GST Registration FAQs: Who Needs It and How to Apply

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Who Needs GST Registration?

 

1. Do You Earn Enough to Need GST?

If your business turnover is more than ₹40 lakh (for goods) or ₹20 lakh (for services) in a year, you must register for GST. But if your business is in a special category state (like Himachal Pradesh, Uttarakhand, and the Northeast), the limit is ₹10 lakh. Example: If you have a textile shop in Surat and your annual sales cross ₹50 lakh, you need GST registration.

 

2. Selling to Other States? You Need GST!

Even if your turnover is below the limit, but you sell outside your state (let’s say from Gujarat to Maharashtra), GST registration is compulsory. This also applies to online sellers. Example: You sell Banarasi sarees online to Delhi, Mumbai, and Chennai customers. Even if your turnover is just ₹5 lakh, you still need GST registration.

 

3. Selling on Amazon, Flipkart, or Meesho? GST Needed!

If you want to sell your products on e-commerce platforms like Amazon or Flipkart, GST registration is mandatory, no matter your turnover. Example: A Surat-based textile trader selling fabric on Amazon needs GST, even if they make just ₹2 lakh a year.

 

4. Buying from Unregistered Sellers? Be Ready for GST

If you buy goods/services from someone who is not registered for GST, you may have to pay GST under reverse charge. In such cases, getting registered can help you claim tax credit and avoid problems. Example: You buy fabric from a small weaver who is unregistered. Under reverse charge, you may have to pay GST on their behalf. It also deals with the unregistered sellers and buyers to get the service done. And that could make it not to pay GST under RCM as well.

 

5. Voluntary Registration: Good Idea or Extra Work?

Even if GST is not required for you, getting registered can be a smart move. It allows you to claim tax credit, issue GST invoices, and do business with bigger clients. Example: A small textile trader with ₹15 lakh turnover registers for GST to get input tax credit on purchases and attract large retailers.

 

How to Apply for GST Registration?

Getting a GST registration might sound like a complicated task, but trust me, it’s easier than it seems. With just a few clicks and the right documents, you can get your GSTIN without breaking a sweat. Here’s a step-by-step guide to help you through the process.

 

Step 1: Apply Online (It’s Simple!)

Go to the GST portal and click on ‘Register Now’ under Services > Registration. Fill in your business details and verify your mobile and email.

 

Step 2: Submit Important Documents

You will need these documents:

📝 PAN card & Aadhaar card of the owner/partners/directors

📝 Proof of business address (Rental agreement/property papers)

📝 Bank details

📝 Passport-size photo

📝 For a textile business, MSME registration or trade license can also help.

 

Step 3: Get Your Application Number

After submitting, you’ll get an Application Reference Number (ARN). The GST officer will check your application and may ask for more details if needed. Approval takes 3-7 working days.

 

Step 4: Get Your GSTIN – You’re Now Registered!

Once approved, you’ll get a 15-digit GST Identification Number (GSTIN). Now, you can issue GST invoices and claim tax credit.

 

Common Questions (Because Doubts Happen!)

Here are some of the frequently asked questions for you:

 

📌 What if I don’t register for GST?

You could get a penalty—10% of the tax due (minimum ₹10,000) for not following the rules. If done on purpose, the fine can be 100% of the tax due.

📌 Can I cancel my GST registration later?

Yes, if your turnover goes below the limit or your business closes, you can cancel it.

📌 What if I make mistakes in my GST application?

No problem! You can change most details online, except PAN, business type, and state.

📌 I have many businesses. Do I need separate GST registrations?

If they are in different states—Yes. If they’re under one PAN in the same state—No, but you can get separate GSTINs if needed.

 

The Final Word

If your textile business needs GST, don’t delay. It helps you avoid penalties, claim tax benefits, and expand your market. Still confused? A good CA or GST expert can help you. So, take the first step, register, and grow your business easily!

 

Frequently Asked Questions

 

Is it essential to register for GST?

Click on the link here to view the detailed answer.

 

How can I check my pending GST liabilities?

Click on the link here to view the detailed answer.

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