GST or Goods and Services Tax was launched in 1st of July 2017. The objective of GST was to replace all indirect taxes from good and services by the government. This move liberated India from the outdated and complex tax structure. GST is a central government attempt to remove the taxation barrier and create a single market that allows everyone to buy, sell, import, and export within the country.
This article will be your guide towards GST Registration, its purpose, benefits, application, and more. Let’s scroll down.
Overview Of GST Registration
Let's have a glance at GST registration, its implementation, penalty, and more.
| Detail | Information |
|---|
| Full Form | Goods and Services Tax |
| Introduced in India | July 1, 2017 |
| Governing Act | CGST Act, 2017 (Sections 22 & 24) |
| GSTIN / GSTIN number format | GSTIN (15-digit GST Identification Number) |
| Threshold for Goods | ₹40 lakh (normal states), ₹20 lakh (special category states) |
| Threshold for Services | ₹20 lakh (normal states), ₹10 lakh (special category states) |
| Penalty for Non-Registration | 10% of tax due or ₹10,000, whichever is higher |
| Government Registration Fee | ₹0 — completely free |
| Processing Time | 3–7 working days |
Read More: GST Registration Certificate (Form REG-06)
What Is GST Registration? (GSTIN, Eligibility & Threshold Limits 2026)
GST or Goods and Services Tax replaced a fragmented system of indirect taxes that had made doing business in India unnecessarily complicated. Before July 2017, a single business could be dealing with VAT, service tax, excise duty, octroi, and entry tax simultaneously — each with its own returns, rates, and filing calendars. GST unified all of them under one framework: one tax, one return system, one registration number.
When a business registers under GST, it receives a GSTIN — a unique 15-digit GST Identification Number. This number is to your business's tax identity what an Aadhaar is to a citizen's. It allows you to collect GST from customers, issue proper tax invoices, and most importantly, claim Input Tax Credit (ITC) on the GST you have already paid on your own purchases. Without a GSTIN, you are locked out of this credit chain — meaning you pay GST on everything you buy, and you cannot recover any of it.
In 2025, GST compliance has become significantly tighter. Tax authorities are now using UPI transaction data to detect traders who cross registration thresholds without registering, and the CBIC issued revised verification instructions in April 2025 that make registration scrutiny stricter. There has also been a major structural update — GST 2.0, launched in September 2025, revised tax slabs, and introduced reforms aimed at reducing the compliance burden for smaller businesses. The fundamentals of who needs to register and how have not changed, but the environment around registration is more watchful than ever.
Who Needs To Register For GST?
This is where most small business owners get confused, so it helps to think about it in two categories: turnover-based mandatory registration and category-based mandatory registration, regardless of turnover.
Your registration requirement depends on what you sell and which state your business is based in.
| Business Type | Normal States | Special Category States |
|---|
| Supply of Goods only | ₹40 lakh | ₹20 lakh |
| Supply of Services only | ₹20 lakh | ₹10 lakh |
| Supply of both Goods and Services | ₹20 lakh (the lower threshold applies) | ₹10 lakh |
Normal states include Maharashtra, Delhi, Karnataka, Tamil Nadu, Gujarat, West Bengal, Rajasthan, Uttar Pradesh, and most others.
Special category states include Assam, Meghalaya, Mizoram, Tripura, Manipur, Nagaland, Arunachal Pradesh, Sikkim, Uttarakhand, and Himachal Pradesh.
One important nuance: aggregate turnover is calculated on a PAN-India basis, not state-by-state. If you run a small shop in Delhi and a small unit in Pune under the same PAN, the turnovers of both are added together. Crossing ₹40 lakh combined — even if each unit is below the limit — makes registration mandatory.
Category-Based Mandatory Registration (Section 24, CGST Act)
Certain businesses must register regardless of their turnover. This catches a lot of small business owners who assume they are too small to need GST.
You must register if you:
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Sell goods or services to customers in another state (even a single interstate sale triggers this).
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Sell on e-commerce platforms like Amazon, Flipkart, Meesho, Swiggy, Zomato, or similar — no turnover threshold applies.
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Export goods or services — GST registration is required to file zero-rated returns.
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Pay tax under the Reverse Charge Mechanism (RCM).
