Who Must Register for GST?
GST registration is mandatory if any of the following apply:
- Aggregate turnover exceeds threshold:
- Service providers: ₹20 lakh per annum in most states; ₹10 lakh in special category states (Manipur, Mizoram, Nagaland, Tripura)
- Goods suppliers: ₹40 lakh per annum in most states (raised from ₹20 lakh by Notification 10/2019); ₹20 lakh in special category states and for those dealing in ice cream, pan masala, and tobacco products
- Interstate supply: Any person making inter-state supply of goods or services (regardless of turnover) must register.
- E-commerce operators and sellers on platforms: Sellers supplying via e-commerce platforms (Amazon, Flipkart, Meesho, etc.) must register regardless of turnover.
- Casual taxable person: Any person making taxable supplies occasionally in a state where they have no fixed place of business.
- Persons liable to pay under reverse charge mechanism (RCM).
- Input Service Distributors (ISD), TDS/TCS deductors under GST.
GST Registration Thresholds at a Glance (2026)
| Business Type | Most States | Special Category States |
|---|---|---|
| Service suppliers | ₹20 lakh | ₹10 lakh |
| Goods suppliers (general) | ₹40 lakh | ₹20 lakh |
| Mixed supply (goods + services) | ₹20 lakh (services threshold applies) | ₹10 lakh |
| E-commerce sellers / interstate supply | Mandatory regardless of turnover | Mandatory |
Documents Required for GST Registration
- PAN of the applicant (individual / business)
- Aadhaar of the proprietor / partners / directors
- Proof of business address: recent electricity bill / property tax receipt / rent agreement (for rented premises) + No Objection Certificate from owner
- Bank account details: cancelled cheque / bank statement with IFSC and account number
- Photograph of the proprietor / authorized signatory
- For companies and LLPs: Certificate of Incorporation, Memorandum of Association, Board Resolution authorising signatory
- For partnerships: Partnership Deed
How to Register on the GST Portal (Step-by-Step)
- Go to gst.gov.in → Registration → New Registration
- Select Taxpayer type, state, and district; enter PAN, email, and mobile number
- Verify with OTPs sent to email and mobile → receive Temporary Reference Number (TRN)
- Log in with TRN and complete Form REG-01: business details, nature of business, address, bank account, authorized signatories, and upload documents
- Submit the application using DSC (for companies/LLPs), e-Sign (Aadhaar-based OTP, for individuals and firms), or EVC
- The GST officer has 7 working days to process the application (or 30 days if Aadhaar authentication was not completed). If approved, the GSTIN (15-digit GST Identification Number) is issued.
- If clarification is sought (Form GST REG-03), respond within 7 working days via Form GST REG-04
Composition Scheme — A Simplified Alternative
Small businesses with aggregate turnover up to ₹1.5 crore (₹75 lakh for service providers and ₹50 lakh for certain special states) may opt for the Composition Scheme instead of regular GST. Under this scheme:
- Pay a fixed percentage of turnover as GST (1% for traders, 5% for restaurants, 6% for service providers)
- File quarterly returns (Form CMP-08) instead of monthly GSTR-1/3B
- Cannot collect GST from customers or issue tax invoices
- Cannot claim Input Tax Credit (ITC)
- Not permitted if making inter-state supply
Penalty for Non-Registration
If a business that is required to register under GST fails to do so:
- Penalty: 10% of tax due or ₹10,000 (whichever is higher) for non-fraudulent cases
- Penalty: 100% of tax due if the failure is intentional / fraudulent
- Tax + penalty + interest is recoverable with retrospective effect from the date registration was required
Disclaimer: This guide is for informational and educational purposes only. GST registration thresholds, the Composition Scheme limits, and penalty provisions are governed by the CGST Act, 2017, SGST Acts, and relevant CBIC notifications, all of which are subject to change. The information here is based on provisions verified as of July 2026. For official GST registration, use gst.gov.in. EligibilityTools.in is not affiliated with the GST Council, CBIC, or the Ministry of Finance. Consult a qualified CA or GST Practitioner for advice specific to your situation.