Overview & Legal Framework

GST registration is mandatory under the Central Goods and Services Tax (CGST) Act, 2017. It converts a person or entity into a registered taxable person, granting a unique 15-digit GSTIN and enabling them to collect tax, claim Input Tax Credit, and file returns.

📖 Governing Law: Sections 22–30 of the CGST Act, 2017 read with Rules 8–26 of the CGST Rules, 2017. Mirrored under SGST/UTGST Acts. For inter-state supplies, IGST Act, 2017 Section 24 applies mandatorily.
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Section 22 — Threshold-Based Sec 22

Every supplier whose aggregate annual turnover exceeds the prescribed threshold in the preceding financial year is required to obtain registration. Aggregate turnover includes all taxable, exempt, and export supplies under the same PAN across India.

Section 24 — Mandatory Registration Sec 24

Eleven categories of persons must register regardless of turnover — including inter-state suppliers, e-commerce operators, casual taxable persons, non-resident taxable persons, and those liable to pay under reverse charge.

Section 25 — Voluntary Registration Sec 25

A person below the threshold may voluntarily register to access ITC benefits and lend credibility to business. Once voluntarily registered, GST obligations (filing, payment) apply as if mandatory. Cannot deregister within 1 year.

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Section 10 — Composition Scheme Sec 10

Eligible small taxpayers can opt for the composition scheme — pay GST at a flat rate on turnover, file quarterly returns, and avoid detailed compliance. Cannot collect GST from customers or claim ITC. Turnover limit: ₹1.5 Cr (₹75L for services).

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Section 27 — Casual & Non-Resident Sec 27

Casual Taxable Persons (CTP) and Non-Resident Taxable Persons (NRTP) must register at least 5 days before commencement of business. Registration valid for 90 days (extendable). Must deposit advance tax equal to estimated liability at time of registration.

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Section 29 — Cancellation Sec 29

Registration can be cancelled by the proper officer for non-compliance, or on an application by the registered person if business is discontinued, transferred, or turnover falls below threshold. Section 30 allows revocation within 30 days of cancellation order.

Threshold Limits for Registration

Threshold limits under Section 22 as amended by Notification No. 10/2019–CT dated 07.03.2019 and Notification No. 02/2019–CT dated 07.03.2019. State-wise applicability differs for special category states.

₹40 Lakh
Goods Suppliers — General States
Applicable to suppliers exclusively engaged in supply of goods. Increased from ₹20L by Notification 10/2019-CT w.e.f. 01.04.2019. States can opt for ₹20L (10 states opted for lower limit).
₹20 Lakh
Services / Mixed Suppliers — General States
Applicable to service providers and businesses supplying both goods and services in general category states. Unchanged from original CGST Act provision.
₹20 Lakh
Goods — Special Category States
Manipur, Mizoram, Nagaland, Tripura: ₹20L threshold for goods. Notification 10/2019-CT provides different limits for NE states opting for this threshold.
₹10 Lakh
Services — Special Category States
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, J&K, Himachal Pradesh. ₹10L for services/mixed supplies. Notification 02/2019-CT dated 07.03.2019.
⚠ Aggregate Turnover — Section 2(6): Includes the aggregate value of (a) all taxable supplies, (b) exempt supplies, (c) exports of goods or services, and (d) inter-state supplies — computed on an all-India basis under the same PAN. Excludes: inward supplies subject to reverse charge and CGST/SGST/IGST/UTGST/Compensation Cess.

State-wise Threshold Options Notif. 10/2019-CT

State / UTThreshold — GoodsThreshold — ServicesCategory
Maharashtra, Gujarat, Karnataka, Tamil Nadu, Delhi, UP, Rajasthan, AP, Telangana, West Bengal, Odisha, Kerala, Punjab, Haryana, Goa, Bihar, MP, Chhattisgarh, Jharkhand₹40 Lakh₹20 LakhGeneral
Uttarakhand, Himachal Pradesh, J&K₹40 Lakh₹10 LakhSpecial
Arunachal Pradesh, Assam, Meghalaya, Sikkim₹20 Lakh₹10 LakhNE Special
Manipur, Mizoram, Nagaland, Tripura₹20 Lakh₹10 LakhNE Special
Puducherry, Andaman & Nicobar, Dadra & NH, Daman & Diu, Lakshadweep, Chandigarh₹40 Lakh₹20 LakhUT — General

Mandatory Registration — Section 24

These eleven categories of persons must register under GST regardless of their turnover. Failure to register attracts penalty equal to tax evaded or ₹10,000 — whichever is higher.

