gst for small business

GST registration for small businesses – Here’s all you need to know

PUBLISHED ON: Nov 22 2022


Before initiating any business, one must be competent with the proper regulation and legislation for their area of undertaking. This comprises any taxes that their business might be accountable for paying.

The Goods and Services Tax, which came into the limelight in 2017, intends to abet small businesses by abolishing the complex state and centre taxation systems and substituting them with a simple one.

If you are about to launch a new business, it is necessary to know all about GST registration for small businesses. Yes, all small businesses register for GST, as they must do so under the GST Act. You must consider getting a GST for small businesses if you are a goods manufacturer with an annual turnover of over Rs. 40 Lakhs. 

In the services sector, businesses which make more than 20 lakhs INR must do gst registration. This limit was decreased to 10 lakhs INR for northeast states.

After gst registration for small businesses, the owner is given a Goods and Services Tax Identification Number(GSTIN) to maintain a record of due amounts and tax payments.

Why must Small Businesses choose online GST registration?

Although several small businesses try to avoid taxes, the advantages of gst registration for small businesses are remarkable.


In the following section, we have split why small businesses must register for GST:

Integrated taxation:

  • With the advent of GST, indirect taxes like VAT, service tax, and excise tax are not in existence. This aspect denotes that small entrepreneurs must no longer pay taxes on taxes.

Composite scheme:

  • Any business with a yearly turnover of more than 75 lakhs INR can pay a flat tax between 1% and 5%.

Transportation charges:

  • Taxes on the interstate transportation of goods are decreased under GST. This aspect reduced the entire cost of procurement of raw materials and product distribution.


  • Obtaining a GST number for small businesses can make it seem more genuine for bigger companies. These businesses refrained from any needless compliances and can file their returns quarterly.

Simple access to credit: 

  • The GST requisites increase the chances of getting business loans at lower interest rates. 

This occurs as the operations are registered with a government unit, and the opportunities for deceptive activities are minor.

Important Documents for GST registration for small business:

List of necessary documents:

  • PAN card of the company
  • Passport-sized photographs of the owners
  • Identity proofs such as passport, Aadhaar cards, or driver’s licence
  • Certificate of association for OPCs, LLPs, and private limited companies
  • Bank specifications via passbook, bank statements, or cancelled cheques
  • Partnership deed for partnership firms

Online GST Registration Process for small businesses

GST Registration services for small businesses are separated into two parts. Go through these steps for the initial part of obtaining a GST number for small business:

  • Go to the GST website and choose "Services," go to "Registration," and tap on ‘New Registration.’
  • A form will be there. Insert all the significant specifications and choose "Proceed."
  • OTP will be sent on the phone number and registered email ID. 
  • Note the 15-digit temporary reference number (TRN) sent for future help during the second registration stage.
  • Revisit the GST portal; under "New Registration," choose the TRN option and insert your TRN number.
  • Input the captcha code and pick "Proceed."
  • Enter the OTP obtained on your registered mobile number and email ID.
  • Hit on "Proceed" to perceive the status of your application and do edits.
  • You can finish the second part of GST registration for a small business after 15 days of the first part. 
  • Choose the "Business Details" section on the dashboard and enter the business constitution, trade name, and operations district.
  • Key in other specifications, such as the date of commencement of business, and confirm whether you are a casual taxation person or not. If yes, create challans for advance tax payments under the GST law.
  • Pick your proper "Reason to Obtain Registration" and insert the details.
  • Opt for your registration types, such as excise duty, central sales tax, or service tax, then insert the registration number and date of registration.
  • Insert the details of up to 10 promoters under the Partners/Promoters tab.
  • Enter the details of the authorized signatory.
  • Put the major place of business features.
  • Enter the aspects of goods and services with SAC or HSN codes.
  • Give the bank details of the taxpayer.
  • Enter your state excise license number, professional tax employee code, and professional tax registration certificate.
  • Choose between Aadhaar verification and other alternatives.
  • Go to the verification page and submit the application with DSC for Limited Liability Partnerships and companies, e-sign for Aadhaar verification, or EVC via a registered mobile number.
  • Acquire a confirmation message conveying that your application is completed.



The GST Registration services have upgraded small businesses in many ways. Due to the elimination of troublesome taxation policies and unified regimes, businesses have simplified their workflows, enhanced their credibility, and gained better access to loans. 

If you are facing difficulty with online gst registration, then do reach out to Lawgical India. Our professionals are always ready to guide you properly for every aspect of GST registration. Contact us today.

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