GST Registration in India: Who Needs It, Thresholds & How to Apply

Turnover-Based Registration Thresholds

GST registration becomes mandatory once aggregate turnover crosses certain thresholds, which vary by state category and by whether the business deals in goods or services:

• Goods suppliers: ₹40 lakh aggregate turnover in most states; ₹20 lakh in specified special category states.
• Service providers: ₹20 lakh aggregate turnover in most states; ₹10 lakh in specified special category states.

"Aggregate turnover" is computed on a PAN-wide basis — i.e., across all business verticals and branches operating under the same PAN, not per individual branch or vertical.

Mandatory Registration Regardless of Turnover

Certain categories of suppliers must register for GST irrespective of turnover, including:

• Businesses making inter-state taxable supplies (with limited exceptions for certain services and handicraft goods)
• E-commerce operators and persons supplying goods/services through an e-commerce platform (with some exceptions for specified services below the threshold)
• Persons required to pay tax under the reverse charge mechanism
• Casual taxable persons and non-resident taxable persons
• Persons required to deduct TDS or collect TCS under GST
• Input Service Distributors and persons supplying via an agent on behalf of another taxable person

Composition Scheme — An Alternative for Small Businesses

Small businesses with turnover up to ₹1.5 crore (₹75 lakh for specified states) for goods, or up to ₹50 lakh for services, can opt for the Composition Scheme — paying GST at a flat, lower rate on turnover with simplified quarterly returns, but giving up the ability to claim input tax credit and to make inter-state outward supplies (for goods dealers).

Documents Required for GST Registration

• PAN of the business/proprietor/partners/directors
• Proof of business registration (incorporation certificate, partnership deed, etc.) where applicable
• Identity and address proof of promoters/directors with photographs
• Address proof of the place of business (electricity bill, rent agreement, NOC from owner, etc.)
• Bank account details — cancelled cheque, bank statement, or passbook copy
• Digital signature (mandatory for companies and LLPs)
• Authorization letter/board resolution for the authorized signatory

The GST Registration Process (Broad Steps)

1. Generate a Temporary Reference Number (TRN) on the GST portal using PAN, mobile number, and email for OTP verification.
2. Complete Part B of the application (Form GST REG-01) with business details, promoter details, place of business, goods/services to be supplied, and bank account information, uploading the required documents.
3. Aadhaar authentication or e-KYC of promoters/authorized signatory (where applicable).
4. The application is processed by the jurisdictional officer; if no discrepancy is found, registration is typically granted within a defined time frame (commonly within 7 working days, or up to 30 days if physical verification is required).
5. On approval, a GSTIN (GST Identification Number) — a 15-digit, PAN-based, state-specific number — is issued along with the registration certificate.

Voluntary Registration

Businesses below the threshold can also register voluntarily — often useful for claiming input tax credit, supplying to GST-registered businesses (who may prefer registered vendors for their own ITC), or building credibility with larger clients. Once voluntarily registered, the same compliance obligations (returns, invoicing, etc.) apply as for mandatory registrants.