🚫 Zero-Threshold Obligation: Persons listed under Section 24 have NO turnover threshold. Even a single rupee of supply triggers immediate registration obligation, to be completed before commencement of such supply.
Sec 24(i)

Inter-State Suppliers of Goods

Any person making inter-state taxable supply of goods must compulsorily register, irrespective of turnover. Exception: Persons exclusively supplying goods under Notification 10/2017-IT (certain goods like handloom fabrics, handicrafts) are exempt from mandatory registration if turnover is below threshold.

Sec 24(i)

Inter-State Suppliers of Services

Mandatory registration for inter-state service providers was removed by Notification 10/2017-IT. Now, service providers with aggregate turnover below ₹20L (₹10L in special states) are exempt from compulsory registration for inter-state services (except notified services like OIDAR).

Sec 24(ii)

Casual Taxable Person (CTP)

A person making occasional taxable supplies in a state where they have no fixed place of business. Must register at least 5 days before supply. Advance deposit of estimated tax liability required. Registration valid for 90 days — extendable by a further 90 days on application in Form GST REG-11.

Sec 24(iii)

Persons Liable to Pay Tax Under Reverse Charge

Any person who is required to pay GST under reverse charge mechanism — whether for notified services (Section 9(3), Notification 13/2017-CT Rate) or inward supplies from unregistered persons (Section 9(4)) — must mandatorily register regardless of turnover.

Sec 24(iv)

Electronic Commerce Operators (ECO)

Persons operating an e-commerce platform through which other persons supply goods or services must mandatorily register. This includes Amazon, Flipkart, Swiggy, Zomato, Ola, Uber, Meesho, etc. ECOs are required to collect TCS @ 1% and deduct TDS where applicable.

Sec 24(v)

Non-Resident Taxable Person (NRTP)

A foreign person occasionally supplying goods or services in India without a fixed establishment. Must apply at least 5 days before commencement. Registration in Form GST REG-09. Valid for 90 days. Advance tax deposit mandatory. Represented by authorized agent in India.

Sec 24(vi)

Input Service Distributor (ISD)

An office of a supplier that receives input invoices for services used by its branches must register separately as an ISD to distribute ITC to branches. W.e.f. 01.04.2025 (Finance Act 2024), the ISD mechanism is mandatory for distributing ITC of common input services to distinct persons — cross-charge is no longer the sole option.

Sec 24(vii)

Persons Liable to Deduct TDS — Section 51

Government departments, PSUs, local authorities, and government agencies making inward supplies above ₹2.5L from a registered supplier must deduct TDS @ 2% (1% CGST + 1% SGST / 2% IGST). Register in Form GST REG-07. TDS certificate issued in Form GSTR-7A.

Sec 24(viii)

E-Commerce Suppliers — Section 52

Persons supplying goods or services through an e-commerce operator (except services notified under Section 9(5) like transportation, accommodation, housekeeping) must register mandatorily, regardless of their turnover.

Sec 24(ix)

Suppliers of Online Information & Database Access Services (OIDAR)

Foreign entities supplying OIDAR services (cloud services, digital content, online gaming, digital advertising, e-learning, etc.) to non-taxable online recipients in India must register and pay IGST. Simplified registration in Form GST REG-10 without requiring PAN.

Sec 24(x) & (xi)

Any Other Notified Person

Central Government may, by notification, specify other categories. Currently includes: persons supplying goods through ECO (Section 24(ix)), persons making supply of services notified under Section 9(5) (transportation, accommodation, delivery) — the ECO pays tax on their behalf but the supplier must register separately.

Voluntary Registration — Section 25(3)

A person not required to be registered may voluntarily obtain registration. Once opted, they cannot deregister before 1 year from the effective date of registration.

Benefits of Voluntary Registration

Claim Input Tax Credit on purchases. Issue tax invoices, expanding B2B customer base. Compete effectively with registered suppliers. Access government contracts requiring GSTIN. Ability to supply inter-state without restrictions (for goods).

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Obligations Triggered

Must file all GST returns (GSTR-1, GSTR-3B, GSTR-9). Must pay GST on all taxable supplies. Cannot opt out for at least 1 year. All compliance obligations of a registered taxpayer apply. Subject to audit, assessment, and notice from GST department.

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Multiple Registrations — Section 25(2)

A person with business in multiple states must take separate registration in each state. Within a state, a person with multiple business verticals Rule 11 can take separate registration for each vertical (Form GST REG-01 per vertical). Each GSTIN treated as a distinct person.

