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

> Register for GST above ₹40 lakh (goods) or ₹20 lakh (services) turnover — lower in some states — or always for inter-state and online sales. Steps, documents, 3-day route, costs.

- URL: https://2search.in/knowledge/articles/oct-26/gst-registration-who-needs-it
- Genre: Business
- Country: India
- Published: 2026-10-27
- Updated: 2026-10-27
- Publisher: 2search (https://2search.in)

> **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: who needs it, limits, documents and steps (2026) Breakdown & Visual Guide](/images/articles/gst-registration-who-needs-it/diagram.svg)

## GST registration limits (thresholds)

| Business type | Normal states | Special-category states* |
| --- | --- | --- |
| **Supplying only goods** | **₹40 lakh** | ₹20 lakh |
| **Supplying services** (or goods + services) | **₹20 lakh** | ₹10 lakh |

\*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)

| Slab | Typical items |
| --- | --- |
| **0% / exempt** | Fresh food, milk, healthcare and education services, some essentials |
| **5%** | Many daily-use goods, packaged foods, medicines and some services |
| **18%** | Most goods and services — the standard rate, including most professional services |
| **40%** | Luxury and sin goods (for example tobacco products, aerated drinks, high-end cars) |

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

| | Composition | Regular |
| --- | --- | --- |
| Turnover limit | Up to **₹1.5 crore** (goods; ₹75 lakh in some states); **₹50 lakh** for service providers | No limit |
| Tax rate | **1%** (traders/manufacturers), **5%** (restaurants), **6%** (services) of turnover | Normal GST rates |
| Input tax credit | **Not allowed** | Allowed |
| Can collect GST from customers | **No** — issue a "bill of supply" | Yes |
| Inter-state sales | **Not allowed** | Allowed |
| Returns | Quarterly CMP-08 + yearly GSTR-4 | Monthly/quarterly GSTR-1 and GSTR-3B |

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](/how-to-start-freelancing) 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](/tools/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](https://www.gst.gov.in/)
- [Business Today — New GST rules: 3-day registration, 3-year filing limit (Nov 2025)](https://www.businesstoday.in/amp/personal-finance/tax/story/new-gst-rules-from-nov-2025-3-day-registration-3-year-filing-limit-faster-refunds-501250-2025-11-07)
- [KPMG — Recommendations of the 56th GST Council meeting (GST 2.0)](https://www.in.kpmg.com/taxflashnews/KPMG-Flash-News-Recommendations-of-56th-GST-Council-meeting.pdf)
- [ClearTax — GST registration limit and who should register](https://cleartax.in/s/gst-registration-limit)
- [CBIC — GST FAQs](https://cbic-gst.gov.in/)