GST Registration: Thresholds, Compulsory Cases and the Documents You Need

The thresholds

For exclusive suppliers of goods, forty lakh rupees of aggregate annual turnover. For suppliers of services, or of goods and services together, twenty lakh rupees. In the special category States — Manipur, Mizoram, Nagaland and Tripura — the figures are twenty lakh and ten lakh respectively.

Aggregate turnover is PAN-wide across every State, and includes taxable, exempt, export and inter-State supplies between distinct persons. It excludes inward supplies taxed under reverse charge and the taxes themselves.

When turnover does not matter

Section 24 requires registration irrespective of turnover for:

The inter-State goods rule catches small manufacturers and traders who sell one consignment across a State border.

• Persons making inter-State taxable supplies of goods.
• Casual taxable persons and non-resident taxable persons.
• Persons liable to pay tax under reverse charge.
• Electronic commerce operators, and persons supplying through them in specified cases.
• Persons required to deduct tax at source under Section 51 or collect it under Section 52.
• Input service distributors.
• Persons supplying online information and database access or retrieval services from outside India to an unregistered person in India.

The documents

PAN of the business and of the authorised signatory, proof of constitution such as a partnership deed or certificate of incorporation, proof of principal place of business such as an electricity bill with a rent agreement or ownership document, bank account details, photographs of the proprietor or partners or directors, and a digital signature or Aadhaar authentication for the signatory.

Aadhaar authentication substantially shortens processing. Without it, physical verification of premises is more likely.

Timing and consequences of delay

Application must be made within thirty days of becoming liable. Registration is effective from the date of liability if applied within that window, and from the date of grant if applied later — which means supplies made in the gap carry tax you cannot pass on and credit you cannot claim.

Operating without registration where required attracts a penalty of ten thousand rupees or the tax evaded, whichever is higher, under Section 122.

Frequently asked questions

### What is the GST registration limit?

Forty lakh rupees of aggregate annual turnover for exclusive suppliers of goods and twenty lakh for service providers, halved in the special category States. Several circumstances under Section 24 require registration regardless of turnover.

### Do I need GST registration to sell online?

Generally yes. Persons supplying through an electronic commerce operator required to collect tax at source must register irrespective of turnover, though a limited exemption now exists for small intra-State suppliers on specified platforms.

### Can I register voluntarily below the threshold?

Yes, and many businesses do, because registration allows you to claim input tax credit and to issue tax invoices your B2B customers can claim against. The trade-off is full compliance: returns, reconciliation and the associated cost.

### Is separate registration needed for each State?

Yes. GST registration is State-specific. A business operating in four States takes four registrations under the same PAN, and supplies between them are treated as supplies between distinct persons.