Every business that crosses the GST turnover threshold must register under GST
— even if no tax is payable. This guide explains the mandatory turnover limits,
who must register regardless of turnover, who is exempt, and the step-by-step process to register on the GST portal in 2026.
GST — 2026
GST Registration — When Mandatory
Turnover Threshold
| Goods — Normal States | ₹40,00,000 |
| Services — Normal States | ₹20,00,000 |
| Goods — Special Category States | ₹10-20 Lakh |
Must Register Regardless of Turnover
| ● Inter-state supplier (any turnover) |
| ● E-commerce seller (any turnover) |
| ● Reverse Charge Mechanism payer |
| ● Casual taxable person |
| ● Non-resident taxable person |
Andhra Pradesh (Srikakulam): ₹40L for goods, ₹20L for services.
What Is GST Registration?
GST registration is the process by which a business obtains a GSTIN (Goods and Services Tax Identification Number) — a 15-digit unique ID. Without this number, you cannot legally collect GST from customers, claim Input Tax Credit (ITC), or file GST returns.
Registration is not optional once you cross the prescribed limits. Unregistered businesses that are required to register face penalties, retrospective tax demands and interest.
Threshold Limits — When Registration Is Mandatory
The turnover threshold determines whether you must register. Note that aggregate turnover means the combined turnover of all businesses under a single PAN across India.
For Goods (Products / Manufacturing / Trading)
| State Category | Annual Aggregate Turnover Exceeds |
|---|---|
| Normal states (most Indian states) | ₹40,00,000 |
| Special category states (Manipur, Mizoram, Nagaland, Tripura) | ₹20,00,000 |
| Other hill/special states (Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Himachal Pradesh, J&K, Puducherry) | ₹20,00,000 |
The ₹40 lakh goods threshold does not apply to notified excluded categories (e.g. ice cream, pan masala, tobacco products) or where the business makes inter-state supplies — the ₹20 lakh limit applies instead.
For Services (Including Professionals, Consultants, Freelancers)
| State Category | Annual Aggregate Turnover Exceeds |
|---|---|
| Normal states | ₹20,00,000 |
| Special category states (Manipur, Mizoram, Nagaland, Tripura) | ₹10,00,000 |
Andhra Pradesh (where Srikakulam is located) is a normal state. Registration is mandatory at ₹40 lakh for goods and ₹20 lakh for services.
Who Must Register Regardless of Turnover?
Some businesses must register even if their annual turnover is below the threshold (Section 24 of the CGST Act):
| Category | Why Mandatory |
|---|---|
| Inter-state suppliers | Any business that supplies goods to another state must register, regardless of turnover (small inter-state service suppliers below the threshold are exempt) |
| E-commerce sellers | Anyone selling on Amazon, Flipkart, Meesho or any e-commerce platform must register |
| E-commerce operators | Platforms like Amazon, Flipkart themselves |
| Casual taxable persons | Someone who supplies goods/services occasionally in a state where they have no fixed business place |
| Non-resident taxable persons | Foreign businesses making taxable supplies in India |
| Persons required to pay tax under Reverse Charge Mechanism (RCM) | Even if turnover is nil |
| Input Service Distributors (ISD) | Offices that distribute ITC to branches |
| Persons making taxable supplies on behalf of others (agents) | Commission agents, brokers |
| TDS/TCS deductors under GST | Government departments, PSUs, e-commerce operators collecting TCS |
Who Is Exempt from GST Registration?
