Starting a new business in India in 2025? One of your first compliance tasks is figuring out whether you need GST registration — and if so, how to get it done correctly and on time.
This guide covers everything: threshold limits, who must register, required documents, the step-by-step online process, and what happens if you delay.
Who Needs GST Registration?
GST registration is mandatory once your aggregate annual turnover crosses the prescribed threshold — or immediately if you fall under certain mandatory categories, regardless of turnover.
| Business Type | Threshold Limit |
|---|---|
| Goods suppliers (normal states) | ₹40 lakh |
| Service providers | ₹20 lakh |
| Special category states (Northeast, Himachal, Uttarakhand, J&K) | ₹10 lakh |
| E-commerce operators / sellers on Amazon, Flipkart, etc. | Mandatory regardless of turnover |
| Inter-state supply of goods/services | Mandatory regardless of turnover |
| Casual taxable persons | Mandatory regardless of turnover |
Documents Required
Before you begin the online registration process, keep these documents ready (scanned copies in JPEG/PDF format, each under 1 MB):
Step-by-Step Registration Process
Visit GST Portal
Go to gst.gov.in → Services → Registration → New Registration. Select "Taxpayer" as the type.
Fill Part A – Generate TRN
Enter your PAN, mobile number, email ID. An OTP will be sent to both your mobile and email. Submit to generate a Temporary Reference Number (TRN) valid for 15 days.
Fill Part B – Business Details
Log in with TRN, complete Part B with business name, nature of business, principal place of business address, bank details, and upload all required documents.
Aadhaar Authentication
Opt for Aadhaar-based authentication for faster processing (approved within 3 working days). Alternatively, choose physical verification (takes longer).
Submit with DSC / EVC
Companies and LLPs must sign using DSC. Proprietors and partnerships can use EVC (OTP-based). Submit the application.
Receive ARN
You'll receive an Application Reference Number (ARN) by SMS and email. Track your application status at the portal using this ARN.
Receive GSTIN
If approved (usually within 3–7 working days for Aadhaar-authenticated applications), your 15-digit GSTIN is issued and the GST Registration Certificate is available for download.
Composition Scheme — An Alternative for Small Businesses
If your annual turnover is below ₹1.5 crore (₹75 lakh for service providers), you may opt for the Composition Scheme — paying GST at a lower flat rate (1% for traders, 5% for restaurants, 6% for service providers) without the need to file monthly returns.
Benefits of Composition Scheme:
- Lower tax rates (1–6% of turnover instead of standard 5–28%)
- Simplified compliance — only one quarterly return (CMP-08) and one annual return (GSTR-9A)
- No invoice-level reporting required
Limitations:
- Cannot collect GST from customers (no tax invoice)
- Cannot claim Input Tax Credit
- Cannot supply goods/services inter-state
- Not available for e-commerce operators or service providers (except restaurants)
Penalties for Late or Non-Registration
If you are required to register for GST and fail to do so, the consequences can be severe:
- Penalty for not registering: 10% of tax due or ₹10,000 — whichever is higher
- Deliberate evasion: 100% of tax due
- Demand and recovery: The department can issue a show cause notice and demand all unpaid tax with interest
What to Do After Registration
- Display your GSTIN on your business signboard and all invoices
- Start issuing tax invoices with correct GST components (CGST+SGST for intra-state, IGST for inter-state)
- File GSTR-1 by 11th of the following month (monthly filers)
- File GSTR-3B by 20th of the following month and pay GST liability
- Maintain GST-compliant books of accounts for at least 6 years