Frequently Asked Questions (FAQs)
1. What is GST registration?
GST registration is a process where businesses get a unique 15-digit GSTIN (Goods and Services Tax Identification Number) to legally collect GST and file tax returns.
2. Who needs to register for GST?
Businesses must register if:
- Their yearly sales exceed ₹40 lakh (₹20 lakh for service providers).
- They sell goods or services across states.
- They run an e-commerce business.
- They are required to pay tax under the reverse charge mechanism.
3. What are the benefits of GST registration?
- Legal business operations – You can officially collect and pay GST.
- Tax benefits – You can claim input tax credit to reduce your tax burden.
- Growth opportunities – Expand your business nationwide without restrictions.
- Better credibility – Customers and suppliers trust GST-registered businesses more.
4. What documents are needed for GST registration?
- PAN card of the business owner.
- Proof of business registration.
- Identity & address proof of business owners or directors.
- Business address proof.
- Bank details.
- Digital signature (for companies/LLPs).
5. How can Early Grow apply for GST registration?
You can apply online through the GST portal by filling out the application form (GST REG-01), submitting documents, and verifying your details.
6. Is there any fee for GST registration?
No, GST registration is completely free on the government portal. However, if you hire a consultant for assistance, they may charge a fee.
7. What happens if a business does not register for GST?
If you don’t register when required, you could face a penalty:
- 10% of the tax due or ₹10,000, whichever is higher.
- 100% penalty if you intentionally avoid registration and tax payments.
8. Can a firm operate in multiple states with one GST registration?
No, if your business operates in multiple states, you need separate GST registrations for each state.
9. What is the Composition Scheme under GST?
It’s a simplified tax scheme for small businesses with yearly sales up to ₹1.5 crore. Businesses pay GST at a fixed percentage of turnover but cannot claim input tax credit.
10. How long does it take to get GST registration?
It usually takes 2-6 working days if all documents are correct.
