The Registration Process under GST Section 68: How to Enroll for GST

The Registration Process under GST Section 68: How to Enroll for GST

GST registration in India flows from Sections 22 to 25 of the CGST Act, 2017 — not Section 68, which governs the inspection of goods in transit. The connection is direct: you need a GSTIN to generate e-way bills, issue valid GST invoices, and move taxable goods legally under Section 68 compliance. In FY 2026-27, mandatory registration kicks in at ₹40 lakh for goods and ₹20 lakh for services (lower in special category states), with GSTIN issuance possible in as few as 3 working days via Aadhaar authentication on the GST portal.

The Section 68 Connection: Why Registration Underpins Transit Compliance

Section 68 of the CGST Act places a statutory duty on every person in charge of a conveyance carrying taxable goods to produce — on demand from a proper officer — a valid tax invoice, delivery challan, and e-way bill. Each of those documents requires a GSTIN at its source. A business operating without registration cannot issue a legally compliant GST invoice, cannot generate an e-way bill on the NIC portal (ewaybillgst.gov.in), and cannot move goods inter-state without exposing the entire consignment to detention, seizure, and penalty under Section 129.

This is why registration is not a back-office formality. It is the legal infrastructure on which your supply chain runs. Miss it, and the first check-post your truck passes through becomes a crisis.

Who Must Register: Thresholds and Mandatory Categories

Turnover-Based Thresholds (FY 2026-27)

The operative concept is aggregate turnover — not just invoiced taxable sales. It includes taxable supplies, exempt supplies, exports, and inter-state supplies made under the same PAN across all states, computed before deducting the GST component. Inward supplies on which you pay GST under reverse charge are excluded from aggregate turnover. This definition is why a Maharashtra-based trader with a small godown in Gujarat cannot treat each state independently when calculating whether the threshold is breached.

Special category states for the lower threshold currently include Manipur, Mizoram, Nagaland, and Tripura. States such as Uttarakhand, Meghalaya, Sikkim, Arunachal Pradesh, and Puducherry have had differential thresholds at various points — always verify the current notified list at cbic.gov.in before concluding your registration obligation.

Mandatory Registration Regardless of Turnover

The threshold exemption disappears entirely for the following categories. If you fall into any of these, register before your first supply — not after you cross ₹40 lakh:

1. Every person making inter-state taxable supply of goods (a conditional exemption exists for service exporters up to ₹20 lakh, but it is narrow)
2. E-commerce operators (platforms like Amazon, Flipkart, Meesho) and every supplier who sells through an e-commerce operator
3. Casual taxable persons — anyone conducting taxable business in a state where they do not have a fixed establishment
4. Non-resident taxable persons making supplies in India
5. Persons liable to deduct TDS under Section 51 (government departments, PSUs, certain notified entities)
6. Persons liable to collect TCS under Section 52 (e-commerce operators on behalf of sellers)
7. Input Service Distributors (ISD) distributing common input tax credit to branches
8. Agents supplying goods or services on behalf of a principal

E-commerce sellers consistently underestimate this rule. A seller with ₹8 lakh annual turnover on Meesho must still obtain a GSTIN — the ₹40 lakh exemption does not apply.

Aggregate Turnover: A Worked Example

Scenario: Priya runs a textile manufacturing unit in Rajasthan (a general state). In FY 2026-27, her books show:

Priya's aggregate turnover is ₹43 lakh — above the ₹40 lakh goods threshold. She crossed that threshold in, say, October 2026. Under Section 25(1) of the CGST Act, she must apply for registration within 30 days of the date she became liable — meaning by 29 November 2026 at the latest.

What happens if she delays? Suppose Priya continues operating unregistered through December 2026, making ₹9 lakh of additional taxable supplies at 18% GST — a tax liability of ₹1,62,000 she has neither charged to customers nor remitted to the government.

Her exposure:

• Penalty under Section 122: Higher of ₹10,000 or ₹1,62,000 (the tax evaded) = ₹1,62,000
• Interest under Section 50: 18% per annum on ₹1,62,000 for the period of delay
• Possibility of best-judgement assessment under Section 62 if returns are not filed retroactively

The cost of one missed deadline compounds quickly. Filing voluntary registration the moment turnover approaches the threshold — rather than waiting for it to be breached — eliminates this tail risk entirely.

Documents You Need Before You Open the Portal

Part B of the GST registration application times out if left idle. Uploading documents one by one while searching your email is a reliable way to lose a half-completed session. Compile everything before you begin.

