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GST registration for share Trader

Good and service tax implementation brought many important changes in our taxation system in India. This integrated regime of tax has provided some relief to the various sectors including stock traders.

In this article, we will discuss the importance of GST registration for share traders, the process involved in obtaining it and benefits.

A- Importance of GST Registration and Relevance of GST registration for share Traders:

The sector of stock trading plays an important role in promoting the growth of economic and development. They are engaged in buying and selling shares with the intention of making profits. However, since the implementation of GST, share trading has also become subject to taxation.

The registration under GST is compulsory for Share/stock traders whose annual turnover cross the limit of Rs. 40 lakhs as per the GST. It is very important to remember that even if the turnover is below the limit, then the voluntary GST registration can help to the traders to avoid the certain limitations and avail benefits such as input tax credit.

B- GST Registration Process:

  • Go to the official GST Portal:

If you have valid primary details like a mobile number, an email id and PAN Card etc then  here is the first step which is you need to go to the official GST portal for your GST Registration the website is www.gst.gov.in  and followed steps further as discussed below.

 You need to fill out the Application Form:

Once you come at the GST Portal then you need to visit services tab section then under registration tab choose yourself a “new registration” option. Further, on the portal you will be able to see some blanks which required detail of your PAN Card, address email address, mobile number etc. Fill out the required details. After this you will receive an OTP which will be sent to verify your contact information.

  • Complete the Application Form:

After verification of your contact details you need to fill out the application for with your correct information. You need to provide your business detail, with the trading name, PAN card details, business address of your business with supporting documents.

  • Upload the required documents:

Now, after fill out the application form you will have to upload your required documents scanned copies. In which you will required your PAN card, bank statement, Aadhar card, address proof and any additional required document by the GST department.

Note: Bank statement was earlier required at the time of  New GST registration application but now after GST registration. Bank details need to upload within prescribed time as mentioned in pop up shows on GST portal.

  • Submit your GST application:

After uploading the application form and documents, you have to review the information provided by you and submit the application on the portal. You will receive An “ARN” (Application Reference Number) for future reference.

  • Verification and Approval:

After submitting the application and getting the application reference number (ARN). The GST officials will review your GST application and start the process of verification. They can inform you in that situation when they required any additional information or document, through the same email or GST portal.

  • Issuance of GST Certificate:

When officer get complete successfully verification of your GST registration, a GST number certificate is going to issue for your business. This GST registration certificate pretend a unique identity of Goods and Services Tax Identification Number (GSTIN). GSTIN is required to continue your business hassle free and helps to conducting business transactions.

C- Benefits of GST Registration for Stock Traders:

  1. Claim the Input Tax Credit (ITC):

The most important benefit of getting the GST registration for share trader is that, they are available to claim an input tax credit. Which means the traders can claim the GST which they paid on the purchase of goods or services. This process helps to reduce the burden of tax and improve the profitability.

  1. Provide you the Legality and Compliance:

GST registration online provides the legality to the business of share trading. The GST helps to ensure your compliance with the regulations of tax and demonstrates the commitment of a businessman’s to operating within the legal framework.

  1. Uninterrupted Interstate Trade:

GST implementation has facilitated you to make a seamless interstate trade. Registered stock traders can trade across the borders of the state without facing any tax barriers. This process makes your trade process simple and contributes to the ease of doing business.


It is mandatory for the share traders to have a GST Registration for share trader business in India. GST ensures compliance with tax regulations, and facilitates seamless trade across the state borders and provides the benefit for access the input tax credit.

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How can you save tax for salary above 10.50 lakh