GST (Goods and Services Tax) is a common tax that most businesses in India must follow. But the big question is — who is required to register under GST? Do all businesses need it? Or only those above a certain income?
In this guide, we will explain who must register, who should register optionally, and who is exempt — all in simple language.
🔹 What is GST Registration?
GST registration is the process of getting a unique 15-digit GSTIN (GST Identification Number) from the government. This number allows you to:
- Legally collect GST from customers
- Claim Input Tax Credit (ITC)
- File GST returns
- Do business across states
📌 Mandatory GST Registration – Who Must Register?
You must register for GST if any of the following applies to you:
1. Turnover Above the Threshold Limit
- For goods:
- ₹40 lakh for most states
- ₹20 lakh for special category states (like those in the Northeast)
- For services:
- ₹20 lakh for most states
- ₹10 lakh for special category states
⚠️ Turnover includes all taxable + exempt supplies + exports + inter-state supplies.
2. Inter-State Supply of Goods
- If you sell goods from one state to another, GST registration is mandatory, even if your turnover is below ₹40 lakh.
3. E-commerce Sellers
- If you sell goods or services through platforms like Amazon, Flipkart, Zomato, etc., you must register under GST.
4. Casual Taxable Persons
- If you occasionally supply goods or services in a state where you don’t have a permanent business (e.g., exhibition stall), you need temporary GST registration.
5. Non-Resident Taxable Persons
- Foreign individuals or companies supplying in India also need GST registration.
6. Reverse Charge Mechanism (RCM)
- If you are liable to pay tax under RCM, you must register.
7. Input Service Distributors (ISD)
- Companies that distribute ITC among branches must register.
8. Agents of Suppliers
- People who sell on behalf of someone else (commission agents, brokers, etc.) must register.
🤝 Voluntary GST Registration – You Can Also Choose to Register
Even if you’re not required to register, you can voluntarily register to enjoy benefits like:
- Claiming Input Tax Credit
- Better business credibility
- Selling on e-commerce platforms
- Expanding to other states
🚫 Who is Exempt from GST Registration?
Some businesses do not need to register under GST, such as:
- Farmers supplying unprocessed produce
- Businesses dealing only in exempted goods/services
- Small businesses below the threshold and not doing interstate trade
- Certain government departments and non-profit organizations
📄 Documents Required for GST Registration
To register for GST, you typically need:
- PAN card of the business
- Aadhaar card of the proprietor/partner
- Business address proof
- Bank account details
- Photograph and identity proof
- Certificate of incorporation (for companies)
📅 When to Register?
You should register:
- Within 30 days of becoming liable for GST
- Or before starting inter-state or e-commerce supplies
Late registration can lead to penalties and fines.
✅ Final Words
Whether you’re running a shop, offering freelance services, selling online, or starting a new business — GST registration may be mandatory or beneficial depending on your business type and location.
Getting registered on time can help you:
- Stay compliant with the law
- Claim ITC and reduce tax burden
- Grow your business smoothly across states
📞 Need Help with GST Registration or Filing?
If you are facing any difficulties related to GST registration, return filing, input credit, business planning, or other tax services,
please contact us:
🧾 Taxeasy Solution
📍 Supaul Bazar, Biraul,
Darbhanga, Bihar – 847203
📞 Mob: 6289187606
📧 Email: jhajp96@gmail.com