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Deemed Registration — Section 25(10)

If the proper officer does not act within 7 working days (for Aadhaar-authenticated applications) or 30 days (without authentication) from submission of complete application, registration is deemed granted. ARN (Application Reference Number) is generated on submission.

Composition Scheme — Section 10

A simplified compliance option for small taxpayers. Pay GST at a flat rate on turnover, file quarterly, but cannot collect tax from customers or claim ITC. Opt-in via GST CMP-02 before the start of the financial year.

Category of TaxpayerTurnover LimitGST RateFormReturnKey Restriction
Manufacturers (other than notified goods)₹1.5 Crore1% (0.5% CGST + 0.5% SGST)CMP-02CMP-08 (Qly) + GSTR-4 (Annual)No ITC; cannot supply inter-state
Traders (goods)₹1.5 Crore1% (0.5% + 0.5%)CMP-02CMP-08 + GSTR-4No ITC; cannot supply inter-state
Restaurants (not serving alcohol)₹1.5 Crore5% (2.5% + 2.5%)CMP-02CMP-08 + GSTR-4No ITC on inputs
Service Providers (CGST Rule 7) Notif. 2/2019-CT₹50 Lakh6% (3% + 3%)CMP-02CMP-08 + GSTR-4Cannot supply inter-state services
Mixed Supply (goods + services; services ≤10% of turnover)₹1.5 Crore1% on total turnoverCMP-02CMP-08 + GSTR-4Service component must not exceed 10%
❌ Composition Scheme — Ineligible Categories: Manufacturers of notified goods (ice cream, pan masala, tobacco products — Notification 14/2019-CT), suppliers of services other than restaurants/eligible service providers, inter-state suppliers, e-commerce operators collecting TCS, and casual taxable persons cannot opt for composition.
⏰ Withdrawal from Composition: A composition taxpayer exceeding the turnover limit during the year must apply for regular registration within 7 days of exceeding the limit — filing Form CMP-04. All ITC provisions applicable from the date of withdrawal.

Documents Required for Registration

Documents vary based on constitution of business. All documents must be uploaded in PDF/JPEG format (max 1 MB each) on the GST Portal. Aadhaar authentication is mandatory w.e.f. 21.08.2020 — Notification 38/2020-CT.

Document CategoryProprietorshipPartnership / LLPPrivate / Public Ltd CompanyTrust / Society / Club
PAN Card Proprietor's PANFirm's PANCompany PANEntity PAN
Aadhaar Authentication Proprietor's Aadhaar (OTP/biometric)All partners' AadhaarAuthorised signatory AadhaarAuthorised signatory
Constitution Proof N/APartnership deed / LLP agreementCertificate of Incorporation (MOA + AOA)Trust deed / Registration certificate
Principal Place of Business Own property: Property tax receipt / Electricity bill / Municipal khata copy. Rented: Rent/lease agreement + NOC from owner + Electricity bill. Consent basis: Consent letter + supporting document.
Bank Account Cancelled cheque / first page of passbook / bank statement (showing account number, IFSC, name, branch). Required within 45 days of GSTIN grant (Form REG-31 notice if not submitted timely).
Photograph ProprietorAll partners / designated partnersDirectors + Authorised signatoryTrustees / Members of Managing Committee
Authorization N/AAuthorisation letter for primary signatoryBoard Resolution on letterheadResolution of managing body
Digital Signature Certificate (DSC) Optional (EVC via OTP available)Required for LLPMandatory (Class 2/3 DSC)As applicable
📍 Additional Locations (Branch/Warehouse): Each additional place of business must be declared in Part B of GST REG-01. Documents required: Proof of address (rent agreement / electricity bill / property tax receipt) for each additional place. Branch registration is not a separate GSTIN — it is added to the same GSTIN under the same state registration.

Registration Process — Step by Step

Governed by Rule 8 (application), Rule 9 (verification), Rule 10 (grant of registration) of CGST Rules. The entire process is online through the GST Common Portal — no physical visit required.

