“Do I need GST?” is the first question most new business owners ask us, and the honest answer is: it depends on what you sell, how much, and to whom. Here is how to work it out, and what the registration process looks like once you know.
The turnover limits
Registration becomes compulsory once your aggregate turnover in a financial year crosses:
- ₹40 lakh if you supply only goods, in most states including Uttar Pradesh;
- ₹20 lakh if you supply services, or both goods and services.
Lower limits apply in some north-eastern and hill states. “Aggregate turnover” means the total of all your supplies across India under the same PAN — taxable, exempt and export sales included — so a business with two shops counts both.
When GST is compulsory from the first sale
Some businesses must register whatever their turnover. The most common cases are:
- selling goods to buyers in another state;
- selling goods through e-commerce platforms such as Amazon or Flipkart (some small sellers supplying only within their own state are exempt, subject to conditions);
- running an e-commerce platform yourself;
- paying tax under reverse charge on what you buy;
- trading occasionally in a state where you have no fixed place of business (a casual taxable person), or acting as an agent for a registered supplier.
Why many small businesses register anyway
Voluntary registration is common, and often sensible. Business buyers prefer GST-registered suppliers because they can claim credit on your invoices. You can claim credit on your own purchases too, list your products on online marketplaces, and look more established to banks and customers. The trade-off is that you must file returns every period — even nil returns — from the day you register.
If your turnover is up to ₹1.5 crore, the composition scheme is worth a look: you pay a small flat rate on turnover and file far fewer returns, but you can’t charge GST on your invoices, claim input tax credit or sell goods to other states.
Documents you need
| Business type | Documents |
|---|---|
| Proprietor | PAN and Aadhaar of the owner, photograph, bank statement or cancelled cheque, proof of the business address |
| Partnership firm / LLP | Partnership deed or LLP certificate, PAN of the firm, PAN, Aadhaar and photos of the partners, authorisation letter, address proof |
| Company | Certificate of incorporation, MoA and AoA, PAN of the company, details of the directors, board resolution, address proof |
For the business address, an electricity bill with a rent agreement or a no-objection letter from the owner is usually enough. Keep a mobile number and email address linked to the applicant’s Aadhaar handy for the OTPs.
How the application works
- Part A — enter PAN, mobile number and email on the GST portal and verify the OTPs to get a Temporary Reference Number (TRN).
- Part B — fill in business details, places of business, bank account and goods or services supplied, and upload the documents.
- Aadhaar authentication — complete it through the OTP link, or through biometric verification at a GST Suvidha Kendra if asked.
- Officer review — you receive an Application Reference Number (ARN). If the officer raises a query, reply within seven working days.
- GSTIN issued — once approved, the registration certificate can be downloaded from the portal.
With Aadhaar authentication and clean documents, registration usually comes through within about a week. It takes longer if the officer asks for clarification or orders a physical verification of your premises.
After you get your GSTIN
Display your GSTIN and registration certificate at your place of business, start issuing proper tax invoices, and file returns from the effective date of registration. Our guide to GST return filing explains that monthly cycle, and our GST registration service takes care of the application from start to finish.
This article is general guidance based on the rules in force on its publish date, not professional advice for your specific case. Tax and company rules change often — check your situation with us before you act.
