GST Registration for New Business - Requirements, Documents, Penalty

GST is a historic tax reform in Indian tax environment. It is an integrated tax levied in place of variety of taxes which were levied on Goods and Services before the GST regime. After this tax reform, business products and services have seen an overhaul in prices and margins. Due to fast transitions, many entrepreneurs find it difficult to cope up with the new tax reform that is GST (Goods and Services tax).

GST registration is required for business entities which have annual turnover exceeding 20 Lakhs. Without GST registration, the business can face legal hassles, tax penalties and prosecution. After registration, the applicant is issued a GSTIN which is used for GST tax filing and GST return filing. It is an unique Goods and Services Tax Identification Number.

GST Registration Duration

GST registration usually takes 2-5 working days. So, apply now to register your business under GST.

Who are Required to Apply for GST registration for New Business

1. Individuals who were registered under the pre GST taxes such as VAT, Excise, Custom etc.


2. Business entities with turnover exceeding 20 Lakhs


3. In case of north eastern states, J&K, Himanchal Pradesh and Uttrakhand, this limit is 10 lakh


4. Supplier or Distributors of a Brand registered under GST


5. E commerce sales business entity

Documents for GST Registration for New Business

For GST registration, individuals or business entity is required to file the application with the required documents. Here is the detail for required documents:

1. PAN card of the applicant entity


2. Address proof of applicant entity


3. Aadhar Card of the applicant


4. Business incorporation certificate


5. Digital Signature of Directors of company


6. Bank Account statement/ cancelled cheque


7. Letter of authorization by the authorized signatory

Penalty of not complying with GST Rules

1. If a business carries out operations without GST registration if it is required. Then the business will face severe penalties.


2. If an entity doesn’t pay tax on time, they can be penalized with 10% of tax amount (minimum 10,000 INR).


3. If the tax payment has been evaded continuously, the penalty can be raised by 100% of the tax.

This is the whole process for GST registration for new business in India.