Registration Thresholds
GST registration thresholds under Section 22 of the CGST Act: for supply of goods, the threshold is ₹40 lakh aggregate annual turnover (for most states — increased from ₹20 lakh by Notification 10/2019-CT). For supply of services, the threshold remains ₹20 lakh. For special category states listed in Article 279A(4)(g) of the Constitution (Manipur, Mizoram, Nagaland, Tripura), the threshold is ₹10 lakh for both goods and services. "Aggregate turnover" includes all taxable supplies, exempt supplies, exports, and inter-state supplies — but excludes GST itself, inward supplies on which tax is paid under RCM, and value of supplies on behalf of principals.
Mandatory Registration Regardless of Turnover
Section 24 of the CGST Act mandates registration for certain categories regardless of turnover: persons making inter-state taxable supplies of goods or services; casual taxable persons (those who occasionally supply in a state where they have no fixed place of business); non-resident taxable persons; e-commerce operators (platforms like Amazon, Flipkart) and persons supplying through e-commerce operators (sellers on these platforms); persons liable to pay tax under reverse charge mechanism (RCM) under Section 9(3) or 9(4); input service distributors; and persons required to deduct TDS under Section 51 (government entities and PSUs with contract value above ₹2.5 lakh).
Registration Process and Timeline
GST registration is applied for on the GST portal (gst.gov.in) using Form GST REG-01. Documents required: PAN of the business/proprietor, Aadhaar of the proprietor/partners/directors, proof of business address (electricity bill, rent agreement, or NOC from owner), bank account details (cancelled cheque or bank statement), and photographs. The GST officer must process the application within 7 working days if Aadhaar authentication is completed. If Aadhaar authentication is not done or the officer requires physical verification, the timeline extends to 30 days. GSTIN is issued in the format: 2-digit state code + 10-digit PAN + 3-character entity identifier.
Penalty for Non-Registration
Failure to register for GST when required attracts a penalty under Section 122 of the CGST Act: 10% of the tax due or ₹10,000, whichever is higher. If the non-registration is deliberate (tax evasion), the penalty is 100% of the tax due. Additionally, the unregistered supplier cannot collect GST from customers (Section 9 — only registered persons can charge GST), cannot claim ITC on purchases, and all supplies made without registration are treated as tax-evaded supplies. The GST Department can also issue a suo motu registration under Section 25(8) if it detects an unregistered liable person.