GST Registration: Who Needs It, and What the Process Actually Involves

GST registration is one of those things businesses either do too late or worry about too early. The rules are clearer than they look once you separate the turnover test from the mandatory categories.

The turnover test

In most states, a business supplying goods must register once aggregate turnover crosses ₹40 lakh in a financial year. For service providers the threshold is ₹20 lakh. Special category states apply lower limits. Aggregate turnover is computed across all your business verticals on the same PAN, all-India — not per branch, and not per state.

Categories that must register regardless of turnover

• Anyone making inter-state taxable supplies of goods
• E-commerce sellers supplying through a marketplace platform
• Businesses liable to pay tax under reverse charge
• Casual taxable persons and non-residents making taxable supplies
• Agents supplying on behalf of another registered person
• Businesses required to deduct TDS or collect TCS under GST

The e-commerce rule catches a lot of small sellers by surprise. If you list on a marketplace, you generally need a GSTIN from day one, no matter how small your sales are.

Should you register voluntarily?

If your customers are businesses, registration is usually worth it below the threshold too. Registered buyers want an invoice they can claim credit on, and being unregistered quietly costs you B2B work. If you sell mainly to consumers, voluntary registration adds compliance without adding much benefit.

Documents you will need

• PAN of the business and of the proprietor, partners, or directors
• Aadhaar of the authorised signatory, linked to an active mobile number
• Proof of the business premises — electricity bill, rent agreement, or owner NOC
• Bank account proof: a cancelled cheque or account statement
• Passport-size photographs
• Incorporation certificate or partnership deed, where applicable

How the process runs

You file the application on the GST portal, complete Aadhaar authentication, and wait for the officer to review it. If everything is in order the GSTIN is typically issued within about a week. If the officer raises a clarification, the clock resets — and a poorly answered query is the most common reason applications get rejected.

What comes next

Registration is the beginning, not the end. Once you hold a GSTIN you must file returns — usually GSTR-1 and GSTR-3B monthly, or quarterly under the QRMP scheme — even for months with no sales. A nil return still has to be filed, and late fees accrue daily on the ones that are not.

If you would like registration handled end to end, including any officer query, get in touch and we will tell you exactly which documents apply to your case.