GST Registration Under the CGST Act, 2017 – Complete Guide to GST Registration in India
A complete guide to GST registration in India covering ₹40 lakh, ₹20 lakh and ₹10 lakh turnover thresholds, Sections 22, 23 and 24 of the CGST Act, compulsory and voluntary registration, required documents, registration process, GSTIN, amendments, cancellation and compliance requirements.
TAXATION & COMPLIANCE
Registration Under the CGST Act, 2017 – Complete Guide to GST Registration in India
GST registration is one of the fundamental compliance requirements for businesses and professionals carrying on taxable activities in India. The registration framework is primarily governed by Sections 22 to 30 of the Central Goods and Services Tax Act, 2017 (CGST Act), read with the applicable rules, notifications and amendments.
GST registration provides a taxpayer with a unique GST Identification Number (GSTIN) and brings the person within the GST compliance framework.
However, not every person carrying on business is automatically required to obtain GST registration. The requirement depends upon factors such as aggregate turnover, nature of supply, location of the business and whether any compulsory-registration provision applies.
This comprehensive guide explains the important provisions relating to GST registration in simple terms.
1. What is GST Registration?
GST registration is the process through which a person becomes a registered taxpayer under the Goods and Services Tax law.
After registration, the taxpayer is allotted a 15-digit GSTIN.
A registered person may be required to:
Issue GST-compliant tax invoices
Collect GST from customers
Pay GST to the Government
File applicable GST returns
Maintain prescribed records
Claim eligible Input Tax Credit
Generate e-way bills wherever applicable
Comply with e-invoicing provisions wherever applicable
Display GST registration details as prescribed
GST registration therefore creates both rights and compliance responsibilities.
2. Who is Liable for GST Registration?
The primary provision is Section 22 of the CGST Act, 2017.
Generally, a person becomes liable to GST registration when his or her aggregate turnover exceeds the prescribed threshold limit during a financial year.
However, the threshold is not the same for every taxpayer.
The applicable threshold depends primarily upon:
Whether the taxpayer supplies goods or services
The State/UT from which the supply is made
Whether the person is exclusively engaged in supplying goods
Whether any compulsory-registration provision applies
3. GST Registration Threshold Limit
One of the most important questions for every business is:
At what turnover is GST registration mandatory?
For taxpayers covered by the applicable threshold exemption, the limits are broadly as follows:
The ₹40 lakh threshold for exclusive suppliers of goods and the corresponding ₹20 lakh threshold in specified States were introduced through the relevant notifications and conditions. CBIC's published GST update records these thresholds. ([CBIC GST][1])
Important
The ₹40 lakh limit is not a universal GST threshold for every business.
For example:
A goods trader in Uttar Pradesh may generally have a threshold of ₹40 lakh, subject to applicable conditions.
A service provider in Uttar Pradesh generally has a threshold of ₹20 lakh.
Certain specified States have lower thresholds.
Therefore, the nature of the business must be examined before determining whether GST registration is required.
4. Example of GST Registration Threshold
Example 1 – Goods Trader
Mr. A operates a hardware business in Uttar Pradesh.
His annual aggregate turnover is: ₹35 lakh
If he is exclusively engaged in eligible supplies of goods and no compulsory-registration provision applies, he may generally remain below the ₹40 lakh registration threshold.
If his aggregate turnover becomes: ₹42 lakh
he would generally become liable for GST registration.
Example 2 – Service Provider
Ms. B provides professional consultancy services in Delhi.
Her aggregate turnover is: ₹18 lakh
Since the general threshold for services is ₹20 lakh, she may generally remain below the threshold, subject to the nature of her activities and absence of compulsory-registration provisions.
If her turnover increases to: ₹22 lakh
she would generally become liable for registration.
5. What is Aggregate Turnover?
The threshold is based on aggregate turnover, not merely the taxable sales shown in one particular invoice or one GST registration.
Under the GST law, aggregate turnover is generally calculated on an all-India PAN basis.
It includes:
· Taxable supplies
· Exempt supplies
· Exports
· Inter-State supplies
It generally excludes:
Central GST
State GST
Union Territory GST
Integrated GST
Compensation cess
The value of inward supplies on which tax is payable under reverse charge is also not included in aggregate turnover for this purpose. ([CBIC GST][2])
6. Aggregate Turnover is Calculated PAN-Wise
This is an important point that businesses frequently misunderstand.
Suppose a company has:
Delhi turnover – ₹15 lakh
Uttar Pradesh turnover – ₹12 lakh
Maharashtra turnover – ₹18 lakh
Total turnover under the same PAN: ₹45 lakh
The taxpayer cannot simply consider each State independently for determining aggregate turnover.
