In India, a small business generally must register for GST when its PAN-based aggregate turnover crosses the threshold that applies to its supplies and State or Union territory. Registration may also be compulsory below that threshold for some business categories, while specified exempt cases are excluded. Most applicants use Form GST REG-01 on the GST Portal. Before applying, check the current rule for your business model and location: no single turnover figure answers every case.
First, check whether this guide applies to your business
This guide covers India’s Goods and Services Tax under the Central Goods and Services Tax (CGST) Act. The threshold and registration rules described here do not apply to businesses in other countries. Within India, the answer can depend on the kind of supplies you make, where you operate, whether a compulsory-registration category applies, and current State or Union territory notifications.
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Use the decision sequence below as a starting point, not as a substitute for checking the provision and notification that apply to your specific facts:
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- Identify whether your supplies are taxable, exempt or non-taxable, or a mixture.
- Work out aggregate turnover on a PAN basis across India, rather than looking only at one shop, branch, or State.
- Check the applicable threshold for your supply type and State or Union territory, including any current notification for suppliers engaged exclusively in goods.
- Check whether a compulsory-registration provision or an exclusion changes the result.
- If you are liable, identify the deadline and apply through the GST Portal using the appropriate applicant category.
For a business whose circumstances cross States, involve mixed supplies, or fit a special category, the statutory provisions and applicable notifications matter more than a simplified threshold summary.
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These checks are related but not interchangeable. For example, a business can be below the ordinary turnover threshold and still need to examine whether section 24 applies. Conversely, a person within a stated exclusion should not assume that a turnover figure by itself settles the question. Work through the supply, turnover, location, and category tests together.
Which turnover threshold applies?
Section 22 of the CGST Act sets the general threshold at ₹20 lakh in aggregate turnover in a financial year, and a ₹10 lakh threshold in the special-category case specified by that section. These are statutory figures in the Act as displayed by the Central Board of Indirect Taxes and Customs (CBIC); they should not be treated as a universal answer for every business or location.
The Act also allows the Government, on the GST Council’s recommendation, to raise the threshold for a supplier engaged exclusively in goods to an amount of up to ₹40 lakh, subject to notification and limitations. “Up to” is important: it does not mean every business selling goods automatically receives a ₹40 lakh threshold. Whether the higher threshold applies depends on the relevant current notification and its conditions, including the supplier’s activities and location.
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Because State and Union territory notifications and statutory amendments can affect the applicable figure, check the current official rules before relying on a threshold for a particular business. In particular, do not assume that a goods business qualifies for the higher threshold merely because it sells goods, or that the same threshold applies in every State or Union territory.
Use aggregate turnover, not one outlet’s sales
CBIC describes aggregate turnover as calculated on a PAN basis across India. A business should therefore not test the threshold by counting only the sales of one shop, branch, or State. The turnover test is connected to the person’s aggregate turnover, rather than a separate threshold for each storefront.
CBIC’s FAQ is useful explanatory material, but it may not reflect every later change. If an FAQ and a current statutory provision or notification differ, use the current law applicable to your facts.
In practical terms, first identify the PAN against which the business operates, then consider its activity across India rather than doing a separate threshold calculation for each outlet. A business with locations in more than one State should not treat those locations as independent businesses for this particular aggregate-turnover test. This does not mean that one registration automatically settles every State-specific registration question: section 25 requires an application in every State or Union territory in which the person is liable.
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| Pathway | Figure in the CGST Act | What to verify |
|---|---|---|
| General section 22 threshold | ₹20 lakh | Whether this is the applicable category for the supplier and location, and whether another provision changes the result. |
| Special-category case stated in section 22 | ₹10 lakh | Whether the supplier falls within the special-category case described by the current Act. |
| Supplier engaged exclusively in goods | Government may raise the threshold to an amount up to ₹40 lakh | Whether a current government notification grants the higher threshold for the supplier’s circumstances and what limitations apply. |
The figures above are legal thresholds, not estimates or study findings. The Act and applicable notifications determine how they apply.
Compare the legal pathways before deciding
The useful comparison is not simply ₹20 lakh versus ₹40 lakh. It is whether the business falls under the ordinary section 22 route, a special-category threshold, a notified exclusive-goods route, a compulsory-registration category, or an exclusion. Each pathway asks a different question:
- Type of supply: Are supplies taxable, wholly exempt or non-taxable, or mixed? Section 23’s stated exclusion concerns people exclusively making specified exempt or non-taxable supplies.
