How to Add GST Number for Your Business

The Goods and Services Tax (GST) is a comprehensive consumption tax model implemented in many countries globally, though not in the United States. It functions as an indirect tax applied to most goods and services, integrating various prior indirect taxes into a single framework. This system aims to streamline taxation, reduce the cascading effect of taxes, and enhance tax compliance. Understanding how businesses register for a GST number is important for those operating or considering operations in jurisdictions where this tax applies.

Determining Your Obligation to Register

Businesses in a GST-implementing jurisdiction must assess their obligation to register. A fundamental concept is “taxable supply,” which refers to goods or services subject to GST. If a business makes taxable supplies, it generally needs to register once its annual turnover exceeds a specified threshold. These thresholds vary by country and sometimes by region or type of goods/services. For instance, some jurisdictions mandate registration if annual turnover for goods exceeds $48,000 to $60,000, while for services, the threshold might be lower, around $24,000 to $36,000.

Registration can be mandatory irrespective of the turnover threshold, often including businesses engaged in interstate supplies, casual taxable persons, non-resident taxable persons, or those operating under reverse charge. Even if a business does not meet the mandatory threshold, voluntary registration might be pursued to claim Input Tax Credit (ITC) on purchases, which can reduce the overall tax burden and enhance competitiveness. Before initiating registration, businesses need to gather specific documentation. This usually includes the business’s Permanent Account Number (PAN) or equivalent tax identification, proof of business registration or incorporation, identity and address proofs for proprietors, partners, or directors, and bank account details. Preparing these documents, such as scanned copies of utility bills, rental agreements, or cancelled checks, is a prerequisite for application.

Steps to Register for GST

Registering for a GST number is predominantly an online procedure, typically initiated through a government tax portal. The initial step involves accessing the official GST portal and selecting new registration. Applicants fill out a preliminary form (Part A) by providing basic details such as the business’s legal name, PAN, and contact information like an email address and mobile number. This part is verified through a One-Time Password (OTP) sent to the provided contact details, generating a Temporary Reference Number (TRN).

With the TRN, applicants complete the main application form (Part B) on the same portal. This section requires detailed business information, including the business’s constitution (e.g., sole proprietorship, partnership, company), principal place of business, and details of goods or services supplied, often categorized by harmonized system of nomenclature (HSN) or service accounting codes (SAC). Promoters, partners, or directors’ information, including identity and address proofs, along with bank account details, must also be entered. Supporting documents, such as proof of business address (e.g., electricity bill, rent agreement) and identity proofs, are uploaded digitally. The application is then submitted, often requiring a digital signature or other verification. Upon successful submission, an Application Reference Number (ARN) is generated to track the application status. After verification by the authorities, the GST Identification Number (GSTIN) and a registration certificate are issued.

Key Responsibilities After Registration

Once a business obtains its GST number, ongoing responsibilities commence to maintain compliance. A primary obligation is to charge and collect GST on all taxable supplies of goods or services made to customers. This collected tax must then be remitted to the government within specified deadlines.

Businesses must issue GST-compliant invoices for all taxable transactions. These invoices must contain specific details:
The supplier’s name, address, and GSTIN
A unique invoice number and date of issue
The recipient’s name and GSTIN (if registered)
A clear description of goods or services, quantity, value, and applicable tax rates
The total GST amount charged

Maintaining records of all business transactions, including sales, purchases, expenses, and invoices, is important for GST purposes. These records must be retained for at least six years.

Input Tax Credit (ITC) is another responsibility. Businesses can claim ITC on the GST paid on their purchases of goods or services used for business purposes. This mechanism allows businesses to offset the tax paid on inputs against their output tax liability, preventing the cascading effect of taxes. Regular filing of GST returns is mandatory, with frequencies typically monthly or quarterly depending on the business’s turnover. These returns report sales, purchases, and the net tax liability or refund claim. Timely filing avoids penalties and interest charges.