From zero knowledge to full GST compliance — registration, HSN/SAC, GST rates, e‑way bill, returns, audit & surrender support for businesses across India.
Goods and Services Tax (GST) is a destination‑based indirect tax levied on the supply of goods and services in India. It replaces multiple taxes like VAT, Service Tax, Excise Duty, etc., and is collected at each stage of value addition. Every business crossing the prescribed turnover limit or falling under mandatory registration criteria must obtain a GSTIN.
15‑digit unique GST Identification Number issued to registered taxpayers.
Central GST, State GST, and Integrated GST depending on intra‑state or inter‑state supplies.
Allows businesses to claim credit of GST paid on purchases against GST payable on sales.
GST registration is mandatory when your aggregate turnover crosses specified limits or you fall under compulsory registration categories.
| Category | Turnover Limit | Remarks |
|---|---|---|
| Normal Business (Goods) | ₹40 lakh (most states) | ₹20 lakh for special category states. |
| Service Providers | ₹20 lakh | ₹10 lakh for special category states. |
| Compulsory Registration | Irrespective of turnover | Inter‑state supply, e‑commerce sellers, reverse charge, casual taxable persons, non‑resident taxable persons, etc. |
| Voluntary Registration | No minimum limit | Businesses opting for GST to claim ITC and work with GST‑registered clients. |
Different GST registration categories based on nature of business and operations.
For businesses with regular supply of goods/services. Monthly/quarterly returns and full ITC eligibility.
For small taxpayers with lower turnover. Pay tax at a fixed rate on turnover, but cannot collect GST or claim ITC.
For businesses with temporary operations in a different state (exhibitions, fairs, etc.). Advance tax deposit required.
For foreign entities supplying goods/services in India without a fixed place of business.
For distributing input tax credit of services to different branches.
For entities required to deduct or collect tax at source under GST.
Basic documents required vary by business type (proprietorship, partnership, company, etc.).
• PAN of proprietor
• Aadhaar of proprietor
• Photograph
• Address proof of business (rent agreement, electricity bill)
• Bank statement/cancelled cheque
• PAN of firm
• Partnership deed / LLP agreement
• Partners’ PAN & Aadhaar
• Business address proof
• Bank details
• PAN of company
• Certificate of Incorporation
• MOA & AOA
• Directors’ PAN & Aadhaar
• Board resolution/authorization letter
• Business address proof & bank details
Typical timeline: 3–7 working days, subject to document correctness and department verification.
Gather all KYC, business proof, bank details, and authorization documents.
File GST REG‑01 on the GST portal with all details and upload documents.
Verify mobile and email via OTP; Aadhaar authentication may be required.
GST officer reviews application; may raise queries via GST REG‑03.
Reply to queries with additional documents or explanations.
On approval, GSTIN and registration certificate (REG‑06) are issued.
Audit requirements depend on turnover and specific notifications. Many businesses also require internal GST review.
Earlier mandatory above specified turnover; now replaced with self‑certified reconciliation in GSTR‑9C (subject to changes). Businesses should still maintain proper records.
Recommended for businesses with high ITC, multiple branches, or complex transactions to avoid notices and penalties.
Mismatch in GSTR‑1 vs GSTR‑3B, ITC mismatch with GSTR‑2B, negative cash ledger, high refunds, e‑way bill discrepancies.
GST registration can be cancelled voluntarily or by the department under specific conditions.
• Business closed
• Turnover falls below threshold
• Change in constitution (e.g., proprietorship to company)
• Wrong registration taken
• File GST REG‑16 online
• Provide reason for cancellation
• Clear tax liabilities & file final return (GSTR‑10)
• Wait for officer approval and cancellation order
Do not issue tax invoices or collect GST. Maintain records for future reference and possible departmental verification.
Correct HSN (for goods) and SAC (for services) classification is critical for proper GST rate application and return filing.
Harmonized System of Nomenclature used to classify goods. Number of digits required depends on turnover and type of taxpayer.
Service Accounting Codes used to classify services for GST purposes.
• Use official GST rate search tools
• Search by HSN/SAC or description
• Verify rate notifications for latest changes
• Maintain internal HSN/SAC master for all items
For detailed HSN/SAC mapping and GST rate classification for your products/services, NextGen can prepare a customized HSN/SAC master list.
E‑way bill is mandatory for movement of goods above specified value and distance thresholds.
• Movement of goods above prescribed value (commonly ₹50,000)
• Inter‑state and certain intra‑state movements
• Job work, branch transfers, export/import movements
Supplier, recipient, or transporter depending on who initiates movement and holds invoice.
Goods without valid e‑way bill, expired e‑way bill, mismatch between invoice and e‑way bill, vehicle number errors.
Once GSTIN is obtained, regular compliances must be followed to avoid penalties and notices.
• GSTR‑1 (Outward supplies)
• GSTR‑3B (Summary return)
• GSTR‑9 (Annual return, if applicable)
• GSTR‑9C (Reconciliation, if applicable)
Match ITC with GSTR‑2B, avoid ineligible ITC, reverse ITC where required, maintain purchase register.
Issue GST‑compliant invoices, maintain books of accounts, stock register, and HSN‑wise summary.
Handle departmental notices, DRC‑01, mismatch intimations, and respond within timelines.
Clear answers to the most common GST registration and compliance doubts.
Yes, if your turnover crosses the prescribed limit or you fall under compulsory registration (inter‑state supply, e‑commerce, etc.).
Generally 3–7 working days, depending on document correctness, Aadhaar authentication, and officer verification.
No. Supplying taxable goods/services without GST registration after crossing limits can lead to penalties and notices.
Late fees, interest, blocking of e‑way bill, ITC issues, and possible cancellation of GSTIN.
Yes, by filing an application and following transition rules. ITC and invoicing will change accordingly.
No. Each state requires separate GST registration if you have a place of business there.
Keep these records ready for accurate monthly, quarterly, and annual GST filings.
• Tax invoices
• Credit/debit notes
• Export invoices
• E‑commerce sales reports
• HSN‑wise summary
• Purchase invoices
• Import bills of entry
• Expense invoices
• Reverse charge invoices
• ITC eligibility details
• Bank statements
• Cash book
• Debtors/creditors ledger
• Stock register
• E‑way bill reports
• Vehicle details
• Movement records
• GST portal challans
• Refund applications
• Notices & replies
• Reconciliation statements (GSTR‑1 vs 3B vs 2B)
Choose the right GST option based on your turnover, business model, and client requirements.
| Type | Who Should Opt | Key Features | Limitations |
|---|---|---|---|
| Regular Registration | Businesses with normal turnover and B2B clients. | Full ITC, can issue tax invoices, monthly/quarterly returns. | Higher compliance, detailed records required. |
| Composition Scheme | Small traders and restaurants with lower turnover. | Pay tax on turnover at fixed rate, simpler returns. | Cannot collect GST, cannot claim ITC, limited to intra‑state. |
| Voluntary Registration | Businesses below threshold but dealing with GST clients. | Can claim ITC, work with larger clients, better compliance image. | Must file regular returns and follow all GST rules. |