- Turnover basis: Is the aggregate turnover calculated across India on the relevant PAN, rather than by individual location?
- Location and notification: Which State or Union territory is involved, and does a current notification affect the threshold or an exception?
- Business model: Does the business actually meet a section 24 category or a notified category, including its qualifications and exceptions?
- Applicant type and timing: Is the application for a normal taxpayer, a casual taxable person, or a non-resident taxable person? The deadline differs.
This comparison helps identify what must be checked; it is not a substitute for the current statutory text. If more than one route seems relevant, do not select the most favorable threshold without resolving the category question first.
When registration can be required below the threshold
Section 24 lists categories in which registration can be compulsory notwithstanding the section 22 threshold. The listed categories include certain suppliers making inter-State taxable supplies, casual taxable persons making taxable supplies, persons liable to pay tax under reverse charge, agents supplying on behalf of taxable persons, input service distributors, certain e-commerce suppliers or operators, and other notified categories.
Those descriptions are not a safe basis for assuming that every person who sells across a State boundary or through an online marketplace must register. Statutory qualifications, exceptions, amendments, and notifications can affect a particular category. Check the current wording of section 24 and any relevant rules for your business model. In particular, distinguish an activity that appears to fit a category in general terms from one that actually meets the legal conditions for compulsory registration.
For a business that may fit one of these categories, establish the answer before relying on a turnover threshold. If the facts are difficult to classify—for example, because the business has agents, uses an e-commerce arrangement, or has supplies with different tax treatment—professional advice may help, but the application itself is not shown to require a paid consultant.
Do not treat “inter-State” or “online” as a complete legal analysis. Ask what is being supplied, who is making or facilitating the supply, and whether the exact statutory category and any exception apply. The relevant provision may distinguish between types of supplier or arrangement, so a broad label alone cannot determine liability.
When a person may be excluded
Section 23 excludes specified people from registration. The stated exclusions include a person exclusively making supplies of goods or services that are non-taxable or wholly exempt, and an agriculturist to the extent of produce from cultivation of land. The Government may also notify categories of people to be exempt.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe word exclusively matters. A business with both exempt and taxable supplies should not assume that an exclusion for exclusively exempt or non-taxable supplies covers it. Review the actual mix of supplies and the current statutory provision before concluding that registration is unnecessary.
An exclusion is a distinct route from being below a threshold. A business should first confirm that its facts fit the stated exclusion, including the “exclusively” condition where relevant, rather than assuming that every person with little taxable activity is outside the registration rules. Government-notified exclusions should likewise be checked against the current notification and the person’s actual circumstances.
Voluntary registration: an option with obligations
A person who is not otherwise liable may apply to register voluntarily. Registration is not just a certificate with no continuing effect: after registering, the person becomes subject to the provisions applicable to registered persons. CBIC’s FAQ also warns that voluntary registration affects tax treatment after registration.
Consider the practical consequences before choosing this route. The decision should account for the obligations that come with registered status and the way registration affects the business’s tax treatment. The official materials summarized here establish that those consequences exist, but do not provide a complete, business-specific list of ongoing filing or payment obligations; consult the current rules for the obligations that would apply to your case.
Voluntary registration is therefore different from simply preparing an application in advance. It changes the person’s status under GST, and the consequences continue to matter after the certificate is issued. Compare the reason for seeking registration with the responsibilities of being registered, and verify those responsibilities for the business before choosing this route.
When to apply and how the effective date works
Under section 25 of the CGST Act, a person liable under section 22 or section 24 generally must apply in every State or Union territory where the person is liable within 30 days after becoming liable. A casual taxable person or non-resident taxable person must apply at least five days before starting business.
For a normal taxpayer, the GST Portal tutorial explains a difference tied to when the application is filed: an application filed within 30 days can have an effective date from the date liability arose; if the application is delayed, the effective date is the date registration is granted. A late application does not move the date on which the underlying liability arose.
These timing rules are not interchangeable. First identify whether you are a normal taxpayer, casual taxable person, or non-resident taxable person; then calculate the deadline from the relevant event. If your category or start date is uncertain, confirm the applicable rule rather than assuming the ordinary 30-day period covers every applicant.
