The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. If you’re running a business, it’s important to know whether GST registration is mandatory for you. Here’s a breakdown of who must register:
1. Turnover Threshold
For Goods:
Rs. 40 lakhs and above (Rs. 20 lakhs for special category states*)
For Services:
Rs. 20 lakhs and above (Rs. 10 lakhs for special category states*)
*Special category states include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, etc.
2. Inter-State Supply
Any business making inter-state supply of goods must register under GST, regardless of turnover. For services, the threshold applies.
3. E-commerce Sellers
If you sell through platforms like Amazon, Flipkart, or your own e-commerce website, GST registration is mandatory—no matter your turnover.
4. Casual Taxable Persons
Businesses that occasionally supply goods/services in different states (like exhibition stalls) must register regardless of turnover.
5. Non-Resident Taxable Persons
Foreign entities providing goods or services in India must obtain GST registration.
6. Input Service Distributors (ISD)
Entities that distribute the credit of GST paid on services to other branches must register as ISDs.
7. Reverse Charge Mechanism (RCM)
If you’re liable to pay GST under the RCM, you’re required to register—even if your turnover is below the threshold.
8. Others Who Must Register
Agents of suppliers
Persons liable to deduct TDS/TCS under GST
Online database and service providers from abroad
Still Unsure?
At Radgiver Business Advisors, we help you determine if GST applies to your business and handle the registration, compliance, and filing process from start to finish.
