Can GST registration unlock ?2-5 lakh input tax credit annually while enabling Amazon, Flipkart listing for your business? Does missing monthly filing attract ?200/day penalty (?100 CGST + ?100 SGST) plus blocked credit claims costing lakhs?

What Is GST Registration & Filing & Why It Matters

GST (Goods and Services Tax) registration is mandatory business compliance under CGST Act 2017, administered by GST Council. Businesses with turnover exceeding ?40 lakh (goods) or ?20 lakh (services) must register on GST portal obtaining unique GSTIN (15-digit identification number).

Filing involves monthly/quarterly return submission—GSTR-1 (sales), GSTR-3B (summary with tax payment)—enabling input tax credit claims where GST paid on purchases reduces output tax liability on sales, lowering effective tax burden 30-60%.

Eligibility & Who Should Apply

• Businesses crossing ?40 lakh goods or ?20 lakh services turnover (?20/10 lakh in special category states)
• E-commerce sellers (mandatory regardless of turnover for Amazon, Flipkart listing)
• Inter-state suppliers (selling outside home state)
• Casual taxable persons, reverse charge mechanism applicants
• Voluntary registration for input credit benefit even below thresholds

Key Benefits & Advantages

• Input tax credit: Claim GST paid on purchases reducing final tax liability—saves ?50,000-5 lakh annually
• E-commerce eligibility: Amazon, Flipkart mandate GST for seller onboarding enabling online sales channel
• Legal compliance: Avoid ?10,000 penalty for non-registration plus daily late fees
• B2B credibility: Registered vendors preferred by companies needing input credit
• Composition scheme access: Pay 1-6% flat tax (turnover <?1.5 crore) versus 5-28% regular rates

Documents Required

• PAN card (proprietor/partners/directors)
• Aadhaar card
• Business address proof (rent agreement, property tax receipt, electricity bill)
• Bank account statement/cancelled cheque
• Business registration certificate (if applicable)
• Digital signature (for companies/LLPs)
• Photographs of business premises

Step-by-Step Application Process

Register on GST portal using PAN and mobile number receiving OTP. Fill Part-A with basic business details, upload required documents. Submit application receiving ARN (Application Reference Number). Tax officer verifies documents within 3-7 working days. Upon approval, download GSTIN certificate enabling invoicing with GST.

For filing, prepare monthly GSTR-1 (by 11th next month) listing all sales invoices. File GSTR-3B (by 20th) summarizing sales, purchases, input credit, paying balance tax via online challan. Quarterly GSTR-1 allowed for turnover <?5 crore from January 2025.

Fees & Costs Breakdown

• GST registration: FREE (no government charges)
• Professional assistance: ?1,000-3,000 (registration), ?500-2,000/month (filing)
• Late filing penalty: ?50/day per return (CGST + SGST = ?100/day total), maximum ?5,000
• Non-filing penalty: ?200/day (no maximum cap), accumulates indefinitely

Compliance & Renewal Requirements

Monthly GSTR-3B by 20th, GSTR-1 by 11th (or quarterly for <?5 crore turnover). Annual GSTR-9 by December 31. Missing deadlines blocks input credit claims next month, attracts ?100-200/day late fees. E-invoicing mandatory for turnover >?5 crore from April 2025. GST registration remains valid perpetually unless cancelled—no annual renewal, only regular filing obligation.

Common Mistakes & How to Avoid Them

• Wrong HSN/SAC codes causing tax rate errors—verify product classification before invoicing
• Input credit mismatches between GSTR-2A and 3B triggering notices—reconcile supplier filings before claiming credit
• Missing GSTR-1 deadline blocking buyer's input credit damaging B2B relationships

Latest Updates (2025-26)

E-invoicing threshold reduced to ?5 crore from April 2025 (earlier ?10 crore). Quarterly GSTR-1 for <?5 crore turnover from January 2025 reducing compliance burden. Aadhaar authentication mandatory for new registrations from July 2024 preventing fake registrations.

Why Choose NiveshKaro

NiveshKaro's GST experts handle registration within 3-5 days, monthly filing with accurate input credit reconciliation, and e-invoicing compliance ensuring zero penalties and maximum legitimate credit claims. Visit NiveshKaro.com or call for hassle-free GST management today!

Disclaimer: NiveshKaro.com provides professional business services via certified CAs, CS, and legal experts—transparent pricing, no hidden costs. Regulations accurate as January 2026, subject to changes. Verify latest rules on official government portals. Visit niveshkaro.com today!