Requirement of GST Registration in India
An overview under the Central Goods & Services Tax Act, 2017
The Goods and Services Tax (GST) is a unified indirect tax levied on the supply of goods and services across India. Registration under GST is mandatory for every supplier whose aggregate turnover crosses the prescribed threshold, or who falls under specific categories requiring compulsory registration — irrespective of turnover.
1
Aggregate Turnover Threshold Limits
The following turnover-based thresholds determine whether registration is required. Aggregate turnover means all taxable, exempt, and export supplies computed on an all-India basis.
| Category of Supplier | Goods | Services | Applicable States |
|---|---|---|---|
| General Suppliers | ₹ 40 Lakh | ₹ 20 Lakh | Most states & UTs |
| Special Category States | ₹ 20 Lakh | ₹ 10 Lakh | NE states, J&K, Himachal, Uttarakhand, etc. |
| Composition Scheme Suppliers | ₹ 1.5 Crore (₹ 75 Lakh for special states) | All states | |
* States that have opted for the lower ₹ 40 Lakh limit for goods include Telangana, Puducherry, and certain others — verify the latest notification applicable to your state.
2
Persons Mandatorily Required to Register
Regardless of turnover, the following persons must obtain GST registration under Section 24 of the CGST Act, 2017:
- Persons making inter-state taxable supplies of goods or services
- Casual taxable persons making taxable supplies
- Persons required to pay tax under the reverse charge mechanism (RCM)
- Non-resident taxable persons making taxable supplies
- Persons required to deduct TDS under Section 51 (Government entities, etc.)
- Input Service Distributors (ISD)
- E-commerce operators and persons supplying goods/services through an e-commerce operator liable to collect TCS under Section 52
- Every person supplying online information and database access or retrieval (OIDAR) services from outside India to a non-registered person in India
- Persons supplying goods/services on behalf of a registered taxable person (agents)
3
Voluntary Registration
A person whose aggregate turnover is below the threshold limit may still apply for voluntary registration. Once granted, such a person is treated as a registered supplier and must comply with all GST provisions including filing of returns and payment of tax.
🔗
Input Tax Credit
Enables claiming ITC on purchases, reducing the tax burden on your customers.
🌐
Inter-State Supplies
Facilitates business across state borders without tax complications.
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Compliance Credibility
Adds trust and formal standing when dealing with registered buyers.
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Exports & Refunds
Enables zero-rated supplies and refund claims on exports.
4
Persons Exempted from Registration
The following are not required to register under GST:
- Persons making supplies exclusively of exempted goods or services
- Agriculturists supplying produce out of cultivation of land
- Persons whose entire tax liability is met by the recipient under RCM
- Persons making only intra-state supplies in specified states below the threshold (as per applicable exemption notifications)
5
Documents Required for Registration
Identity & Address
- PAN Card of the applicant / entity
- Aadhaar Card of proprietor / partners / directors
- Photograph of proprietor / authorised signatory
- Proof of address (Electricity bill / Rent agreement)
Business Proof
- Certificate of Incorporation (for companies)
- Partnership deed (for partnerships)
- Bank account statement or cancelled cheque
- Digital Signature Certificate (DSC) for companies/LLPs
Place of Business
- Municipal khata or property tax receipt (own premises)
- Rent / lease agreement (rented premises)
- NOC from owner (if no agreement exists)
- Latest utility bill of the business premises
For Specific Cases
- IEC Code (for importers/exporters)
- FSSAI licence (food businesses)
- Passport & visa copy (non-resident taxable persons)
- Board Resolution authorising signatory (companies)
6
Process of Registration
Step 1 — Submit Application (Form GST REG-01)
File online on the GST portal (www.gst.gov.in) using PAN and mobile/email OTP verification. A Temporary Reference Number (TRN) is generated.
Step 2 — Upload Documents
Log in with TRN and complete Part B of REG-01 by attaching all required documents. Submit with DSC / EVC.
Step 3 — Scrutiny by Proper Officer
The application is examined. If deficiencies are found, a notice in Form GST REG-03 is issued within 3 working days.
Step 4 — Reply to Notice (if any)
Applicant must reply in Form GST REG-04 within 7 working days from receipt of notice, furnishing clarifications or additional documents.
Step 5 — Grant of Registration (Form GST REG-06)
If satisfied, the officer approves the application and issues the registration certificate within 7 working days (extendable to 30 days in case of Aadhaar non-authentication).
7
Consequences of Non-Registration
⚠ Penalties & Consequences
- Penalty of 10% of the tax due, subject to a minimum of ₹ 10,000 — where failure is not fraudulent.
- Penalty equal to 100% of the tax due — where failure is deliberate / fraudulent.
- Inability to collect GST from customers or issue a valid tax invoice.
- Denial of Input Tax Credit to the purchaser, affecting business relationships.
- Prosecution and arrest in cases of deliberate suppression exceeding prescribed limits.