When does your business actually need GST registration?

For suppliers of goods the aggregate turnover threshold is generally ₹40 lakh in a financial year, and ₹20 lakh for suppliers of services, with lower limits for special category states. Aggregate turnover is computed on an all-India PAN basis and includes exempt supplies and exports, not just taxable sales.

Registration is compulsory regardless of turnover in several cases: inter-state taxable supply of goods, casual and non-resident taxable persons, persons liable under reverse charge, e-commerce operators and most persons supplying through them, and agents supplying on behalf of others.

Voluntary registration can be worthwhile even below the threshold — it allows input tax credit and is often expected by corporate customers — but it also brings the full monthly and annual return calendar, so it is a decision to take deliberately.

Getting this wrong is expensive in both directions: registering unnecessarily creates permanent compliance cost, while registering late means tax payable on past supplies without the ability to collect it from customers.

Official sources

GST portal — registration application user manual: https://tutorial.gst.gov.in/userguide/registration/Apply_for_Registration_Normal_Taxpayer.htm CBIC GST — frequently asked questions (registration): https://cbic-gst.gov.in/faq.html