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Are a casual taxable person — operating at trade fairs, exhibitions, or pop-up stalls in states where you have no fixed place of business.
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Provide online services from outside India to customers inside India.
The e-commerce rule deserves particular emphasis. If you are a home baker selling through an online marketplace, a handicraft seller on Etsy or Flipkart, or a freelancer with foreign clients, the turnover limit does not protect you. GST registration is mandatory from the very first rupee of sale.
Voluntary GST Registration: Benefits of Registering Below Threshold
If your turnover is below the threshold, you can still register voluntarily. This is often a smart business decision. A GSTIN lets you issue proper tax invoices, claim ITC on all your purchases, do business across state lines, and present as a more credible vendor to larger companies that only work with GST-registered suppliers.
The downside of voluntary GST registration is compliance: once registered, you must file returns and pay GST on your sales, regardless of how small they are. There is no provision to say your sales are below the taxable limit after you have taken registration. A freelance designer earning ₹8 lakh who voluntarily registers must still file and pay GST on every invoice.
Who Must Register for GST Mandatorily?
Some categories of people and businesses that are required to mandatorily register under the GST mechanism are as follows:
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Inter-state suppliers.
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Casual Taxable Persons.
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Persons liable under Reverse Charge.
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Non-Resident Taxable Persons.
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E-commerce operators and people operating using them.
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Input Service Distributors.
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Persons required to deduct TDS.
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Persons required to deduct TCS.
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Persons notified by the government of India.
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Persons supplying online information and database access or retrieval services.
Also Read On Choosing the Wrong GST Type Can Cost You – Learn All Types Now
GST Registration For Freelancers & Consultants
Freelancers and consultants are considered service providers under the Central Goods and Services Tax Act (CGST) of 2017. They are required to register for GST if their total annual turnover goes beyond Rs 20 lakh (Rs 10 lakh for special category states). However, please note that such service providers are required to register under the GST mechanism irrespective of their annual turnover if they provide inter-state services or operate through e-commerce platforms. After registration, they usually charge around 18% of GST for most of the services they provide.
GST Registration For NRI & Non-Resident Taxable Persons
Foreign businesses or individuals who supply goods or services in India without a fixed business establishment are referred to as a Non-resident Taxable Person (NRTP). NRTPs are required to compulsorily apply for GST registration, and this type of registration is temporary, which usually goes up to 90 days (extendable).
GST Registration for E-Commerce Sellers (Amazon, Flipkart, Meesho)
Under the CGST 2017, sellers who supply their goods or services through e-commerce platforms like Amazon, Flipkart, Meesho, etc., are legally mandated to apply for e-commerce GST registration (Amazon/Flipkart/Meesho), irrespective of their annual turnover (usually the limit is set at Rs 20 lakh). After successful registration, e-commerce sellers can collect GST on their sold supplies and file regular returns in compliance with the law.
GST Composition Scheme: Who Can Register & What Are the Limits?
A simplified option for small businesses with turnover up to ₹1.5 crore for goods (₹50 lakh for services). Under the Composition Scheme ₹1.5 crore limit, registered businesses pay a fixed percentage of turnover as tax, file one quarterly return, and face significantly lower compliance burden. Tax is to be paid at a lower rate based on a business’s turnover. i.e., 1% for traders, 5% for restaurants that don’t serve alcohol, and 6% for service providers. The trade-off is just that you cannot claim ITC, cannot make interstate sales, and cannot supply through e-commerce operators.
Other Types Of GST Registration
GST Registration is just an umbrella; many different types fall under it. You need to understand that not every business falls into the same category. So, to avoid any future rejection, which we will discuss next, let’s understand the different types of GST registration. Some of the types are described above, and some others are as follows:
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Regular Taxpayer: The standard category for most businesses. You collect GST from customers, file monthly or quarterly returns (GSTR-1 and GSTR-3B), and can claim full ITC. Applicable when turnover exceeds the threshold or when registration is otherwise mandatory.
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Casual Taxable Person: For businesses that supply in states where they have no fixed place of business — exhibition sellers, pop-up stall operators, event vendors. Registration is granted for a specific period, advance tax must be deposited, and the registration expires after 90 days.
