GST Registration · Chapter 1
What is GST Registration?
In short
GST Registration gives your business a 15-character GSTIN, which lets you charge GST and claim input tax credit, but also obliges you to issue tax invoices and file regular GST returns.
GST Registration is the process by which a business gets a GSTIN — a 15-character Goods and Services Tax Identification Number — that lets it charge GST on its sales and claim credit for the GST it pays on purchases. In return, the business must issue proper tax invoices and file GST returns regularly.
Goods and Services Tax (GST) is the tax on the supply of goods and services in India. It replaced many older taxes, such as VAT, service tax and excise duty, from 1 July 2017. GST Registration gives your business a GSTIN based on your PAN and your state. The Registration is done online on the official GST portal, and the government charges no fee for it.
What does a GSTIN look like?
Every GSTIN follows the same pattern, so you can read a lot from the number itself.
| Characters | What they show |
|---|---|
| 1–2 | State code (for example, 27 for Maharashtra) |
| 3–12 | PAN of the business or proprietor |
| 13 | Entity number for the same PAN in that state |
| 14 | The letter Z by default |
| 15 | Check digit |
What does GST Registration allow you to do?
- Collect GST from customers on your invoices.
- Claim input tax credit — the GST you paid on purchases and expenses — against the GST you owe.
- Sell to other states and on many e-commerce platforms.
- Work with larger businesses that prefer registered suppliers so they can claim credit.
What does GST Registration oblige you to do?
- Issue proper tax invoices.
- File returns every month or quarter — even when there are no sales.
- Pay the tax collected, on time.
- Keep records for the prescribed period.
- Display the Registration certificate and your GSTIN at your place of business.
These duties continue for as long as the Registration is active. If the business stops, the GSTIN has to be cancelled formally — simply stopping the filings leads to late fees.
Why is there one GST Registration per state?
GST is registered state-wise. A business operating in Maharashtra and Gujarat needs a separate GSTIN in each state, all linked to the same PAN.
This is because GST is shared between the Centre and the states. A sale within a state carries Central GST (CGST) and State GST (SGST); a sale to another state carries Integrated GST (IGST). Each state Registration keeps its own accounts, returns and credits.
What are the GST rates today?
From 22 September 2025, most goods and services fall into two main rates — 5% and 18% — with a 40% rate for luxury and sin goods, and a few special rates such as 3% for gold and jewellery. Some items are exempt altogether. Always check the rate for your specific item or service using its HSN code (for goods) or SAC code (for services) on the CBIC GST rates page.
Key takeaways
- A GSTIN is PAN-based and state-wise.
- GST Registration brings input tax credit — and regular returns.
- Returns are due even in months with zero sales.
- The Registration itself carries no government fee.
Frequently asked questions
What is a GSTIN number?
A GSTIN (Goods and Services Tax Identification Number) is the 15-character number issued on GST Registration. The first two digits are the state code, the next ten are the PAN of the business, then comes an entity number, the letter Z by default, and a check digit. Each state Registration under the same PAN gets its own GSTIN.
Is GST Registration free in India?
Yes. The government charges no fee for GST Registration on the official GST portal, gst.gov.in. The application, Aadhaar authentication and the Registration certificate in Form REG-06 are all free of government fees. Any money a business spends on GST Registration is for professional help it chooses to take, not a government charge.
Can one PAN have more than one GST Registration?
Yes. GST is registered state-wise, so a business that operates in several states needs a separate GSTIN in each of those states, all linked to the same PAN. A business may also choose to take separate Registrations for different places of business within the same state, subject to the rules.
What do I have to do after getting GST Registration?
After the GSTIN is issued, you must issue proper tax invoices, collect and pay GST on time, and file returns such as GSTR-1 and GSTR-3B every month or quarter, even in periods with no sales. You must also display the Registration certificate and GSTIN at your place of business and keep accounts and records for the prescribed period.
What are the GST rates in India now?
From 22 September 2025, most goods and services are taxed at 5% or 18%, with a 40% rate for luxury and sin goods. A few items carry special rates, such as 3% for gold and jewellery, and some are exempt. The exact rate depends on the HSN code of the goods or the SAC code of the service.
