Who Must Register for GST — Threshold and Mandatory Cases
GST registration becomes mandatory when a business's annual aggregate turnover exceeds the prescribed threshold in a financial year. The turnover threshold differs based on the type of supply and the state of operation. For suppliers of goods only, the threshold is Rs.40 lakh. For service providers and mixed supply businesses (supplying both goods and services where the service component dominates), the threshold is Rs.20 lakh. For businesses in special category states — the eight northeastern states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura), Himachal Pradesh, and Uttarakhand — the thresholds are Rs.20 lakh for goods and Rs.10 lakh for services.nnAnnual aggregate turnover for GST registration purposes includes: taxable supplies, exempt supplies, exports, inter-state supplies, and supplies made under RCM as a recipient. It does not include the value of inward supplies under RCM. The aggregate is computed across all registrations under the same PAN across India — a business operating from two states under two GSTINs must aggregate both states' turnover when checking threshold compliance.nnBeyond the threshold-based mandatory registration, several categories of businesses must register regardless of turnover. These include: persons making inter-state taxable supplies of goods (services have a different rule — intra-state services below threshold need not register even for interstate); e-commerce operators and persons supplying goods through e-commerce operators; persons liable to deduct TDS under Section 51; persons liable to collect TCS under Section 52 (e-commerce operators); non-resident taxable persons making supplies in India; Input Service Distributors; and persons who were registered under any earlier law (VAT, service tax, excise) and whose registration was in force before GST introduction.
| Category | Threshold | Mandatory? |
|---|---|---|
| Goods supplier — normal states | Rs.40 lakh annual turnover | Mandatory above threshold |
| Service provider — normal states | Rs.20 lakh annual turnover | Mandatory above threshold |
| Goods supplier — special category states | Rs.20 lakh annual turnover | Mandatory above threshold |
| Service provider — special category states | Rs.10 lakh annual turnover | Mandatory above threshold |
| Inter-state goods supplier | No threshold | Compulsory regardless of turnover |
| E-commerce operator or seller on platform | No threshold | Compulsory regardless of turnover |
| Non-resident taxable person | No threshold | Compulsory regardless of turnover |
| RCM recipient liable to pay GST | No threshold | Compulsory if regularly paying RCM |
| Casual taxable person | No threshold | Compulsory for each temporary registration |
Documents Required for GST Registration
The document requirements for GST registration vary by the type of business entity. Having all documents ready before beginning the online application on gst.gov.in significantly speeds up the process and prevents the application from being held in a deficiency queue.nnFor a proprietorship, the documents required are: PAN card of the proprietor, Aadhaar card of the proprietor, proof of business registration (trade licence, shop act registration, or any government document showing the business), bank account details (cancelled cheque or bank statement), photograph of the proprietor, and proof of principal place of business (owned — property tax receipt or electricity bill in the proprietor's name; rented — rent agreement plus utility bill in landlord's name; shared/coworking — NOC from the premises owner plus utility bill).nnFor a private limited company, the documents required are: PAN of the company, Certificate of Incorporation from MCA, Memorandum of Association and Articles of Association, PAN and Aadhaar of all directors, proof of registered office address, bank account details of the company, and a Board Resolution authorising the primary signatory to apply for GST registration. For LLPs, the LLP Agreement and Certificate of Registration from the MCA replace the MOA/AOA. For partnership firms, the partnership deed and PAN of all partners are required. For HUFs, the HUF deed and PAN of the Karta are required.
GST Registration Process — Step-by-Step Online Application
GST registration is a fully online process on the GST portal at gst.gov.in. The application is filed in Form REG-01 and a GSTIN (Goods and Services Tax Identification Number) is typically issued within 7 working days if all documents are in order and no clarification is required.nnStep 1: Visit gst.gov.in and navigate to Services then Registration then New Registration. Step 2: Enter basic details — taxpayer type (regular, composition, non-resident, etc.), state, district, legal name of business as per PAN, PAN, email address, and mobile number. An OTP is sent to both email and mobile for verification. Step 3: A Temporary Reference Number (TRN) is generated. Note it — it is required to continue the application later. Step 4: Log in using the TRN and complete the full application in Form REG-01 covering: business details, promoter/partner details with PAN and Aadhaar, authorised signatory details, principal place of business address and proof, additional places of business if any, goods and services description with HSN/SAC codes, and bank account details. Step 5: Upload all required documents as scanned PDFs. Step 6: Submit the application using DSC (for companies and LLPs) or EVC (OTP verification for others).nnAfter submission, a GST officer may approve the application within 7 working days, or issue a clarification notice in Form REG-03 if documents are insufficient or queries arise. The applicant must respond in Form REG-04 within 7 working days. If approved, the GSTIN is issued in Form REG-06 and is valid from the date of application or liability to register, whichever is earlier.
GSTIN Structure and Multiple GST Registrations
The GSTIN (Goods and Services Tax Identification Number) is a 15-digit alphanumeric code assigned to every GST-registered person. The structure encodes key information: the first two digits represent the state code (e.g., 07 for Delhi, 27 for Maharashtra, 29 for Karnataka), digits 3 to 12 are the taxpayer's PAN, digit 13 is an entity number (for multiple registrations under the same PAN in the same state), digit 14 is a default 'Z', and digit 15 is a checksum character.nnA business operating in multiple states must obtain a separate GST registration in each state where it has a place of business (office, warehouse, factory, or any fixed establishment). Each state registration carries a separate GSTIN. A company with offices in Delhi, Mumbai, and Bengaluru will have three GSTINs — one per state. All three GSTINs are linked to the same PAN. A single entity can have up to 45 GST registrations (one per state/UT plus some special categories) linked to the same PAN.nnA business with two distinct businesses at the same address can obtain two separate GST registrations for the same state if the two businesses have different business verticals — defined as a distinguishable component that provides a range of products or services and is independently managed. This voluntary separate registration by business vertical allows ITC to be maintained and utilised separately for each vertical, which is useful for conglomerates with both taxable and exempt business activities.
GST Registration Cancellation and Suspension
GST registration can be cancelled voluntarily by the taxpayer or suo motu by the GST officer. Voluntary cancellation (Form REG-16) is filed when the business's turnover falls below the threshold, the business is closed or discontinued, the business merges with another entity, or the taxpayer switches from regular to composition (which requires fresh composition registration). The cancellation takes effect from the date requested or the date of the officer's order.nnSuspension of GST registration is a measure taken by the GST officer when non-compliance is detected — typically consecutive GSTR-3B non-filing for two or more periods. A suspended GSTIN loses the ability to generate e-way bills, make taxable supplies, and file returns. The suspended taxpayer must file a Show Cause Notice response and clear pending returns to get the suspension lifted. Businesses with suspended registration that continue to make supplies are subject to significant penalties.nnBefore cancellation of registration, the taxpayer must file all pending returns (GSTR-1, GSTR-3B, GSTR-9), pay all outstanding tax liability including interest and penalty, and reverse all ITC taken on closing stock (ITC on unsold inventory must be reversed at the time of cancellation as the goods are no longer going to be used for taxable supply). The final return GSTR-10 must be filed within 3 months of the effective date of cancellation — failure to file GSTR-10 results in continued compliance obligations and potential penalties.