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Part A — TRN

Enter PAN, mobile, email. OTP verification. Temp Ref No. (TRN) generated

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Aadhaar Auth

Aadhaar OTP / biometric verification for applicant and key persons

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Part B — Details

Business details, nature, place, HSN/SAC codes, bank, promoters info

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Submit + ARN

Submit form with DSC/EVC. Application Reference Number (ARN) generated

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Officer Verification

Proper officer verifies within 7 days (Aadhaar) or 30 days (non-Aadhaar)

GSTIN Issued

15-digit GSTIN + Registration Certificate in Form GST REG-06

Detailed Timeline Rule 9 & 10

1
Day 0 — Submit Application Day 0
File Form GST REG-01 on the GST portal. ARN generated immediately. Aadhaar authentication link sent to applicant's mobile/email. Application status: Pending for Aadhaar Authentication.
2
Aadhaar Authentication Within 15 days of ARN
All specified persons (proprietor, all partners/directors, authorised signatory) must complete Aadhaar authentication via OTP within 15 days of ARN generation. Failure results in application being treated as non-Aadhaar authenticated — verification timeline extends to 30 days. Rule 8(4A)
3
Officer Scrutiny — 7 Working Days (Aadhaar Auth) Day 1–7
If Aadhaar is authenticated: Proper officer must either approve or issue Show Cause Notice (Form GST REG-03) within 7 working days of submission of complete application. If no action: Registration deemed granted. Section 25(10) read with Rule 9(1)
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Show Cause Notice — Form GST REG-03 If deficiency found
Officer issues REG-03 seeking clarification or additional documents. Applicant must reply in Form GST REG-04 within 7 working days of REG-03. If reply not satisfactory, officer rejects in Form GST REG-05. Rule 9(2) & 9(3)
4
Officer Scrutiny — 30 Days (Non-Aadhaar) Day 1–30
For applications without Aadhaar authentication (or where authentication failed): Physical verification of principal place of business may be conducted before approval. Officer must act within 30 days. Rule 9(1) proviso
GSTIN Granted — Form GST REG-06 Effective date
15-digit GSTIN issued. Registration Certificate in Form GST REG-06 available for download on GST Portal. Effective Date: Date of application filing (if liable from that date) or date from which liable to register, whichever is earlier. For voluntary: Date of grant of registration.
5
Bank Account Submission Within 45 days
Registered person must submit bank account details within 45 days of GSTIN grant or before filing GSTR-3B for the first return period — whichever is earlier. Non-submission triggers Form GST REG-31 notice and potential suspension. Rule 10A
✅ Understanding Your 15-Digit GSTIN:
27  AAABC1234D  1  Z  5

27 = State code (Maharashtra) | AAABC1234D = PAN of entity | 1 = Entity number for same PAN in state | Z = Default alphabet | 5 = Check digit (numeric)

Schedules to CGST Act — Supply Classification

The CGST Act contains three schedules that determine the nature of supply and registration implications. Understanding these schedules is critical to determine GST registration requirement and tax treatment.

These activities are treated as supply of goods or services and therefore trigger GST liability and registration obligations even when made without consideration (i.e., free of charge) between related persons or distinct persons.

Para 1

Permanent Transfer/Disposal of Business Assets

Permanent transfer of business assets on which ITC has been availed is treated as supply. Example: When a company disposes off its machinery on which GST was claimed, GST applies on such disposal. The value is as per Rule 44A or market value.

Para 2

Supply Between Related Persons / Distinct Persons (in course of business)

Supplies between head office and branches registered in different states (distinct persons under Section 25), or between related persons (as defined in Section 2(84)) made in the course or furtherance of business, are treated as supply. Critical for inter-branch stock transfers and cross-charge of common services.

Para 3

Import of Services from Related Person / Overseas Establishment

Import of services by a taxable person in India from a related person or from any of its establishments outside India — treated as supply. GST payable under reverse charge by the Indian entity. Registration mandatory for the Indian recipient if not already registered.

Para 4

Supply of Goods by Agent on Behalf of Principal

When an agent (on behalf of the principal) supplies or receives goods — treated as a supply between principal and agent. Both agent and principal may be liable to register. Relevant for commission agents, del-credere agents, and stock-transfer-agents supplying goods for principals.

Schedule II resolves classification disputes by specifying whether a composite transaction is a supply of goods or a supply of services. This affects the applicable GST rate and the place of supply rules, directly impacting registration and levy of IGST vs CGST/SGST.

