Key takeaways
- Registration is mandatory once aggregate turnover crosses ₹40 lakh for goods or ₹20 lakh for services (lower limits in some special category states).
- Some businesses must register from the first rupee, such as inter-state sellers of goods and most e-commerce sellers.
- Approval usually comes within 7 working days once Aadhaar authentication is complete; up to 30 days if a physical verification is ordered.
- Voluntary registration can make sense when your customers are GST-registered businesses that want input tax credit.
The turnover thresholds
| Supplier of | Most states (incl. Delhi) | Special category states* |
|---|---|---|
| Goods only | ₹40 lakh | ₹20 lakh |
| Services (or goods + services) | ₹20 lakh | ₹10 lakh |
*The lower limits apply in a few states, mainly in the North-East and hill states; the list varies by state notification, so check before relying on it.
Aggregate turnover means all taxable, exempt and export supplies made under the same PAN across India, including inter-state supplies — not just one branch or one state. It excludes GST itself and inward supplies taxed under reverse charge.
When you must register regardless of turnover
- Inter-state supply of goods — selling goods to a customer in another state. (Service providers making inter-state supplies are exempt until they cross the service threshold.)
- Selling goods through e-commerce platforms such as marketplaces that collect tax at source, subject to limited relaxations for small sellers.
- Casual taxable persons — e.g. setting up a stall at an exhibition in another state.
- Persons liable to pay tax under reverse charge.
- Non-resident taxable persons, input service distributors, and those required to deduct or collect tax at source under GST.
- Agents supplying on behalf of other registered persons.
Documents you'll need
For a private limited company or LLP
- PAN of the company/LLP and certificate of incorporation
- PAN, Aadhaar, photograph, mobile number and email of the directors/partners and authorised signatory
- Board resolution or letter authorising the signatory
- Proof of principal place of business: latest electricity bill or property tax receipt, plus rent agreement or a no-objection letter from the owner
- Bank details: cancelled cheque or bank statement
For a proprietor
PAN and Aadhaar of the proprietor, photograph, address proof of the business premises and bank details.
The process and timeline
- Part A: PAN, mobile and email are verified by OTP and a temporary reference number is generated.
- Part B: business details, promoters, place of business, goods/services (HSN/SAC codes) and documents are filed.
- Aadhaar authentication of the promoters — in many states this now includes biometric verification and a photograph at a GST Suvidha Kendra.
- Officer review: approval generally within 7 working days if authentication succeeds. If the officer orders a physical inspection or raises a query, it can take up to 30 days. Answer queries within the time allowed or the application is rejected.
Most rejections come from a mismatch between the address proof and the address entered, an unclear ownership document, or a slow reply to a query.
Composition scheme: the lighter option
Small businesses can opt for the composition scheme and pay tax at a flat, low rate on turnover with quarterly payments and an annual return. It's available up to ₹1.5 crore turnover for most goods businesses (₹75 lakh in special category states) and ₹50 lakh for service providers. The trade-off: you can't charge GST on invoices, can't claim input tax credit, and generally can't make inter-state sales.
Should you register voluntarily?
If most of your customers are GST-registered businesses, being registered lets them claim credit for the GST you charge — and many large buyers simply won't deal with unregistered suppliers. You also get credit on your own purchases. The cost is monthly or quarterly returns and the discipline that comes with them.