The concept is based on the aggregate turnover of the relevant person on an all-India basis under the same PAN.
7. Section 23 – Persons Not Liable for Registration
Section 23 provides situations where a person is not liable for GST registration.
Broadly, this includes persons:
Exclusively engaged in supplying goods/services that are wholly exempt or not liable to GST, subject to the statutory provisions; and
Certain other persons as may be specified by the Government.
For example, a person exclusively dealing in supplies that are wholly exempt from GST generally does not become liable merely because the turnover crosses the normal threshold.
CBIC's FAQ also confirms that a person dealing exclusively in exempt supplies is generally not liable for registration. ([CBIC GST][2])
8. Compulsory GST Registration Under Section 24
This is one of the most important aspects of GST registration.
Crossing the turnover threshold is not the only basis for GST registration.
Section 24 provides for compulsory registration for specified categories of persons, subject to the exceptions and conditions prescribed under GST law.
Depending on the applicable provisions, these may include:
1. Certain persons making inter-State taxable supplies
Certain inter-State suppliers may fall under compulsory-registration provisions, although exemptions have been introduced for specified categories.
2. Casual taxable persons
A person occasionally making taxable supplies in a State/UT where he has no fixed place of business may be treated as a casual taxable person.
3. Non-resident taxable persons
Non-resident persons making taxable supplies in India may be required to obtain GST registration under the applicable provisions.
4. Persons liable under reverse charge
Certain persons liable to pay GST under specified reverse-charge provisions may be required to register, subject to applicable exemptions.
5. E-commerce-related persons
Certain suppliers and e-commerce operators can be subject to special registration requirements depending upon the nature of their activities and the applicable provisions.
6. Other notified categories
GST law may prescribe registration for other specified categories.
Therefore, a business should never determine registration liability merely by asking:
"Is my turnover below ₹40 lakh?"
The correct question is:
"Do I fall under the threshold exemption, or does any compulsory-registration provision apply to me?"
9. Inter-State Supplies and GST Registration
Inter-State transactions require careful examination.
The GST framework originally contained broad compulsory-registration provisions for persons making inter-State taxable supplies. However, the Government has subsequently provided exemptions for certain categories, particularly specified small service suppliers.
CBIC's GST update records an exemption for service suppliers having turnover up to ₹20 lakh making inter-State supplies, subject to the applicable conditions. ([CBIC GST][1])
Therefore, businesses should not blindly apply the old rule:
"Every inter-State supply automatically requires GST registration."
The current provisions, notifications and nature of supply should be examined.
10. Voluntary GST Registration
A person who is not otherwise liable for registration may choose to obtain GST registration voluntarily under the applicable provisions.
For example, a business with turnover below the threshold may voluntarily register because it wants to:
Deal with GST-registered corporate customers
Claim eligible Input Tax Credit
Improve business credibility
Participate in certain B2B opportunities
Expand business operations
Meet commercial requirements of customers/platforms
However, voluntary registration comes with compliance responsibilities.
Once registered, the taxpayer generally has to comply with the applicable GST provisions even though the original turnover was below the threshold.
11. GST Registration for Proprietorship
A sole proprietor can obtain GST registration for the proprietorship business.
The GST registration generally uses the proprietor's PAN.
Common documents include:
PAN
Aadhaar/identity details
Photograph
Mobile number
Email ID
Business address proof
Rent agreement/NOC, where applicable
Electricity bill or ownership proof
Bank details, where applicable
12. GST Registration for Partnership Firm
A partnership firm generally requires:
PAN of the partnership firm
Partnership deed
PAN/identity details of partners
Photograph
Authorized signatory details
Principal place of business proof
Additional place of business proof, where applicable
Bank details, where required
13. GST Registration for Company
A company may generally need:
Company PAN
Certificate of Incorporation
MOA
AOA
PAN and identity details of authorized signatory/directors
Board authorization
Registered office proof
Additional place of business proof, where applicable
Bank details, where required
14. GST Registration for LLP
An LLP may generally provide:
LLP PAN
Certificate of incorporation
LLP agreement
PAN/identity details of designated partners
Authorized signatory details
Business address proof
Bank details, where required
15. Documents for Principal Place of Business
The GST portal requires the applicant to establish the principal place of business.
Depending upon the situation, documents may include:
Owned property
Electricity bill
Property tax receipt
Ownership document
Municipal record
Rented property
· Rent/lease agreement
· Electricity bill or ownership proof of the landlord
Consent premises
Consent/NOC letter
Ownership/address proof of the person providing the premises
The exact document requirement may vary depending on the circumstances and GST portal requirements.
16. GST Registration Process
GST registration is generally applied for electronically.
