A D2C brand can start with one GSTIN and one Shopify store, then suddenly use warehouses in three States. Each stock point changes GST risk because goods are stored, moved and supplied from different locations.
GST registration is not decided only by one turnover number. The first filter is aggregate turnover under the PAN, the second filter is the State from which supply is made, and the third filter is whether any compulsory-registration trigger applies. For many service providers, the practical threshold is ₹20 lakh in a financial year, with lower thresholds in specified States. Exclusive suppliers of goods may get a higher threshold in many States, but that benefit should not be applied to mixed suppliers, service-heavy businesses, or cases covered by compulsory registration.
| Situation | Broad registration trigger | What to check before deciding |
|---|---|---|
| Services or mixed supplies | Aggregate turnover above ₹20 lakh in most States; lower threshold applies in specified States | Include all India PAN-level turnover, exempt supplies and inter-State supplies while computing aggregate turnover. |
| Exclusive supply of goods | Higher threshold of up to ₹40 lakh may apply in many States, subject to State/product conditions | Do not apply the ₹40 lakh threshold blindly if services are also supplied or if the State has a lower threshold. |
| Compulsory registration cases | Registration may be required irrespective of turnover | Check Section 24: inter-State taxable supply, casual taxable person, e-commerce/TCS cases, reverse charge and other notified categories. |
| Voluntary registration | Allowed even below threshold | Useful for ITC and B2B credibility, but it creates monthly/quarterly filing and invoice discipline. |
The biggest compliance mistake is using a single national rule without checking the nature of supply. A cloud kitchen, consultant, D2C brand, dropshipper and wedding planner can all cross the GST line in different ways even if the revenue number looks similar.
GST is State-based. If a brand stores goods in a warehouse or fulfillment centre in another State and supplies goods from there, it may need registration in that State. A 3PL arrangement does not remove GST risk if the goods belong to the brand and outward supplies are made from that location.
| Warehouse setup | Likely GST question | Control needed |
|---|---|---|
| Own warehouse in another State | Separate GSTIN generally needs review | State GST registration, invoice series, stock transfer records. |
| 3PL fulfillment centre | Whether it is an additional place of business or separate State registration | 3PL agreement, warehouse address proof/NOC. |
| Marketplace fulfillment warehouse | Marketplace terms and seller GSTIN mapping | Seller central GST settings and dispatch reports. |
| Temporary event stock | Casual taxable person or temporary place issue | Event dates, stock movement and invoices. |
Movement of stock from one State GSTIN to another is not just logistics; it may require tax invoice, e-way bill and proper valuation between distinct persons. If the brand ships customer orders from different warehouses but invoices from only one GSTIN, customer ITC, return reporting and e-way bill data can mismatch.