GST registration: who needs it, limits, documents and steps (2026)

Quick answer: You must register for GST when your yearly turnover crosses ₹40 lakh for goods or ₹20 lakh for services (₹20 lakh / ₹10 lakh in some special-category states). Registration is compulsory regardless of turnover for inter-state supply of goods, selling through e-commerce marketplaces (with some exemptions for small sellers), casual taxable persons, and businesses under reverse charge. Apply free at gst.gov.in with PAN, Aadhaar, business address proof and bank details. Low-risk small businesses can now get registration in about 3 working days.

Key takeaways

• Registration on the GST portal is free — fees are only charged by consultants.
• Since 22 September 2025 ("GST 2.0"), most goods and services fall in two main slabs: 5% and 18%, with 40% for luxury and "sin" goods.
• Freelancers exporting services need GST only above ₹20 lakh, and can export without paying GST under a LUT.
• The composition scheme (turnover up to ₹1.5 crore for goods) offers simple, low-rate tax — but no input tax credit.
• Returns older than 3 years can no longer be filed, so stay regular once registered.

GST is the single indirect tax on goods and services across India. Registering when you need to — and not before you need to — saves money and paperwork. This guide explains who must register, the turnover limits, voluntary registration, the documents, the step-by-step process and what happens after.

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#GST registration limits (thresholds)

*Special-category states with lower limits include Manipur, Mizoram, Nagaland and Tripura (₹10 lakh for services, ₹20 lakh for goods); some others such as Arunachal Pradesh, Meghalaya, Sikkim, Puducherry, Telangana and Uttarakhand use the ₹20 lakh limit for goods. Check your state on the GST portal.

Turnover means your total all-India sales under the same PAN — taxable, exempt and export sales — not profit.

The ₹40 lakh goods limit doesn't apply to businesses selling certain items like ice cream, pan masala and tobacco, or in some states that opted out — they use ₹20 lakh.

#When GST registration is compulsory (any turnover)

• Inter-state supply of goods (selling goods to another state). Service providers making inter-state supplies get the threshold benefit.
• Selling on e-commerce marketplaces like Amazon or Flipkart — although small sellers of goods within one state, and service providers below the limit, have been given relief. Check the marketplace's current rules.
• E-commerce operators themselves.
• Casual taxable persons (temporary stalls, exhibitions in another state).
• Non-resident taxable persons.
• Businesses that must pay tax under reverse charge.
• Input Service Distributors and agents supplying on behalf of others.
• People required to deduct TDS or collect TCS under GST.

#Should you register voluntarily?

You can register even below the limit. It can help if:

• Your customers are GST-registered businesses that want to claim input tax credit.
• You want to sell on marketplaces or to large companies that require a GSTIN.
• You buy a lot of inputs with GST and want to claim the credit.
• You plan to grow past the threshold soon.

Once registered, you must file returns and pay GST even if turnover is small. Weigh the extra compliance first.

#GST rates after GST 2.0 (from 22 September 2025)

The older 12% and 28% slabs were largely merged into 5% and 18%. Always check the exact rate for your product's HSN or service's SAC code.

#Documents you'll need

For a proprietor (individual):

• PAN and Aadhaar of the owner
• Passport-size photo
• Business address proof: electricity bill, property tax receipt, or rent agreement + owner's NOC
• Bank account proof: cancelled cheque, passbook first page, or bank statement

For a partnership / LLP / company:

• PAN of the business
• Partnership deed / LLP agreement / Certificate of Incorporation
• PAN, Aadhaar and photos of partners or directors
• Authorisation letter or board resolution for the authorised signatory
• Address proof and bank proof, as above

Tip: Working from home? You can use your home address as the principal place of business — attach the electricity bill and, if the house isn't in your name, an NOC from the owner.

