
- Home Affairs & Enforcement
GST Return Filing
GST return filing is a mandatory process where taxpayers report their sales, purchases, and tax liabilities to the government. In India, every GST-registered taxpayer must file returns regularly, even in the absence of transactions for a specific period. While GST registration itself is free, accurate and timely return filing is essential to avoid penalties. For seamless compliance, our experts are available to assist you throughout the GST return filing process.