Step 1 – Visit GST Portal
Access the official GST portal and select the registration facility.
Step 2 – Enter Basic Information
Provide:
PAN
Legal name
State/UT
Email
Mobile number
Step 3 – OTP Verification
Verify the mobile number and email through OTP.
Step 4 – Generate TRN
A Temporary Reference Number (TRN) is generated.
Step 5 – Complete Application
Provide details relating to:
· Business
· Promoters/partners/directors
· Authorized signatory
· Principal place of business
· Additional places
· Goods/services
· Bank accounts
· Other applicable information
Step 6 – Upload Documents
Upload the required supporting documents.
Step 7 – Authentication
Complete the applicable authentication/verification process.
Step 8 – Submit Application
Submit the application electronically.
Step 9 – Officer Verification
The application may be processed by the proper officer.
If clarification is required, the applicant may receive a notice and must respond within the prescribed period.
Step 10 – GSTIN
After approval, the taxpayer receives the GSTIN and registration certificate.
The registration rules provide for application through FORM GST REG-01 and prescribe the electronic registration process. ([CBIC GST][3])
17. What is GSTIN?
GSTIN stands for:
Goods and Services Tax Identification Number
It is a unique 15-character identification number allotted to a registered taxpayer.
Example:
09ABCDE1234F1Z5
GSTIN is commonly used in:
Tax invoices
GST returns
E-way bills
E-invoices
GST payments
GST correspondence
18. GST Registration Certificate
After approval, the taxpayer can download the GST registration certificate.
It generally contains:
GSTIN
Legal name
Trade name
Constitution of business
Principal place of business
Additional places
Date of registration
Type of registration
Other registration particulars
The taxpayer should verify all details immediately after registration.
19. When Should GST Registration Application Be Made?
A person who becomes liable for registration should apply within the time prescribed under the CGST Act and Rules.
Delay in registration can potentially result in:
Tax liability
Interest
Late compliance
Penalties
Other proceedings
Therefore, businesses should monitor turnover continuously.
Do not wait until the end of the financial year to determine GST registration liability.
20. Benefits of GST Registration
GST registration provides several potential business advantages.
Input Tax Credit
A registered person can claim eligible Input Tax Credit subject to the conditions and restrictions prescribed under GST law.
Business Credibility
GST registration can improve the credibility of a business, particularly for B2B transactions.
Corporate Customers
Many larger businesses prefer or require suppliers to maintain GST registration.
Inter-State Expansion
Registration can facilitate taxable business operations across States, subject to applicable provisions.
Proper Tax Invoicing
Registered businesses can issue GST tax invoices containing the required particulars.
21. Responsibilities After GST Registration
Obtaining GST registration does not end the compliance process.
A registered taxpayer may need to:
File GST returns
Pay GST within the prescribed time
Issue tax invoices
Maintain books and records
Reconcile sales
Reconcile Input Tax Credit
Monitor GSTR-2B and purchase records
Generate e-way bills where applicable
Comply with e-invoicing where applicable
Respond to GST notices
Amend registration details when required
The exact return and compliance requirements depend on the taxpayer's registration type and circumstances.
22. Amendment of GST Registration
Business information may change after registration.
For example:
Business address changes
Partner/director changes
Authorized signatory changes
Mobile/email changes
Addition of business activities
Addition of places of business
Bank account changes
The taxpayer should update the GST registration particulars through the prescribed amendment process.
23. Cancellation of GST Registration
GST registration may be cancelled in circumstances permitted under the law.
Cancellation may arise because of:
Closure of business
Transfer of business
Change in constitution
No longer being liable for registration
Voluntary cancellation
Certain compliance defaults
Registration obtained through fraud or suppression
Other circumstances specified under GST law
The CGST Act contains specific provisions governing cancellation. ([CBIC GST][4])
24. Revocation of Cancellation
Where registration has been cancelled by the proper officer in circumstances where revocation is permitted, the taxpayer may apply for revocation within the prescribed period and subject to applicable conditions.
Depending on the circumstances, the taxpayer may need to:
File pending returns
Pay tax
Pay interest
Pay late fees
Resolve the default that resulted in cancellation
25. Consequences of Failure to Obtain GST Registration
If a person is liable for GST registration but fails to register, the consequences can be significant.
Depending on the circumstances, the taxpayer may face:
Tax demand
Interest
Penalty
Recovery proceedings
Compliance issues
Restrictions relating to Input Tax Credit
Other legal consequences
Therefore, non-registration should not be treated as a method of avoiding GST liability.
26. Common Mistakes in GST Registration
Businesses frequently make mistakes such as:
Incorrect PAN details
The legal name should match the relevant PAN records.