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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesFor a person with liability in more than one State or Union territory, the statutory wording matters: the application is required in every such State or Union territory. Do not assume that filing for one location automatically completes the application requirement for all locations where the person is liable. For a casual taxable person or non-resident taxable person, plan around the pre-commencement deadline instead of treating it as an extension of the usual post-liability period.
How to apply online using Form GST REG-01
Most regular applicants use the GST Portal. The Portal’s registration process has two parts: Part A collects basic applicant and contact information, and Part B collects business, place-of-business, goods or services, and authentication details. The exact screens and instructions can vary with the applicant’s circumstances, so follow the prompts shown for your application.
- Open the new-registration route. On the GST Portal, choose Services > Registration > New Registration. Select the taxpayer type and the relevant State or Union territory and district.
- Complete Part A. Enter the legal name as recorded against the applicant’s PAN, PAN, email address, and the mobile or contact details requested by the Portal. The rules identify PAN, mobile, email, and State or Union territory among the Part A declarations for ordinary applicants.
- Continue using the Temporary Reference Number. After the Part A step, use the Temporary Reference Number to return to the application and proceed to Part B as directed by the Portal.
- Fill in the business details in Part B. Provide the relevant information about the business, its constitution, promoters or partners, and authorized signatory. Enter the principal and any additional places of business, and the goods or services details requested. The Portal requires a primary authorized signatory and includes authentication and verification stages.
- Submit REG-01 and complete the requested authentication. The Portal describes PAN validation and OTP-based or biometric Aadhaar verification, depending on the process. Follow the instructions displayed for the individual application.
- Track the application and respond to requests. Use the Portal’s application-status tools to follow progress. If the Portal requests clarification, respond through the Portal. Approval timing is not guaranteed by a universal time period: the process and review can vary with authentication and the application.
Use the applicant category and State or Union territory information that match the case rather than selecting options simply because they seem easiest. Part A is not the entire registration: after obtaining the Temporary Reference Number, return to complete Part B and its business, location, activity, and authentication fields. Keep the contact channel used in the application available so you can follow Portal instructions and address a request for clarification.
Prepare the information the application asks for
Gather the information needed to complete the Portal form before starting, especially where other people must provide details or confirm a role. The registration application asks for PAN and contact information, business and constitution details, information about an authorized signatory, place-of-business information, and goods or services details.
- Applicant and contact: the legal name recorded against PAN, PAN, and the requested email and mobile or contact details.
- Business identity: the relevant business and constitution information requested for the applicant.
- People responsible for the application: promoter or partner details, where relevant, and the primary authorized signatory.
- Business locations: the principal place of business and any additional places that apply.
- Business activity: the goods and services details requested in the application.
- Authentication: access to the contact details and any identity-verification method the Portal requires.
Supporting documents depend on the business constitution and premises. The official material summarized here does not establish one universal document checklist for every entity type. Use the current checklist and document prompts displayed in the GST Portal application for your circumstances rather than relying on a generic list that may omit a requirement or ask for irrelevant paperwork.
Before you begin, check that the PAN-linked legal name and contact information are available and that the people who will act as promoter, partner, or authorized signatory can provide the information needed. This preparation can help you complete the form in sequence, but it does not replace the portal’s document-specific instructions. Requirements can differ based on both the applicant’s constitution and the premises being listed.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Aadhaar authentication and application follow-up
The Portal describes PAN validation and Aadhaar-based authentication or other verification steps. Which method applies can depend on the application process. If Aadhaar verification is required, the GST Portal’s Aadhaar Authentication FAQ says the applicant has 15 days from submission of Part B to complete it before the link expires.
Watch for the Portal’s instructions and complete the step within the stated window if it applies to you. The 15-day period is specifically tied to required Aadhaar verification after Part B submission; it is not a general promise that the full registration will be approved within 15 days.
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If the Portal directs you to OTP-based or biometric verification, follow the applicable route rather than assuming that every applicant will see the same sequence. Keep the application status under review and respond through the Portal to any clarification request. A requested verification step and the final review are separate parts of the process.
