Sales Tax Registration in India: GST, VAT and CST Services
Businesses in Delhi, the National Capital Region and across India generally register under the Goods and Services Tax (GST) system for taxable supplies covered by GST. State VAT and Central Sales Tax (CST) rules continue to matter for specified goods, legacy transactions and pending proceedings.
What is sales tax, VAT and GST?
Sales tax is an indirect tax associated with the sale of goods. Value Added Tax (VAT) taxes value added through the supply chain, ordinarily allowing eligible input-tax adjustments. GST is a destination-based tax on the supply of goods and services, with input tax credit subject to statutory conditions. These mechanisms aim to limit the cascading of tax on successive business transactions.
GST is governed primarily by the Central Goods and Services Tax Act, 2017, the relevant State or Union Territory GST law, and the Integrated Goods and Services Tax Act, 2017. The GST portal provides registration and compliance facilities.
Who needs GST registration?
Section 22 of the CGST Act sets the ordinary turnover-based registration rule. The generally applicable threshold is Rs. 20 lakh in aggregate turnover, or Rs. 10 lakh in specified special-category states. For persons exclusively supplying goods, a Rs. 40 lakh threshold may apply where the applicable notification and state conditions are satisfied. Exceptions and exclusions must be checked.
Section 24 requires compulsory registration for specified categories, subject to applicable exemptions and notifications, regardless of the normal threshold. Section 23 covers persons not liable to registration, including persons exclusively supplying wholly exempt or non-taxable goods or services and specified agriculturists.
Under Section 2(6), aggregate turnover is calculated on an all-India PAN basis and includes taxable supplies, exempt supplies, exports and inter-state supplies, excluding GST and inward supplies liable to reverse charge. A business should assess the current rules for its particular activity rather than assume one threshold applies universally.
GST registration procedure
- Visit the official GST common portal and choose the registration application.
- Provide the legal business name, PAN, state or union territory, email address and mobile number, as applicable.
- Complete the application with business constitution, promoters or partners, authorised signatory, principal place of business, additional places and supply details.
- Upload supporting documents and complete the prescribed Aadhaar authentication or other verification process, where applicable.
- Submit using the prescribed electronic verification method and track the application reference number.
- Once approved, download the registration certificate in Form GST REG-06 and use the allotted GSTIN.
Section 25 of the CGST Act and Rules 8 to 10 of the CGST Rules, 2017 govern important aspects of the registration application, verification and grant of registration. Processing times and verification requirements can vary by case.
Documents required for GST registration
Documentation depends on the constitution and circumstances of the applicant. Common requirements include:
- PAN of the business or proprietor, as applicable.
- Proof of constitution, such as incorporation certificate, partnership deed or registration document, where relevant.
- Photograph and identity details of the proprietor, partners, promoters or authorised signatory, where requested.
- Principal place of business proof, such as electricity bill, property tax receipt, ownership document, lease or rent agreement, or consent letter with supporting evidence.
- Authorisation letter or board resolution for an authorised signatory, if applicable.
- Additional supporting information required by the GST portal for the relevant applicant category.
Older VAT/CST registration checklists often mentioned municipal receipts, four passport photographs, work orders, and attestations from existing VAT dealers. These are not universal GST registration requirements; supply them only when a competent authority requires them for a particular legacy or sector-specific proceeding.
When do VAT and CST still apply?
After GST implementation, state VAT continues principally for goods outside GST, including alcoholic liquor for human consumption and specified petroleum products until they are brought within GST through the statutory process. The applicable state VAT legislation determines registration, returns and payment obligations. CST can remain relevant to qualifying inter-state sales of goods covered by the continuing CST framework.
Section 2(d) of the Central Sales Tax Act, 1956 defines goods for CST purposes; the post-GST definition is restricted to specified goods. Section 3 explains when a sale or purchase takes place in the course of inter-state trade or commerce. Section 6 deals with CST liability, while Section 8 addresses rates and concessional conditions. Section 7 governs CST registration where applicable.
Businesses handling petroleum products or other goods outside GST should confirm the relevant state commercial taxes department's registration process, including any continuing VAT registration, turnover tax or CST declaration requirements. Historical VAT/CST liabilities, assessments and appeals may continue even where new transactions fall under GST.
Registration and compliance assistance
Businesswonder.com describes tax registration and filing assistance for individuals, proprietorship firms, partnerships, private limited companies and other businesses in New Delhi and NCR. Relevant work may include assessing GST registration liability, preparing documents, filing registration applications, responding to departmental queries, GST return compliance and assistance with applicable legacy VAT/CST matters.
For official guidance, consult the GST portal, CBIC GST resources, GST Council and India Code. For Delhi-specific legacy VAT matters, consult the Delhi Department of Trade and Taxes.
Frequently asked questions
Is VAT registration required for a normal GST-covered business?
Generally no. Such businesses ordinarily use GST registration, where required. VAT obligations can continue for goods outside GST or for earlier periods.
Is CST registration required for every inter-state supply?
No. Inter-state supplies covered by GST are generally subject to IGST rules. CST registration concerns qualifying goods and transactions remaining under the CST Act.
What is a GSTIN?
A GSTIN is the Goods and Services Tax Identification Number allotted to a registered person under the GST framework.
Updated: 8 October 2026. This article provides general information; statutory notifications, state-specific requirements and individual facts determine the applicable obligations.