Wrong business constitution
A proprietorship should not be incorrectly registered as a partnership or company.
Incorrect business address
The principal place of business should be accurately reported.
Inadequate address documents
The uploaded documents should properly establish the applicant's right to use the premises.
Incorrect HSN/SAC
Goods and services should be appropriately classified.
Incorrect partner/director information
All relevant persons should be correctly reported.
Ignoring GST clarification notices
Failure to respond to a clarification within the prescribed time can result in rejection of the application.
27. GST Registration – Practical Checklist
Before applying for registration, a business should check:
☑ PAN
☑ Aadhaar/identity details
☑ Mobile number
☑ Email ID
☑ Constitution of business
☑ Aggregate turnover
☑ Nature of goods/services
☑ Applicable threshold
☑ Whether Section 24 applies
☑ Principal place of business
☑ Rent agreement/NOC
☑ Electricity/address proof
☑ Partners/directors/promoters
☑ Authorized signatory
☑ HSN/SAC
☑ Additional places of business
☑ Bank account details
☑ Applicable authentication requirements
28. Frequently Asked Questions
Q1. Is GST registration mandatory at ₹40 lakh turnover?
For an exclusive supplier of eligible goods in States where the ₹40 lakh threshold applies, registration generally becomes mandatory once the applicable aggregate turnover exceeds ₹40 lakh, subject to conditions and exceptions.
Q2. Is the GST threshold ₹20 lakh or ₹40 lakh?
Both can be correct.
· Exclusive goods suppliers: generally ₹40 lakh in most States/UTs
· Service suppliers: generally ₹20 lakh in most States/UTs
· Specified States have lower thresholds.
Q3. Does every business with turnover below ₹40 lakh remain unregistered?
No. Certain persons may require compulsory registration under Section 24 or other applicable provisions even below the normal threshold.
Q4. Does GST registration apply to exempt businesses?
A person exclusively making wholly exempt/non-taxable supplies is generally not liable for registration under the applicable provisions of Section 23.
Q5. Can I voluntarily obtain GST registration?
Yes, subject to the applicable law. However, once voluntarily registered, the taxpayer must comply with the applicable GST requirements.
Q6. Is GST registration State-wise?
GST registration is generally obtained State/UT-wise, while aggregate turnover for threshold purposes is considered on the applicable PAN basis.
Q7. What happens if turnover crosses the threshold during the year?
The taxpayer should determine the date on which liability arises and apply for registration within the statutory time limit.
29. GST Registration: Threshold vs Compulsory Registration
A useful way to understand GST registration is:
Step 1 – Calculate Aggregate Turnover
⬇
Step 2 – Determine whether the ₹40 lakh / ₹20 lakh / ₹10 lakh threshold applies
⬇
Step 3 – Check whether the supplies are taxable
⬇
Step 4 – Check Section 23 exemptions
⬇
Step 5 – Check Section 24 compulsory-registration provisions
⬇
Step 6 – Determine GST registration liability
This approach is much safer than relying only on turnover.
30. Final Conclusion
GST registration under the CGST Act, 2017 is an important legal requirement for businesses, professionals and other persons undertaking taxable supplies.
The commonly applicable threshold limits are:
₹40 lakh – exclusive suppliers of goods in most States/UTs
₹20 lakh – suppliers of services in most States/UTs
₹20 lakh – exclusive suppliers of goods in specified States/UTs
₹10 lakh – suppliers of services in specified States
However, these thresholds should not be considered in isolation. The taxpayer must also examine the nature of supplies, aggregate turnover, applicable exemptions and compulsory-registration provisions.
A correct GST registration decision at the beginning can prevent future problems involving tax demands, interest, penalties and compliance disputes.
For businesses, GST registration should therefore be treated not merely as obtaining a GSTIN, but as the beginning of an ongoing compliance responsibility.
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Disclaimer: This article is intended for general educational and informational purposes. GST provisions, thresholds, exemptions and procedural requirements may be amended through legislation, notifications, circulars and rules. The applicability of registration should be determined based on the law and notifications applicable to the relevant period and facts of the taxpayer.
[1]: https://cbic-gst.gov.in/pdf/01062019-GST-An-Update.pdf "Registration and Threshold (1/19)"
[2]: https://cbic-gst.gov.in/# "Goods & Service Tax, CBIC, Government of India :: Frequently Asked Questions"
[3]: https://cbic-gst.gov.in/gst-registration-rules.html "Goods & Service Tax, CBIC, Government of India :: Registration"
[4]: https://cbic-gst.gov.in/pdf/CGST-Act-Updated-31082021.pdf "CHAPTER VI REGISTRATION"