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Input Service Distributor (ISD): Applicable to businesses with multiple branches that receive services at a central office and need to distribute the ITC to their various units.
Benefits Of GST Registration
For a first-time entrepreneur, GST registration can feel like just another compliance requirement. The benefits become clearer once you are operational.
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ITC/Input Tax Credit: Every rupee of GST you pay on your purchases — raw materials, office rent, equipment, software — can be offset against the GST you collect from customers. For businesses with significant input costs, this can reduce the effective tax burden substantially.
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Legal ability to do interstate business: Without GST registration, an interstate sale is technically non-compliant. A GSTIN removes this restriction and opens the entire country as your market.
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Business credibility: Most established companies — including government departments, large corporates, and e-commerce platforms — will not onboard an unregistered vendor. Your GSTIN is proof that you are a legitimate, traceable business.
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E-commerce eligibility: You cannot list and sell on major e-commerce platforms without a GSTIN. There are no exceptions.
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Government tenders and contracts: GST registration is a prerequisite for most government procurement processes, including those on the GeM portal.
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Easier bank financing: Banks and NBFCs use GST returns as a proxy for revenue verification when evaluating business loan applications. Regular filers with clean GST returns tend to get faster approvals and better rates.
Documents Required For GST Registration (Proprietor, Company, LLP, Partnership)
The documents vary slightly depending on your business structure, but the core checklist is the same for most applicants. The GST portal accepts documents in JPG or PDF format with a maximum file size of 100 KB per document — a small but commonly missed technical requirement that causes unnecessary delays.
For a Proprietorship
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PAN card of the proprietor.
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Aadhaar card of the proprietor (linked to your active mobile number — mandatory for Aadhaar-based e-KYC).
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Photograph of the proprietor.
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Address proof of the business premises (electricity bill, municipal khata, property tax receipt — must be recent, within 3 months).
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Rent agreement or NOC from the property owner if the premises are rented or shared.
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Bank account proof — cancelled cheque, first page of the passbook, or recent bank statement showing name, account number, and IFSC.
For a Partnership Firm
Everything above, plus:
For a Private Limited Company or LLP
Everything above, plus:
Bank account linkage within 30 days: As per a GSTN advisory issued in November 2025, valid bank account details must now be provided within 30 days of registration or before filing your first GSTR-1 — whichever comes earlier. Missing this step will result in account suspension.
How To Apply For GST Registration Online: Step-by-Step
GST registration is done entirely online through the official portal. There is no government fee. If your documents are in order, registration is approved in 3–7 working days. Aadhaar-authenticated applications are typically processed within 3 working days; others may take longer depending on officer review.
Step 1: Visit the GST portal. Click on "Services", then "Registration", then "New Registration."
Step 2: Fill Part A of the form. Select your taxpayer type (Regular, Composition, etc.), state, and district. Enter your PAN, email address, and mobile number. All three are verified via OTP before you can proceed. Once verified, a Temporary Reference Number (TRN) is generated and sent to your email and mobile.
Step 3: Complete Part B using your TRN. Log back in using your TRN within 15 days (the TRN expires after that). Part B covers all the substantive details: business name, constitution, place of business, business activities (HSN / SAC codes and NIC codes), bank details, authorised signatories, and promoter/partner/director information.
Step 4: Upload your documents. Upload each document in the required format (JPG or PDF, max 100 KB). Blurred, cropped, or expired documents are a primary reason for delays and clarification notices. Use a flatbed scanner if available, or a scanning app with sufficient resolution.
Step 5: Aadhaar authentication. You can choose Aadhaar-based e-KYC for faster processing. This sends an OTP to the Aadhaar-linked mobile number. If your Aadhaar is not linked to an active mobile number, you must go through the Aadhaar biometric / GSK / GST Suvidha Kendra — a slower route.
Step 6: Submit using DSC or EVC Companies and LLPs must submit using a Digital Signature Certificate (DSC). Proprietors and partners can submit using Electronic Verification Code (EVC) via Aadhaar OTP or net banking.
Step 7: Receive your ARN. On successful submission, you receive an Application Reference Number (ARN). This is your acknowledgement that the application has been filed.
