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Who has to register for GST?

Who has to register for GST?

25-Oct-2025

Tax

Answer By law4u team

In India, GST (Goods and Services Tax) registration is mandatory for certain persons and optional/voluntary for others, depending on the nature of business, turnover, and type of supply. Here's a clear explanation in text format (no tables): Who Has to Register for GST (Mandatory Registration)? GST registration is compulsory for the following categories: 1. Businesses whose aggregate turnover exceeds the threshold limit: For businesses within the same state (intra-state supply): If you sell goods: Registration is required if turnover exceeds ₹40 lakhs (₹20 lakhs for special category states like the Northeast). If you provide services: Registration is required if turnover exceeds ₹20 lakhs (₹10 lakhs for special category states). 2. Inter-State Supply: If you supply goods or services to another state, you must register for GST regardless of turnover. 3. E-commerce Sellers and Aggregators: If you sell through platforms like Amazon, Flipkart, etc., you must register, even if turnover is below the threshold. 4. Casual Taxable Persons: Someone who occasionally supplies goods/services in a taxable territory where they have no fixed place of business (e.g., exhibition stalls, temporary shops) must register regardless of turnover. 5. Non-Resident Taxable Persons: Foreigners or non-residents supplying goods/services in India must obtain GST registration before starting operations. 6. Persons liable to pay tax under reverse charge mechanism (RCM): If you're required to pay GST on behalf of the supplier, you must register. 7. Input Service Distributors (ISD): Entities distributing input tax credit among branches must register. 8. Agents supplying on behalf of other taxable persons: Commission agents, brokers, or intermediaries also require registration. 9. Persons required to deduct TDS or collect TCS under GST: Government departments and e-commerce platforms that deduct tax must register. 10. Others notified by the government: The government may notify specific businesses or categories that must register. Who Can Register Voluntarily? Even if not required by law, you can opt for voluntary GST registration to: Claim input tax credit (ITC) Operate with larger businesses Improve business credibility Once registered voluntarily, you are treated as a regular taxpayer and must follow all GST compliance rules (like filing returns, paying tax, etc.). Penalties for Not Registering (When Required) If you are liable but fail to register, the tax authorities can impose a penalty of 100% of the tax due or ₹10,000, whichever is higher. You may also be liable to pay GST from the date you were supposed to be registered, along with interest. Conclusion You must register for GST in India if: Your turnover exceeds the threshold based on your business type and location You do inter-state supply, sell online, or are covered under special categories (like agents, non-residents, RCM, etc.) If you're unsure, it's safer to consult a GST practitioner or chartered accountant to avoid non-compliance.

Answer By Ayantika Mondal

Dear Client, As per the Goods and Services Tax (GST) Act, there are a number of cases in which registration is required: 1. Registered aggregators must register if their turnover exceeds ₹40 lakhs (or ₹20 lakhs for a few special category states). Service providers are permitted to register under GST at ₹20 lakhs. 2. E-commerce operators must register regardless of the total turnover. 3. Inter-state suppliers of goods or services must register. 4. Casual taxable persons and non-resident taxable persons conducting business in India must register to be able to pay tax. 5. Businesses required to deduct or collect tax at source (TDS/TCS) under GST must register. Voluntary registration is permitted for smaller businesses in order to obtain input tax credit and enhance their credibility. I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.

Answer By Anik

Dear client, The GST system has transformed and unified indirect taxes across India. To ensure seamless compliance with the GST regime, it is essential to understand who needs to register under GST. Who needs to register under GST 1. Businesses involved in the supply of goods with turnover in a financial year exceeding Rs.40 lakhs (Rs.20 lakh in some states such as those in the North East). 2. Businesses involved in the supply of services with turnover in a financial year exceeding Rs.20 lakhs (Rs.10 lakhs for Special Category states). 3. Every person who was registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) Non-resident persons making taxable supply also known as casual taxable person 4. Persons who make taxable supply on behalf of other taxable persons whether as an agent or otherwise 5. Input Service Distributor – ISD 5. Business required to deduct or collect tax at source that is TCS (Tax Collected at Source) and TDS Deductor (Tax Deducted at Source) 6. A Person selling goods or services through an e-commerce operator 7.Every e-Commerce operator who is required to collect tax at the source 8. A Person making interstate supply of goods It is important to note that the applicability of GST registration is dependent on the Aggregate Annual Turnover (AATO). This means that a person or a business needs to get registered for GST only if their AATO crosses Rs. 40 lakhs (Rs.20 lakh in some states such as those in the North East). Voluntary registration Voluntary registration is permitted for smaller businesses in order to obtain the input tax credit and enhance their credibility. It could be concluded that any business which is involved in the supply of goods or services with a specific turnover needs to register under GST and file GST returns as per the decided guidelines in order to avoid penalties. I hope this answer was helpful. For any further queries please do not hesitate to contact us.