| Category | Exemption |
|---|---|
| Agriculturists — supplies from their own farm produce | Exempt |
| Businesses engaged exclusively in wholly exempt supplies | Exempt from registration |
| Persons making only intra-state supplies of goods below threshold | Exempt if below ₹40 lakh (subject to state opt-in and category) |
Composition Scheme — A Simplified Option for Small Businesses
The Composition Scheme is an optional scheme for small taxpayers with annual turnover up to ₹1.5 crore (₹75 lakh for certain special category states, and up to ₹50 lakh for independent service providers/mixed suppliers). Under this scheme:
| Aspect | Composition Scheme | Regular GST |
|---|---|---|
| Tax rate | 1% (traders), 1% (manufacturers), 5% (restaurants, non-alcohol), 6% (service providers) | As per GST rate applicable to the supply |
| Returns | CMP-08 (quarterly) and GSTR-4 (annual) | GSTR-1 and GSTR-3B (monthly/quarterly) |
| ITC | Cannot claim ITC | Can claim ITC |
| Interstate supply | Not permitted | Permitted |
| Collect GST from customers | Not permitted — pays from own pocket | Collects GST and deposits to government |
The Composition Scheme is suitable for small retailers, restaurants and manufacturers who deal primarily with end consumers (B2C) and do not need ITC.
Documents Required for GST Registration
| Document | Proprietorship | Partnership Firm | Private Limited Company / LLP |
|---|---|---|---|
| PAN Card | Proprietor’s PAN | All partners’ PANs + Firm PAN | Company/LLP PAN + Directors’ PANs |
| Aadhaar Card | Proprietor’s Aadhaar | All partners’ Aadhaar | Authorised signatory’s Aadhaar |
| Constitution Proof | — | Partnership Deed | Certificate of Incorporation |
| Proof of Business Place | Electricity bill, rent agreement or ownership document | Same | Same |
| Bank Account Proof | Cancelled cheque or passbook (first page) | Same | Same |
| Digital Signature (DSC) | Not mandatory | Not mandatory | Mandatory for companies and LLPs |
| Photograph | Proprietor’s photo | All partners’ photos | Authorised signatory’s photo |
Step-by-Step GST Registration Process
Step 1: Visit www.gst.gov.in → Services → Registration → New Registration.
Step 2: Fill Part A — Enter PAN, mobile number and email ID. An OTP is sent to verify them. Note the Temporary Reference Number (TRN) generated.
Step 3: Log in using the TRN → complete Part B with all business details — legal name, trade name, business type, principal place of business, bank details and upload documents.
Step 4: Submit the application with Digital Signature Certificate (DSC) (mandatory for companies and LLPs) or using EVC (OTP-based, for individuals and firms).
Step 5: The GST officer reviews the application. They may raise a Notice for Clarification (Form GST REG-03) asking for additional information or documents — respond via Form GST REG-04 within 7 working days.
Step 6: If satisfied, the officer approves the application and a GSTIN is allotted. The GST Registration Certificate (Form REG-06) is issued.
Typical timeline: 7 working days from the date of submission (3 working days if Aadhaar-authenticated with no risk flags); may extend to 30 days if physical verification is required, subject to officer workload.
Key Post-Registration Obligations
Once registered, you must:
- Display your GSTIN on your signboard at your business premises and on all invoices.
- Issue GST-compliant tax invoices for every supply of goods or services.
- File GST returns on time — GSTR-1 (sales) and GSTR-3B (summary and tax payment) monthly or quarterly, based on your turnover.
- Pay GST by the due date — 20th of the following month for monthly filers (22nd/24th for QRMP quarterly filers, depending on state group).
- Reconcile GSTR-2B (auto-generated static ITC statement) with your purchase records every month before claiming ITC.
- File GSTR-9 (Annual Return) by 31 December for the previous financial year. Following the September 2025 GST 2.0 reforms, businesses with aggregate turnover up to ₹2 crore are exempt from filing the annual return.
Penalty for Not Registering Under GST
If a business was required to register under GST but did not, the penalties are:
| Violation | Penalty |
|---|---|
| Failure to register | 10% of the tax due or ₹10,000 — whichever is higher |
| Deliberate evasion of GST | 100% of the tax due |
| Retrospective tax demand | From the date registration was mandatory, with interest at 18% per annum |
Voluntarily registering before detection significantly reduces penalty exposure and allows you to regularise past transactions.
The information provided herein is for general guidance and informational purposes only. For advice tailored to your specific situation, please consult a qualified Chartered Accountant.