TOP 10 MISTAKES TO AVOID DURING GST REGISTRATION IN INDIA

If you’re starting a business in India or scaling up, one of the first thing you’ll come across is GST registration and while it might look simple on the surface, there are quite a few traps that people fall into – especially if you’re doing it yourself or trusting someone who’s not really updated.

The Goods and Services Tax (GST) has revolutionized indirect taxation in India by bringing multiple taxes under one unified system. However, the GST registration process can be complex for many businesses, especially small and medium enterprises. Errors during registration can lead to delays, penalties, or even legal complications.

1. Choosing the Wrong Type of Registration

Mistake: Businesses often select the wrong type of registration—Regular, Composition, or Casual taxable person.

Impact: This can lead to incorrect tax filings and penalties.

Fix: Understand your business model and turnover. If your turnover exceeds the threshold limit, regular registration is mandatory. For small businesses (turnover up to ₹1.5 crore), the Composition Scheme might be beneficial.

2. Incorrect PAN or Legal Name

Mistake: Entering incorrect Permanent Account Number (PAN) or mismatched legal name details.

Impact: The application gets rejected or delayed.

Fix: Ensure that your PAN matches the legal name as per the Income Tax database. Cross-check before submission.

3. Using Residential Address Without Proper Proof

Mistake: Many applicants use a residential address as their principal place of business but fail to provide valid documents.

Impact: Leads to rejection or site visits by GST officers.

Fix: Upload valid proof such as utility bills, rent agreement, or NOC from the owner if the premises are rented or shared.

4. Uploading Incorrect or Incomplete Documents

Mistake: Submitting outdated or illegible documents like Aadhaar, address proof, or bank details.

Impact: Application may be rejected or put on hold.

Fix: Ensure all documents are up-to-date, clear, and in the prescribed format and size.

5. Not Linking Aadhaar Properly

Mistake: Failure to complete Aadhaar authentication or linking it incorrectly.

Impact: Delays in registration approval or requirement of physical verification.

Fix: Complete the Aadhaar authentication process during the application for faster approval.

6. Providing Wrong Business Category or Nature

Mistake: Incorrect selection of business type or nature of business (e.g., manufacturer vs trader).

Impact: May affect GST return filing, compliance, and applicability of certain provisions.

Fix: Accurately define your business activity and select appropriate business codes and categories.

7. Not Registering When Mandated

Mistake: Ignoring the need for registration when turnover crosses ₹40 lakh/₹20 lakh (depending on state and type of supply).

Impact: Leads to heavy penalties and tax liabilities.

Fix: Monitor your turnover and register as soon as you cross the threshold.

8. Applying for Multiple Registrations Without Justification

Mistake: Applying for multiple GSTINs within the same state without a valid reason.

Impact: May raise suspicion and lead to audits or cancellation.

Fix: Apply for multiple registrations only if you have multiple business verticals or separate premises in the same state

9. Not Updating Registration Details Timely

Mistake: Failing to update key changes like business address, ownership, or additional places of business.

Impact: Mismatches during verification or return filing, leading to penalties.

Fix: Use Form GST REG-14 to update any changes within the prescribed timelines.

10. Ignoring Professional Help

Mistake: Many businesses rely on untrained intermediaries or attempt to register without adequate knowledge.

Impact: Increases the risk of errors and future complications.

Fix: Consult a GST practitioner or CA, especially if your business has complex operations or interstate supply.

Why Choose Mera Registration for Your GST Needs?

Mera Registration is one of the leading platforms for hassle-free business registrations in India. We simplify the entire GST registration process, ensuring a smooth experience from start to finish. Our expert team guides you through every step, providing professional support and personalized assistance. With Mera Registration, starting your business becomes easier and stress-free. When it comes to registrations — think Mera Registration.
Get in touch with us today!