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How is GST registration done for small businesses, what documents required?

In this blog we are explain How is GST registration done for small business, what documents required?

How is GST registration done for small business?

If you do business without registration, there is a possibility of getting into trouble. GST officers can catch you and question you. This does not mean that it is mandatory for anyone running a small street shop or doing business to get GST registration done. For those whose annual turnover is more than Rs 40 lakh, it is necessary to get GSTIN after getting GST registration. In some states this turnover limit is more than Rs 20 lakh. Therefore, if you come under this turnover limit, you will have to get GST registration.

You can also do GST registration yourself and this work is completely online. For this you will have to go to https://www.gst.gov.in/ website. If you click on https://www.gst.gov.in/help/enrollmentwithgst on the homepage of this website, you will get complete information about registration. From here you will be able to easily register for your business. If the turnover of the manufacturing sector is more than Rs 40 lakh then registration is necessary. The turnover for the service sector is fixed at Rs 20 lakh.

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Documents required for registration

  • Passport size photographs of the owner(s)
  • company pan card
  • Identity Proof (Aadhar Card, Passport, or Driving License)
  • Association Certificate for LLP, OPC and Private Limited Companies
  • Bank details 
  • Partnership deed if it is a partnership firm

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How to register small business?

If you run a small business and have the turnover mentioned above, then it will be necessary for you to get GST registration done. For this, keep all the documents mentioned above with you and register online. For this, you go to the GST portal https://www.gst.gov.in/ and follow the steps mentioned there. Here first of all you have to register yourself. After that, you will have to enter your personal information such as business details, HSN code or SAC along with information about goods and services, bank details.

If the information given by you is correct and there is no flaw in it, then you will get the GST number within some time. This number will be your GST registration number. You often see GSTIN written on shopkeepers' boards or bills.

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Why is GST registration necessary?

GST has replaced all the earlier taxes. Earlier, different types of taxes were levied which have been subsumed in GST. If your annual turnover is more than Rs 40 lakh, in some cases Rs 20 lakh, then you are a taxpayer in the eyes of GST. If you do business without registration then it will fall under the category of crime. If you are caught, you may have to pay a heavy fine.

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Updated on: 27 Mar, 2024 | 7 min read

Sarthak Palta