Introduction
GST registration is mandatory for businesses in India with turnover exceeding Rs. 20 lakh (Rs. 10 lakh in special category states). While the process is online and straightforward, errors can lead to delays, rejections, or penalties. This guide highlights common mistakes and how to avoid them.
Why GST Registration Matters
Registering under GST allows you to collect tax, claim input tax credits, and comply with the law. Mistakes during registration can disrupt these benefits and attract scrutiny.
Mistake 1: Incorrect Business Details
Entering wrong PAN, Aadhaar, or business names delays verification.
Solution: Double-check details against official documents before submission.
Mistake 2: Incomplete Documentation
Missing proofs like address or identity documents leads to rejection.
Solution: Upload all required docs—PAN, Aadhaar, rent agreement, or utility bills—in the correct format.
Mistake 3: Wrong Business Type
Selecting an incorrect category (e.g., regular taxpayer vs. composition scheme) causes compliance issues.
Solution: Consult a CA to choose the right type based on turnover and operations.
Mistake 4: Delays in Application
Waiting until the last minute risks missing the 30-day registration window post-threshold breach.
Solution: Apply as soon as you cross the turnover limit.
Mistake 5: Misunderstanding Thresholds
Some assume GST applies only above Rs. 40 lakh, missing the Rs. 20 lakh limit for services.
Solution: Know your state’s threshold and register accordingly.
Mistake 6: Failing to Update Changes
Not updating address or ownership changes post-registration invites penalties.
Solution: File amendments promptly via the GST portal.
Tips for a Smooth Process
1. Use a checklist for documents.
2. Verify details with a professional.
3. Track application status regularly.
Conclusion
Avoiding these GST registration mistakes ensures compliance and uninterrupted operations. Need help with GST registration? Our experts are here to assist - Contact us today.
FAQs
Delays, rejections, or penalties may occur.
Yes, via the GST portal under “Amendment of Registration.”
Typically, 3-7 working days if documents are correct.
PAN, Aadhaar, address proof, bank details, and business incorporation docs.
No, only for those exceeding the turnover threshold or in specific categories.