Universal Requirements

• PAN of the business entity — GSTIN is PAN-based; no PAN means no GSTIN
• Aadhaar of the proprietor / all partners / all directors — required for Aadhaar authentication
• Passport-size photograph of proprietor or authorised signatory (JPEG, under 100 KB)
• Cancelled cheque or first page of passbook — showing account number, IFSC, bank name, and account holder name

Address Proof for Principal Place of Business

• Own premises: Property tax receipt or electricity bill not older than 2 months
• Rented premises: Registered rent agreement plus a No Objection Certificate (NOC) from the owner on plain paper
• Consent / family premises: Written consent letter from the owner plus their proof of ownership

Constitution Proof

• Proprietorship: PAN and Aadhaar sufficient — no separate document
• Partnership firm: Registered Partnership Deed
• LLP: Certificate of Incorporation + LLP Agreement
• Private / Public Limited Company: Certificate of Incorporation + Memorandum of Association (MoA) + Articles of Association (AoA)
• HUF: HUF deed + PAN of the HUF

Signing Mechanism

• DSC (Digital Signature Certificate): Mandatory for private limited companies, public limited companies, and LLPs — the application cannot be submitted without it
• EVC (Electronic Verification Code): OTP sent to the registered mobile number — permissible for proprietorships, partnerships, HUFs, and trusts

Step-by-Step Enrollment on the GST Portal

Part A: OTP Verification and TRN Generation

1. Go to gst.gov.in and click "Register Now" under the Taxpayers (Normal / TDS / TCS) tab.
2. Select "New Registration". Choose taxpayer type — "Regular Taxpayer" covers most manufacturers, traders, and service providers.
3. Enter your PAN, mobile number, and email address. The portal sends a separate OTP to each — both must be verified before proceeding.
4. On successful verification, you receive a Temporary Reference Number (TRN). This TRN is valid for exactly 15 days. Record it immediately — it is your re-entry key if you do not finish Part B in one session.

Part B: Business Information and Document Upload

Log back in using your TRN and complete the following tabs in sequence:

After submission, the system issues an Application Reference Number (ARN). Track status at gst.gov.in → Track Application Status.

Aadhaar Authentication: The Speed-vs-Verification Trade-Off

How to Complete the e-KYC Step

1. After filling all Part B tabs, click "Proceed to Aadhaar Authentication".
2. An OTP is sent to the mobile number seeded with the Aadhaar of the authorised signatory (or proprietor / each partner in a partnership).
3. Enter the OTP to complete e-KYC. If you are unsure whether your mobile number is linked to Aadhaar, check at myaadhaar.uidai.gov.in → Verify Aadhaar before beginning.
4. For entities where the signatory's Aadhaar-linked mobile is not accessible, in-person biometric authentication is available at a GST Suvidha Kendra.

What the Authentication Determines

For a founder wanting to start trading quickly, the calculus is simple: seed your Aadhaar with an active mobile number before you start, and avoid a month-long wait. For companies and LLPs where the authorised signatory does not have an Aadhaar-seeded mobile number, plan for physical verification — brief the premises caretaker and ensure the address on the application matches the actual location precisely.

Reading Your GSTIN

When Form GST REG-06 (the registration certificate) is issued, it carries your 15-character GSTIN. The structure:

• Digits 1–2: State code (e.g., 27 for Maharashtra, 07 for Delhi)
• Digits 3–12: Your entity's PAN
• Digit 13: Entity number within the state (1 for your first registration)
• Digit 14: Always Z (reserved)
• Digit 15: Alphanumeric check digit

The Composition Scheme: Register, Then Evaluate

The Section 10 Composition Scheme can be selected either at the time of fresh registration or at the start of a financial year (by filing Form GST CMP-02 by 31 March of the preceding year).

Eligibility in FY 2026-27

• Manufacturers and traders: Aggregate turnover below ₹1.5 crore (₹75 lakh in special category states)
• Service providers (and mixed suppliers with services not exceeding 10% of turnover): Up to ₹50 lakh under the CGST Rules

Composition Rates (verify latest notification on cbic.gov.in)

• Manufacturers: 1% of turnover (0.5% CGST + 0.5% SGST)
• Traders: 1% of taxable turnover
• Restaurants (not serving alcohol): 5% of turnover
• Service providers: 6% of turnover

The Trade-Off in Plain Numbers

Suppose a trader has ₹60 lakh annual turnover, buys goods at 12% GST (₹7.20 lakh input tax), and makes retail sales at 12% (₹7.20 lakh output tax). Under the regular scheme, net GST payable after ITC = near zero. Under composition, GST = 1% of ₹60 lakh = ₹60,000 — but no ITC credit, so he absorbs the ₹7.20 lakh of input GST as a cost. For this trader, the composition scheme increases his real tax burden, despite the low rate headline. Run the numbers for your specific purchase-to-sales GST ratio before opting in.

