GST Registration in India: Threshold, Documents & Process

The basic rule is turnover-based, and it differs for goods and services. 'Aggregate turnover' is computed on an all-India PAN basis and includes taxable, exempt, export, and inter-state supplies.

• Suppliers of goods: registration is mandatory once aggregate turnover exceeds ₹40 lakh in a financial year (₹20 lakh for special-category/north-eastern states).
• Suppliers of services: the threshold is ₹20 lakh (₹10 lakh for special-category states).
• You may also register voluntarily below the threshold — useful where customers want to claim input tax credit on your invoices.

Section 24 of the CGST Act lists categories that must register even if turnover is below the threshold. If you fall in any of these, the turnover limits do not help you.

• Persons making any inter-state taxable supply of goods.
• E-commerce operators, and (in many cases) persons supplying through an e-commerce operator.
• Casual taxable persons and non-resident taxable persons.
• Persons required to pay tax under reverse charge.
• Input service distributors and agents supplying on behalf of others.

The exact set depends on the constitution of the business (proprietorship, partnership, LLP, company), but the core documents are consistent.

• PAN of the business and of the proprietor/partners/directors, and Aadhaar of the authorised signatory.
• Photographs of the proprietor/partners/directors and the authorised signatory.
• Proof of constitution: partnership deed, certificate of incorporation, or LLP agreement as applicable.
• Proof of principal place of business: latest electricity bill, municipal/property-tax receipt, rent agreement, and an NOC from the owner where premises are rented.
• Bank account proof: a cancelled cheque, bank statement, or the first page of the passbook.
• Digital Signature Certificate (DSC) for companies and LLPs (others can verify via Aadhaar-based EVC).

Registration is fully online on the GST portal (gst.gov.in). The application is Form GST REG-01, filed in two parts.

• Part A: enter PAN, mobile number, and email; verify via OTP to receive a Temporary Reference Number (TRN).
• Part B: using the TRN, fill business details, promoter/partner details, the authorised signatory, the principal (and any additional) place of business, the goods/services, and bank details; upload the documents.
• Complete Aadhaar authentication for the authorised signatory (this speeds up approval and reduces the chance of physical verification).
• Submit with DSC or EVC. The portal generates an Application Reference Number (ARN) to track status.
• On approval, the GSTIN and the registration certificate (Form GST REG-06) are issued and downloadable from the portal.

Where Aadhaar authentication is completed and no red flags arise, approval typically comes within about three to seven working days. If the department opts for physical verification of premises or raises queries (Form GST REG-03), the timeline extends while you respond (Form GST REG-04).

Small taxpayers may opt for the composition scheme (broadly, aggregate turnover up to ₹1.5 crore for goods), which allows a lower flat rate of tax with simpler quarterly compliance — but a composition dealer cannot claim input tax credit, cannot make inter-state outward supplies, and cannot collect tax from customers in the normal way.

Operating above the threshold without registering, or failing to register when compulsorily required, attracts a penalty — broadly 10% of the tax due (subject to a minimum), rising to 100% of the tax due where there is deliberate evasion. Beyond the penalty, you also lose the ability to pass on input tax credit, which damages B2B relationships.