Step 8: Physical verification (if triggered). As per CBIC instructions issued in April 2025, physical verification of the business premises may be triggered for certain applications. This is now subject to stricter oversight — it requires prior approval from a Joint Commissioner and must be photo-documented. If verification is ordered, an officer will visit your registered business address. Being present and having your documents accessible makes this a brief formality.
GST Registration Certificate Download (Form REG-06) & GSTIN Verification
The GST portal allows people not only to download the softcopy of the GST registration certificate but also to verify the GST registration of an establishment using their GSTIN numbers. Both processes are described below for one’s reference.
GST Registration Certificate Download
Step 1: Please visit the official website of the GST portal and log in using your registered username and password.
Step 2: After logging in, navigate to the ‘Services’ option, and then under the ‘User Services’ section, you will find the ‘View or Download Certificate’ option.
Step 3: After clicking on the option, the system will redirect you to the GST Registration Certificate page labeled as Form GST REG-06.
Step 4: Click on the download icon, after which the certificate will be stored in your device in PDF format.
GST Verification
Step 1: Please visit the official website of the GST portal and navigate to the option concerning ‘Search Taxpayer’
Step 2: Click on the ‘Search by GSTIN’ option and then enter the GST Identification Number of the business that you would like to verify the details of.
Step 3: Ensure to carefully enter the 15-digit number, after which the system will show you the key details of the business. Cross-check the details provided by the portal with the details displayed by the business to ensure the authenticity of the business entity in question.
How To Track GST Application Status Using ARN Number?
One can track the status of their applications by following some simple steps. The process of ARN tracking / application status is as follows:
Step 1: Please visit the official website of the GST portal.
Step 2: After logging in, navigate to the ‘Services’ option, and then under the ‘User Services’ section, you will find the ‘Track Application Status’ option.
Step 3: The portal will give you different options to track the status. Choose the ‘ARN (Application Reference Number)’ option.
Step 4: Enter your ARN number, and the system will show you the status of your application as either ‘Processing’, ‘Approved’, or ‘Rejected’.
GST 2.0: Fast-Track 3-Day Approval (Rule 14A) & Aadhaar Biometric Authentication
The Central Goods and Service Tax Act of 2017 went through some changes wherein new amendments were made in the existing law, like the addition of Fast-Track approval Rule 14A. Under this new rule, those applicants who have completed their Aadhaar authentication will be able to get faster GST registration approval in just 3 working days.
Note that the faster approval heavily depends upon successful Aadhaar authentication, which means that if the authorities find any discrepancies, even if minor, a business entity won’t be able to enjoy the benefits that the new rule brings. Rule 14A is not just about faster and quicker processing, but also about allowing only verified and authenticated businesses to reap the benefits of rules and sections like this one.
GST Registration Limit — Calculating Your Aggregate Turnover
Understanding how "turnover" is calculated for GST threshold purposes is important — it is broader than just your sales figure.
Aggregate turnover includes:
Aggregate turnover does NOT include:
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CGST, SGST, IGST, or GST Compensation Cess
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Inward supplies taxable under Reverse Charge (you are not the supplier for those).
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Non-GST supplies (alcohol, petroleum products not yet under GST).
This has a practical implication. If you run a business that sells both taxable goods and some exempt goods (say, unbranded food items alongside other products), both categories count toward your aggregate turnover for threshold purposes, even though you do not charge GST on the exempt items.
GST Registration Penalties For Non-Compliance 2026
The Indian tax authority has significantly strengthened its detection capability. As of 2025, UPI transaction data is being actively used to identify traders whose payment volumes suggest they have crossed the threshold but have not registered. Notices are being issued based on this data.
| Offence | Penalty |
|---|
| Failure to register despite being liable | GST registration penalty (₹10,000 / 10% of tax), meaning 10% of the tax due, subject to a minimum of ₹10,000. |
| Deliberate tax evasion by not registering | 100% of the tax due |
| Late registration (registered but after the due date) | 18% annual interest on the unpaid tax amount, in addition to the penalty. |
The 30-day clock for registration starts from the day your aggregate turnover crosses the threshold in a financial year. Missing this deadline has consequences that compound over time — the penalty is calculated on the full tax that should have been collected and remitted during the period of non-registration.