Common Mistakes and Pitfalls to Avoid

1. Inflating Aggregate Turnover by Including GST

CGST, SGST, IGST, and cess amounts are not part of aggregate turnover. Including taxes when calculating whether you have crossed ₹40 lakh will trigger premature registration — and premature registration costs real money.

2. Selecting the Wrong Principal Place of Business State

Your state selection determines your GSTIN's state prefix, your jurisdictional officer, and the SGST versus IGST treatment of your supplies. A Delhi PAN holder who declares Maharashtra as principal place of business will create invoice mismatches that haunt every e-way bill and refund claim thereafter.

3. Wrong or Vague HSN / SAC Codes

Incorrect HSN codes entered at registration propagate to every GSTR-1, every e-invoice, and every e-way bill. Use the HSN search functionality on the GST portal itself to confirm the correct 4-digit (for turnover below ₹5 crore) or 8-digit (above ₹5 crore) code. A clothing trader who codes all products under a generic head will face reconciliation problems the moment a buyer's system auto-matches.

4. Outdated or Incomplete Address Proof

Electricity bills older than 2 months and rent agreements without an accompanying NOC are the two most-cited reasons for officer queries and physical verification triggers. Date-check your address proof the day you sit down to file, not the day you collected it.

5. Not Declaring All Places of Business

Under Rule 25 of the CGST Rules, every place from which supplies are made must be declared. Operating from an undeclared godown or a second branch makes those premises "unregistered" for GST purposes — exposing you to a show-cause notice if the proper officer conducts a surprise inspection. File Form GST REG-14 (Amendment Application) within 15 days of opening any new business location.

6. Missing the 30-Day Registration Window

The clock starts running from the date your aggregate turnover first crosses the threshold — not from year-end, not from the date you "notice" the breach during an audit. Many businesses discover mid-year threshold crossings retrospectively when their accountant reconciles books in March. The result is an avoidable penalty tail covering several months of unregistered supplies.

Post-Registration Obligations: Your Compliance Calendar

GSTIN issuance is the beginning of a monthly and quarterly compliance rhythm, not the end of the journey.

Mandatory Display and Invoicing

• Display the GST registration certificate (Form GST REG-06) at every registered place of business
• Print your GSTIN on every tax invoice, delivery challan, and receipt voucher
• Issue a compliant tax invoice under Rule 46 of the CGST Rules, including mandatory fields: GSTIN of supplier and recipient, place of supply, HSN / SAC, tax rate, and tax amount broken out by CGST / SGST / IGST

Return Filing at a Glance (FY 2026-27)

Late fee for a non-nil GSTR-3B: ₹50 per day (₹25 CGST + ₹25 SGST), subject to the maximum cap notified for your turnover slab. For nil returns, the late fee is ₹20 per day (₹10 + ₹10).

E-Way Bill and E-Invoicing

• E-way bills are mandatory for inter-state goods movement above ₹50,000 in value. Intra-state thresholds differ by state — check the NIC portal (ewaybillgst.gov.in) for your state's current limit before your first dispatch.
• E-invoicing (reporting invoice details to the Invoice Registration Portal at einvoice1.gst.gov.in for a signed IRN) is mandatory for businesses with aggregate turnover above ₹5 crore, as notified by CBIC. Verify whether any revision applies in FY 2026-27 before assuming you are below the threshold.

Record-Keeping

Under Section 36 of the CGST Act, all accounts, registers, and documents must be retained for at least 6 years from the due date of filing the annual return for the relevant financial year — or longer if any proceeding is pending at the end of that period.

Key Takeaways

• Sections 22–25 of the CGST Act are the registration law; Section 68 is the transit inspection law — but you need a valid GSTIN to comply with both, since every document checked under Section 68 originates from a registered supplier.
• Aggregate turnover includes taxable + exempt + export + inter-state supplies under the same PAN across India; taxes are excluded. Get this calculation right before deciding whether you are below the threshold.
• Inter-state suppliers of goods and all e-commerce sellers must register regardless of turnover — the ₹40 lakh / ₹20 lakh exemption does not apply to them.
• Your TRN (Temporary Reference Number) is valid for only 15 days — prepare all documents before starting Part B to avoid a lapsed application.
• Complete Aadhaar authentication during Part B for a 3-working-day GSTIN issuance; skip it and wait up to 30 working days for physical premises verification.
• Delayed registration after the liability date is not just a technical lapse — it creates a Section 122 penalty of ₹10,000 or the tax evaded (whichever is higher) plus interest at 18% per annum under Section 50 on unpaid tax.
• Post-registration, the GSTR-1, GSTR-3B, e-way bill, and (where applicable) e-invoicing obligations begin from the first supply made under the GSTIN — not from the first return due date.