Costs, products, and professional help
The registration process described by CBIC and the GST Portal is an online application through the GST Portal; the official steps do not establish that an applicant needs to buy a manual, forms or stationery, bookkeeping supplies, computer hardware, or paid registration software. No such purchase should be treated as a requirement for submitting REG-01.
Professional assistance may be useful where the business has a difficult classification question, mixed supplies, multiple locations, or a potentially applicable compulsory-registration category. But the official process does not show that every small business needs a consultant or chartered accountant to apply. No universal professional fee or approval-time cost can be stated here; if you choose to hire help, confirm the provider’s scope and charges directly.
Common mistakes that can lead to the wrong decision
- Using sales from only one location. Aggregate turnover is PAN-based across India, according to CBIC’s explanation; checking only one outlet or State can give an incomplete result.
- Treating ₹40 lakh as an automatic goods threshold. The Act permits a notified increase up to that amount for suppliers engaged exclusively in goods, subject to conditions and limitations. Verify the current notification that applies.
- Assuming the threshold is the only test. Section 24 can require registration below the ordinary threshold, while section 23 and government notifications provide exclusions or exemptions for specified cases.
- Applying a category label too broadly. Terms such as inter-State supplier or e-commerce seller do not, by themselves, establish the answer for every business. Check the current statutory category, qualifications, and exceptions.
- Waiting past the applicable deadline. The general 30-day period and the five-days-before-commencement rule apply to different applicant categories. Determine which one governs your facts.
- Assuming a delayed application resets liability. For a normal taxpayer, the effective date may be the grant date if the application is late, but that does not change the date liability arose.
- Relying on an assumed document list or approval time. The required supporting documents depend on constitution and premises, and there is no reliable universal approval-time guarantee in the official material summarized here. Follow the Portal’s current prompts and status updates.
- Confusing an exclusion with a low turnover. An exclusion such as the one for exclusively exempt or non-taxable supplies has its own conditions; being below a threshold is a separate test.
- Missing the verification window. Where Aadhaar verification is required, the GST Portal FAQ gives 15 days from Part B submission to complete it before the link expires.
- Assuming one State application covers all liable locations. Section 25 says to apply in every State or Union territory in which the person is liable.
Frequently Asked Questions
What is the threshold for registration in GST?
Section 22 of India’s CGST Act gives a general threshold of ₹20 lakh and a ₹10 lakh threshold in the special-category case specified there. For suppliers engaged exclusively in goods, the Government may raise the threshold to as much as ₹40 lakh through notification, subject to conditions and limitations. Check the current State or Union territory rules and your business facts before using one figure.
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Possibly. Section 24 lists categories that can require registration notwithstanding the section 22 threshold, with qualifications and exceptions. Section 23 also excludes specified cases, including people exclusively making non-taxable or wholly exempt supplies and an agriculturist for produce from cultivation. Check the exact current provision for your supplies and business model.
Is GST turnover calculated separately for each shop or State?
CBIC describes aggregate turnover as PAN-based across India, so do not test the threshold using only one shop, branch, or State. Separately, section 25 requires an application in every State or Union territory where the person is liable.
How long can I wait to register in GST?
A person liable under section 22 or section 24 generally must apply within 30 days after liability arises. A casual taxable person or non-resident taxable person must apply at least five days before starting business. Identify your applicant category before calculating the deadline.
What happens if a normal taxpayer applies after the 30-day period?
The GST Portal tutorial explains that a normal taxpayer who files within 30 days can have an effective date from when liability arose; after a delay, the effective date is the grant date. A late application does not change the date on which liability arose.
How much time do I have to complete Aadhaar authentication?
If Aadhaar verification is required, the GST Portal’s Aadhaar Authentication FAQ says to complete it within 15 days from submission of Part B, before the link expires. This is not a general guarantee that the full application will be approved within 15 days.
Do I need to buy software or hire a consultant to apply?
The standard application is made through Form GST REG-01 on the GST Portal, and the official process does not identify paid software or a consultant as a requirement. Professional advice may help with a complex category, supply, or location question, but not every applicant needs it.
The Bottom Line
For a small business in India, do not decide GST registration from one turnover number alone. Check PAN-based aggregate turnover, supply type, State or Union territory notifications, compulsory-registration categories, and exclusions. If liable, apply through GST REG-01 by the deadline that matches your applicant category, complete any required authentication promptly, and follow the GST Portal’s current instructions.
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