#Step-by-step: apply for GST registration online

1. Go to gst.gov.in → Services → Registration → New Registration.
2. Part A: choose "Taxpayer", your state and district, enter the business name (as per PAN), PAN, email and mobile. Verify with OTPs. You get a Temporary Reference Number (TRN).
3. Log in with the TRN and fill Part B:
   • Business details, constitution, date of starting business
   • Promoters / partners
   • Authorised signatory
   • Principal and additional places of business
   • Goods and services (HSN / SAC codes)
   • Bank account
4. Choose Aadhaar authentication — this speeds up approval and often avoids a physical visit.
5. Upload documents and submit with EVC (OTP) or a digital signature (DSC is required for companies and LLPs).
6. You receive an ARN to track the application.
7. If an officer raises a query, reply within 7 working days on the portal.
8. Once approved, download your GST registration certificate (Form REG-06) with your 15-digit GSTIN.

#How long does it take?

• Simplified registration (from November 2025): low-risk applicants — flagged by the system's analytics, or those who declare their monthly output tax won't exceed ₹2.5 lakh — can get registration in about 3 working days.
• Normal route: usually 7 working days with Aadhaar authentication; up to 30 days if a physical verification is needed.

#Composition scheme: a simpler option for small businesses

Good for small local shops and restaurants selling to consumers. Not good if you sell to businesses or across states.

#After registration: what you must do

• Display your GSTIN at your business and on invoices.
• Issue GST-compliant invoices with GSTIN, HSN/SAC, tax breakup.
• File returns: GSTR-1 (sales) and GSTR-3B (summary + tax payment) — monthly, or quarterly under the QRMP scheme if turnover is up to ₹5 crore.
• Pay tax by the due date to avoid 18% interest.
• Late fee for missing returns: generally ₹50 per day (₹20 for nil returns), capped.
• Returns more than 3 years past due can't be filed anymore.

#GST for freelancers and service exporters

• Freelancers serving Indian clients need GST above ₹20 lakh (₹10 lakh in special-category states). Most professional services are taxed at 18%.
• Exporting services to foreign clients (paid in foreign currency) is a zero-rated supply. Below ₹20 lakh, you don't need GST at all.
• Above the limit, register and file a Letter of Undertaking (LUT) each year (Form RFD-11) to export without paying IGST.

See our freelancing guide for tax and payments.

#Common mistakes

• Registering too early and then missing returns — penalties pile up even with zero sales.
• Wrong HSN/SAC codes, leading to wrong tax rates.
• Not claiming input tax credit because invoices don't match in GSTR-2B.
• Charging GST without being registered — not allowed.
• Ignoring officer queries — the application is rejected after 7 working days.

Tip: Need to add or remove GST on an invoice? Use the GST calculator — it shows the CGST, SGST and IGST split at the GST 2.0 rates.

#Frequently asked questions

Is GST registration mandatory for small businesses?

Only if turnover crosses ₹40 lakh (goods) or ₹20 lakh (services), or if you fall in a compulsory category like inter-state goods supply.

Is GST registration free?

Yes, on gst.gov.in. You only pay if you hire a consultant.

Can I register for GST without a shop or office?

Yes, you can use your home address as the place of business with proper address proof.

How long does GST registration take?

About 3 working days under the simplified scheme for low-risk applicants, otherwise usually around 7 working days.

Do freelancers need GST?

Only above ₹20 lakh turnover (₹10 lakh in some states). Exports of services can be made without GST under a LUT.

Can I cancel GST registration?

Yes, apply for cancellation on the portal (Form REG-16) if your business closes or turnover stays below the limit.

What is the GST rate on services?

Most professional and IT services are taxed at 18%. Some services have lower rates or exemptions.

#Sources

• GST Portal — New registration
• Business Today — New GST rules: 3-day registration, 3-year filing limit (Nov 2025)
• KPMG — Recommendations of the 56th GST Council meeting (GST 2.0)
• ClearTax — GST registration limit and who should register
• CBIC — GST FAQs