GST Registration: Who Needs It and When

Understand the turnover thresholds, who must register, and why many businesses choose to register voluntarily.

GST registration is one of the first questions every new business asks. The answer depends on your turnover, what you sell and where you sell it.

When GST registration is mandatory

Registration becomes compulsory once your turnover crosses the prescribed threshold, which differs for goods and services and varies in some states. It is also mandatory regardless of turnover if you supply goods across state borders or sell through an e-commerce platform.

Common cases where you must register

• Turnover above the threshold for your state and business type
• Interstate supply of goods
• Selling through e-commerce marketplaces
• Businesses liable to pay tax under reverse charge
• Casual taxable persons and non resident taxable persons

Why many businesses register voluntarily

Even below the threshold, plenty of businesses choose to register. A GSTIN lets you claim input tax credit on your purchases, which reduces your cost. It also makes you a more attractive supplier, since registered buyers prefer vendors who can pass on input credit, and it adds credibility with customers and partners.

What you get

On approval you receive a unique fifteen digit GSTIN. You can then legally charge GST on your invoices, claim input tax credit, and file your periodic returns.

What happens after registration

Registration is only the start. You must file returns regularly, usually GSTR-1 and GSTR-3B, along with an annual return. Missing returns attracts a daily late fee and can block input credit for your customers, so it is worth setting up a filing routine from the beginning.