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GST Registration in India: Who Must Register, Thresholds, and the Process
GST combined many indirect taxes into one on 1 July 2017. If you sell goods or provide services in India, GST may apply to you. This guide covers who must register, the thresholds for FY 2026-27, and the step-by-step process on the GST portal.
Do you need to register for GST?
GST registration is mandatory if any of these conditions apply to your business.
Turnover-based thresholds for FY 2026-27:
| Business type | Threshold |
|---|---|
| All states (goods) | ₹40 lakh per year |
| Special category states (goods) | ₹20 lakh per year |
| Services (all states) | ₹20 lakh per year |
| Interstate supply (any goods or services) | No threshold — mandatory from the first rupee |
| E-commerce operator or aggregator | No threshold — mandatory from the first rupee |
The special category states are Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, and Puducherry.
If you are a small service provider earning less than ₹20 lakh per year and operate within one state, you may be eligible for the composition scheme.
Other situations that require mandatory GST registration:
- You make any interstate supply of goods or services. Even one sale to another state triggers the requirement.
- You operate an e-commerce portal or provide services through one. Uber, Swiggy, Zomato, Amazon, and Flipkart all require GST registration.
- You are a casual taxable person or non-resident taxable person making supplies in India.
- You are liable to pay tax under the reverse charge mechanism.
- Your annual turnover exceeds the threshold even by one rupee.
The composition scheme — lower compliance for small businesses
The composition scheme under Section 10 of the CGST Act is for small businesses. You file GST every quarter instead of every month. You pay a simple flat rate instead of the full rates.
Composition scheme eligibility FY 2026-27:
- Turnover up to ₹1.5 crore (₹75 lakh for restaurants).
- Registered in one state only.
- Not engaged in inter-state supplies.
- Not engaged in e-commerce (except for services through e-commerce operators under Section 9(5)).
Composition tax rates:
| Business type | Rate |
|---|---|
| Manufacturers (not restaurants) | 0.5% CGST + 0.5% SGST = 1% |
| Restaurants (not serving alcohol) | 2.5% CGST + 2.5% SGST = 5% |
| Other services | 3% CGST + 3% SGST = 6% |
| Mixed suppliers | 3% CGST + 3% SGST = 6% |
You cannot claim input tax credit (ITC) under the composition scheme. This means you pay GST on your sales but cannot reduce it by the GST you paid on your purchases.
Documents required for GST registration
Before starting the online process, gather these:
For individuals and sole proprietors:
- PAN card (mandatory — both individual and business PAN if separate).
- Aadhaar card of the applicant.
- Bank account proof (cancelled cheque or bank statement with account number and IFSC).
- Address proof of the principal place of business (electricity bill, rent agreement, municipal khata copy).
- Photograph of the applicant.
- Email address and mobile number (both must be verified via OTP).
For companies, LLPs, and partnerships:
- PAN of the entity.
- Certificate of Incorporation or Partnership deed.
- MOA and AOA (for companies).
- Bank account proof.
- Address proof of the registered office.
- PAN and Aadhaar of the authorized signatory.
Digital signature requirement: For companies and LLPs, a Class 3 digital signature certificate (DSC) is required to sign the application electronically.
Step-by-step registration process on the GST portal
Step 1 – Visit the GST portal
Go to gst.gov.in and click Register Now under the taxpayer services section. Select New Registration.
Step 2 – Fill in Part A of Form GST REG-01
You will be asked for your legal name (as on PAN, must match exactly), PAN of the business or individual, email address, and mobile number (must be linked to Aadhaar for OTP).
Submit Part A. You will receive an OTP on your mobile and email. Enter it to proceed. The portal will generate a Temporary Reference Number (TRN) valid for 15 days.
Step 3 – Fill in Part B of Form GST REG-01
Using the TRN, log back in and complete your business details, principal place of business address, additional places of business if any, details of promoters or partners, bank account details, and state-specific information if applicable.
Upload the required documents in the specified format (PDF for certificates, JPEG for photos — all files under 10 MB).
Step 4 – Verification and ARN
Submit the form using one of these methods:
- Electronic verification with Aadhaar OTP (fastest for individuals and sole proprietors).
- Digital signature certificate (required for companies and LLPs).
- E-signature using Aadhaar (for other entities).
On successful submission, you will receive an Application Reference Number (ARN) on your email and mobile.
Step 5 – Processing
The GST officer has 30 days to process the application. For most registrations, the certificate of registration (Form GST REG-06) is issued within 1–3 working days if all documents are in order.
If additional information is needed, the officer will issue a Form GST REG-03 asking for clarification. You must respond within 7 working days.
Step 6 – GSTIN and login
Once approved, you receive your 15-digit GST Identification Number (GSTIN) in the format: 27AABCU9603R1ZM (state code + PAN + entity code + checksum digit).
Use this to log in to the GST portal and file your returns.
What to do after you receive your GSTIN
Register your business details:
Log in to the portal and update your details in the Profile Section. Add your business activities (HSN codes for goods, SAC codes for services), dates of commencement, and bank account details.
Set up e-way bill generation (if applicable):
If you transport goods worth more than ₹50,000 in a single transaction, you need an e-way bill. Generate it at ewaybillgst.gov.in.
Understand your return filing schedule:
| Return | Frequency | Due date |
|---|---|---|
| GSTR-1 (sales) | Monthly or Quarterly | 11th of next month (monthly) or 13th of next quarter (composition) |
| GSTR-3B (summary return) | Monthly or Quarterly | 20th of next month (monthly) or 22nd or 24th of next quarter (by state) |
| GSTR-9 (annual return) | Yearly | 31st December of next financial year |
Composition dealers file quarterly GSTR-1 and GSTR-3B only.
Input Tax Credit — how it works
A registered business can claim input tax credit (ITC). This means the GST you paid on buys can be set off against the GST you collect on sales.
Here is an example:
- You buy raw materials for ₹1,18,000 (including ₹18,000 GST at 18%).
- You sell finished goods for ₹2,36,000 (including ₹36,000 GST at 18%).
- You owe ₹36,000 GST. But you can subtract the ₹18,000 you already paid on inputs.
- Net GST you pay: ₹36,000 − ₹18,000 = ₹18,000.
ITC cannot be claimed on:
- Motor vehicles for personal use.
- Food, beverages, and hospitality services.
- Membership of clubs, gyms, or health centres.
- Goods lost, stolen, or written off.
GST rates — current structure (effective 2025-09-22)
The GST Council revised the rate structure on 22 September 2025. The current slabs are:
| Rate | Examples |
|---|---|
| 0% | Fresh fruits, vegetables, milk, bread, education, healthcare |
| 5% | Sugar, tea, edible oil, economy rail travel, small restaurants |
| 18% | Computers, smartphones, professional services, financial services |
| 40% | Luxury cars, pan masala, tobacco products, aerated beverages |
The 12% and 28% slabs were abolished in the September 2025 revision. These rates must not appear as current rates anywhere.
Penalties for not registering
Operating without GST registration when it is mandatory is an offence under the CGST Act. Penalties are:
- A fine of up to 10% of the tax liability (minimum ₹10,000).
- If the person deliberately evaded tax: 100% of the tax liability as penalty.
- Imprisonment for up to 5 years in serious evasion cases.
Sources
- CGST Act 2017, Section 22 — Persons liable for registration (verified 2026-10-08)
- CGST Act 2017, Section 10 — Composition scheme (verified 2026-10-08)
- GST portal — registration process (verified 2026-10-08)
- 56th GST Council meeting — rate revision September 2025 (verified 2026-10-08)