GST registration is generally driven by aggregate turnover, but section 24 and later exemptions make the answer fact-specific. Check the nature of supply, state, e-commerce model, interstate activity and notifications before relying on a threshold.
Current law before inherited content
The supplied draft was used as a topic brief, not as legal authority. Competitor promotions, duplicated wording, obsolete examples and unsupported claims have been removed. Always verify the effective notification and the facts of the transaction before acting.
Review status: Professional review pending. This general guide is not a legal opinion, tax computation, audit conclusion or filing instruction for a specific person.
Who must register
Section 22 applies turnover-based registration, while section 24 lists compulsory categories. The ₹40 lakh goods threshold is available only where the relevant notification and state conditions are satisfied; the general services threshold is ₹20 lakh, with lower limits in specified states. Do not treat every interstate or e-commerce transaction as automatically identical—notifications provide important exceptions.
How aggregate turnover works
Aggregate turnover is PAN-based and calculated across India. It includes taxable supplies, exempt supplies, exports and interstate supplies of persons having the same PAN, but excludes GST and inward supplies taxed under reverse charge. A branch-wise calculation can therefore understate liability.
Documents and REG-01 process
Prepare PAN, constitution documents, photographs, proof of principal place, authorisation and bank details where requested. Submit REG-01, complete Aadhaar authentication or verification as applicable, answer REG-03 queries through REG-04, and download REG-06 after approval.
Voluntary registration
A below-threshold business may register voluntarily to support B2B invoicing and eligible input tax credit. The trade-off is continuing return, invoice, payment and record obligations; registration is not a one-time credibility badge.
Post-registration controls
Display the registration certificate at the principal and additional places of business and show the GSTIN on the name board. Configure tax invoices, place-of-supply logic, e-invoicing if applicable, reconciliations, return calendars and change-management for core fields.
Errors and penalties
Common failures include excluding exempt turnover, using the wrong state threshold, delaying the application after liability arises, claiming ITC without conditions, and assuming marketplace selling always has the same rule. Non-registration can trigger tax, interest and penalty; quantify exposure under the current Act before stating a fixed penalty.
Need a fact-specific compliance review?
Map the applicable law, effective date, documents, filing route and ongoing obligations before relying on a general article.
Request a TargoLegal reviewFrequently asked questions
Is GST registration free?
Yes, the government portal does not levy an application fee; professional assistance is optional.
Are all e-commerce sellers compulsorily registered?
Not in every modern scenario. Section 24 must be read with current notifications and the platform’s TCS status.
Is exempt turnover ignored?
No. Exempt supplies are generally included in aggregate turnover.
Can I register voluntarily?
Yes, but the normal obligations of a registered person then apply.
When should I apply?
A liable person ordinarily applies within the statutory period from becoming liable; check special categories separately.