GST Registration Threshold Limits: State-Wise Table (₹10L / ₹20L / ₹40L)
Here is an overview of the GST threshold across various states in India.
| State / Category | Goods Threshold | Services Threshold |
|---|
| Delhi, Maharashtra, Karnataka, Tamil Nadu, Gujarat, Haryana, UP, WB, Rajasthan, and most others | ₹40 lakh | ₹20 lakh |
| Assam, Meghalaya, Mizoram, Tripura, Manipur, Nagaland, Arunachal Pradesh, Sikkim | ₹20 lakh | ₹10 lakh |
| Uttarakhand, Himachal Pradesh | ₹20 lakh | ₹10 lakh |
| J&K and Ladakh | ₹40 lakh | ₹20 lakh (opted for higher limit) |
Read More: Simplified GST Registration Scheme
What Are The Common Reasons GST Applications Get Rejected or Delayed?
There are many reasons your GST application might get rejected or delayed. Understanding them before starting the process keeps the entire journey smooth and hassle-free.
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Aadhaar not linked to an active mobile number: The most common blocker. Without this, Aadhaar-based e-KYC fails, and you are routed to slower biometric verification.
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Blurred or cropped document scans: The GST portal's document quality threshold is strict. An unreadable electricity bill or a photograph where the face is partially cut off will trigger a clarification notice.
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Address proof older than 3 months: An electricity bill from 8 months ago will not be accepted. Use the most recent utility bill.
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Mismatch between business name and PAN: The name entered in the registration form must exactly match the name on the PAN card — including spacing, initials, and punctuation.
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Wrong HSN or SAC codes: Entering incorrect activity codes for your business affects scheme eligibility and can trigger further scrutiny during the registration review.
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Rented premises without NOC: If your business address is a property you do not own, you need either a rent agreement or a No Objection Certificate (NOC) from the property owner. Missing this is a common rejection reason.
After Registration, What Do You Need To Do?
Getting your GSTIN is just the beginning of the road; the destination is still left. There is additional work that keeps your GST Registration active and your credit clean. Let's have a look at these post-registration compliance.
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File GSTR-1 monthly or quarterly: GSTR-1 is your outward supply return — a record of all sales invoices. Monthly filing applies if your turnover exceeds ₹5 crore; quarterly (QRMP scheme) applies below that.
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File GSTR-3B monthly or quarterly: GSTR-3B is your summary return where you declare your tax liability and claim ITC. It also triggers your tax payment. From July 2025, GSTR-3B cannot be filed more than three years after the original due date — pending returns must be filed before that window closes.
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Issue GST-compliant invoices: Every taxable sale must be accompanied by a properly formatted tax invoice that includes your GSTIN, HSN/SAC code, tax rate, and tax amount. Non-compliant invoices are not eligible for ITC by your buyer and can attract audit attention.
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Update your bank account details within 30 days: Per the November 2025 GSTN advisory, failure to link a valid bank account within 30 days of registration — or before your first GSTR-1 filing — will result in registration suspension.
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File annual return (GSTR-9): An annual summary return consolidating your full-year activity. Mandatory for businesses above ₹2 crore turnover; optional for smaller businesses.
Why Choose Jaagruk Bharat for GST Registration?
The GST portal is free to use — and for applicants with clean, straightforward documents, it works reasonably well. Where first-time applicants consistently run into difficulty is with document formatting, HSN/SAC code selection, Aadhaar authentication issues, and responding to officer queries after submission. To verify your GSTIN, complete your application with Jaagruk Bharat.
Jaagruk Bharat has facilitated services for over 500,000 citizens across India. Our team handles the entire process: document checklist review, portal form completion, correct HSN/SAC code mapping, submission, ARN tracking, and handling any clarification notices from the GST officer. Your GSTIN in 48 hours, completely online, no office visit required.
Conclusion
GST registration is not a choice but a necessity for businesses in India. The threshold is very easy to understand, and the process is fully automated. UPI data, e-invoices data check, portal analytics, and more such ways are used to keep non-compliant businesses in check.
GST Registration is a very simple process. With complete documents and compliance, the entire process is as simple as it can be.
Visit Jaagruk Bharat and stay aware of all GST-related news, GSTIN verification, step-by-step process, and more. For more details, queries, or to share your views, visit the Jaagruk Bharat Community Page. We would love to hear from you!
