The turnover thresholds
You must register for GST when your aggregate turnover in a financial year crosses:
- ₹40 lakh for suppliers of goods in most states (₹20 lakh in some states), and
- ₹20 lakh for service providers (₹10 lakh in certain special category states).
Aggregate turnover is calculated on an all-India PAN basis and includes exempt supplies and exports.
Compulsory registration regardless of turnover
- Inter-state supply of goods
- Casual taxable persons and non-resident taxable persons
- Persons liable to pay tax under reverse charge
- E-commerce operators, and in many cases sellers who supply through them
- Input service distributors, and persons required to deduct or collect tax at source
Voluntary registration
Businesses below the threshold may register voluntarily, mainly to claim input tax credit and to sell to GST-registered buyers who prefer registered suppliers.
Composition scheme
Small taxpayers can opt for the composition scheme and pay tax at a lower fixed rate, with simpler returns, but they cannot collect tax from customers or claim input tax credit.
Consequences of not registering
Tax, interest and penalty become payable on supplies made without registration. Register within 30 days of becoming liable.
This guide explains the general position in India. Fees and rules change; your facts may change the answer. Speak to us before acting on it.