Who Should Register for GST? Complete Eligibility Explained

Fill Your all GST Registration details
Primary Components of GST Registration
  • Authorized by Income Tax Department "e-Return Intermediary (ERI)" are entities who are authorized to e-file Income Tax Returns on behalf of taxpayers.
  • Registered with Startup India is duly certified under GOI's Startup India scheme.
  • Supported by iStart (Government of Rajasthan. Initiative for startups).
  • Supporting Government Making India Digital.
  • 40,000+ partners across India, and the number is growing every day.
  • Covering 19,000+ Pincodes Across India.
  • Assistance in e-Verification of the Filed Returns.
  • Central Goods and Services Tax (CGST): This tax is Levied by the Central Government on goods and services sold within a state. It replaces taxes like service tax and central excise.
  • State Goods and Services Tax (SGST): Charged by the State Government on the same intra-state sale. It replaces state taxes like VAT and entertainment tax.
  • Integrated Goods and Services Tax (IGST): Applied by the Central Government on inter-state sales and imports/exports. The amount is shared between Centre and the destination state.

Pricing Summary

  • Web Online CA Fee
    Rs. 1499/-
  • Complete By*
    11-Aug-2025

Documents Required for New GST Registration

  • Rent Agreement with Electricity Bill
  • NOC with Electricity Bill
  • An Applicant Photo
  • Aadhaar Card
  • PAN Card Of Firm
  • Property Tax Receipt
Updated On 28-July-2025

Who Should Register for GST? Complete Eligibility Explained

Goods and Services Tax (GST) is one of the most significant tax reforms in India. While it has simplified indirect taxation by combining multiple taxes into one, understanding who needs to register for GST is still confusing for many business owners, startups, and professionals.

If you're running a business, providing services, or selling products, it’s important to know whether GST registration is mandatory for you, or whether you can benefit by registering voluntarily. This guide explains the complete eligibility for GST registration in simple terms.

Who is Required to Register for GST?

As per the GST Act, the following categories of taxpayers must register for GST:

1. Businesses Exceeding Turnover Threshold

If your aggregate turnover exceeds:

•  ₹40 lakh for supply of goods (₹20 lakh in special category states)

•  ₹20 lakh for supply of services (₹10 lakh in special category states)

•  Then GST registration becomes mandatory.

Note: Special category states include Manipur, Mizoram, Nagaland, and Tripura.

2. Interstate Suppliers

If you supply goods or services from one state to another, you are required to register for GST regardless of your turnover.

Example: If you're a small manufacturer in Rajasthan selling products to customers in Delhi, GST registration is mandatory even if your turnover is below ₹40 lakh.

3. E-commerce Sellers

Businesses selling through online marketplaces like Amazon, Flipkart, or their own websites must obtain GST registration irrespective of turnover.

This includes:

•  Product sellers

•  Dropshippers

•  Service providers operating through digital platforms

4. Casual Taxable Persons

If you occasionally supply goods or services in a different state without a fixed place of business, you must register as a casual taxable person.

Example: Setting up a temporary exhibition stall in another state.

5. Non-resident Taxable Persons

Non-residents who occasionally supply goods or services in India are required to register under GST.

6. Agents and Input Service Distributors

Any person acting as an agent supplying goods or services on behalf of another registered person must get registered.

Input Service Distributors (ISD) who distribute input tax credit to branches also need to register.

7. Reverse Charge Mechanism (RCM) Liability

If you're liable to pay tax under the reverse charge mechanism, registration is mandatory.

This applies to businesses that:

•  Procure services from unregistered vendors

•  Fall under notified categories of RCM applicability

8. Voluntary Registration

Even if you are not required to register under the above criteria, you can still opt for voluntary registration to avail benefits like:

•  Input tax credit

•  Increased credibility with clients

•  Participation in e-commerce and government tenders

GST Registration for Specific Professions and Sectors

Here are some examples of common professionals and sectors that may need GST registration:

Sector / Profession Sector / Profession
Freelancers and Consultants Required if income exceeds ₹20 lakh
Bloggers and YouTubers Required if earning from ads or affiliate income
Cab Aggregators (Ola, Uber) Must register regardless of turnover
Real Estate Agents Required if turnover exceeds ₹20 lakh
Exporters and Importers Mandatory, regardless of turnover
Manufacturers and Traders Required based on turnover and interstate supply
Event Management Companies Often interstate, hence must register
Commission Agents Mandatory under agent clause

Consequences of Not Registering for GST

If you're eligible but fail to register:

•  You may face a penalty of 10% of the tax amount due (minimum ₹10,000)

•  If there is deliberate fraud, the penalty may go up to 100% of tax due

•  You will not be able to claim Input Tax Credit (ITC)

•  Your business may face compliance issues with clients or buyers

FAQ's About GST Number

1. I am a freelancer working for international clients. Should I register?

Yes, if your annual income exceeds ₹20 lakh, GST registration is mandatory. Export of services is zero-rated, but registration is still required.

2. Can I register even if I’m not required to?

Yes, voluntary registration is allowed and can be beneficial for growing businesses.

3. I provide consulting services and my income is ₹18 lakh. Do I need to register?

Not mandatory yet, but if you cross ₹20 lakh in a financial year, registration becomes compulsory.

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