ParaTransactionTreated asPractical Example
1Transfer of title in goodsSupply of GoodsSale of mobile phones, furniture, raw materials
1Transfer of undivided share in goods (without transfer of title)Supply of ServicesJoint venture contribution of goods without ownership transfer
2Transfer of goods without transfer of title — hire purchase, conditional saleSupply of GoodsHire-purchase of machinery; title transfers on final payment
3Transfer of business assets to another person (for consideration)Supply of GoodsSale of machinery, plant, stock to third party
4Renting of immovable propertySupply of ServicesCommercial property rentals — 18% GST applicable; registration required if rentals exceed threshold
5Construction of complex, building (for sale) — before OCSupply of ServicesUnder-construction flat sales; no GST after Occupancy Certificate
6Temporary transfer of IP rightsSupply of ServicesSoftware licensing, brand licensing, franchise agreements
7Agreeing to refrain from an act / tolerating an actSupply of ServicesNon-compete agreements, penalty for early termination received as compensation
8Works contract — construction of immovable propertySupply of ServicesCivil construction contracts; 12% or 18% GST as applicable

Schedule III lists activities that are completely outside the scope of GST — these do not constitute supply, and accordingly are excluded from aggregate turnover computation for registration threshold purposes.

Para 1

Services by Employee to Employer in Course of Employment

Salary earned by an employee is not a supply of services by the employee. Employer-employee relationship in course of employment is outside GST. However, services provided by director to company (other than those covered under RCM) may be taxable if director is not an employee.

Para 2

Services by Courts, Tribunals, and Constitutional Bodies

Services provided by a court or tribunal established under any law, any Constitutional body (Election Commission, Comptroller & Auditor General, UPSC, etc.) are outside the scope of supply and hence outside GST registration requirements for such activities.

Para 3

Functions of MPs, MLAs, Members of Municipalities, Panchayats

Functions performed by Members of Parliament, State Legislatures, Panchayats, Municipalities, and other local authorities in that capacity — not a supply. Allowances and salaries received by them are outside GST.

Para 4

Funeral, Burial, Crematorium, Mortuary Services

Services by way of funeral, burial, crematorium or mortuary — excluded from supply. No GST liability. These activities are excluded from aggregate turnover and do not trigger registration obligations even if carried out on a large scale.

Para 5

Sale of Land and Sale of Complete Buildings

Sale of land — outside GST scope (stamp duty applicable). Sale of completed building after Occupancy Certificate — outside GST. Only under-construction properties (before OC) attract GST as services under Schedule II, Para 5. Important for determining developer registration obligations.

Para 6

Actionable Claims (Other Than Lottery, Betting, Gambling)

Transfer of actionable claims (such as assignment of receivables, rights under contracts) — generally outside GST. Exception: Lottery, betting, gambling, and online gaming (since Budget 2023 amendment) are specifically included in Schedule III as taxable. W.e.f. 01.10.2023: All forms of online gaming (regardless of skill/chance) attract 28% GST on full face value.

Amendment of Registration — Section 28 & Rule 19

Registered persons must notify the proper officer of any change in registration details. Amendments are of two types — core field amendments (requiring officer approval) and non-core field amendments (auto-approved).

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Core Field Amendments Rule 19(1)

Require officer approval within 15 days:
• Legal name of business
• Address of principal / additional place of business
• Addition/deletion/retirement of partners, directors, karta, managing committee members, trustee, board of trustees
• Change in constitution of business (proprietorship to partnership, etc.)

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Non-Core Field Amendments Rule 19(2)

Auto-approved within 15 days:
• Bank account details
• HSN codes for goods/services
• Authorized signatories
• Mobile number / email address
• Addition of goods and services supplied
• Changes in personal details not affecting constitution

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Time Limit for Amendment

Application for amendment must be filed in Form GST REG-14 within 15 days from the date of such change. For core field amendments, the proper officer has 15 working days to approve (Form GST REG-15) or raise objection (Form GST REG-03).

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PAN Change — Re-registration Required

Change in PAN of the registered person is not permissible through amendment. A new PAN requires fresh registration in Form GST REG-01. Old registration must be surrendered/cancelled separately. This commonly arises in conversion from proprietorship (individual PAN) to company (company PAN).

Cancellation & Revocation — Sections 29 & 30

Registration can be cancelled voluntarily by the taxpayer or suo-motu by the proper officer. Revocation of officer-initiated cancellation is available within 30 days under Section 30.

Grounds for Cancellation

Sec 29(1)

Voluntary Cancellation (Applicant-Initiated)

A registered person may apply in Form GST REG-16 for cancellation if: (a) business is discontinued/closed; (b) transferred, amalgamated, merged, demerged, or otherwise disposed of; (c) change in constitution of business; (d) turnover below prescribed threshold. Effective date: Future date as specified in application.

Sec 29(2)(a)

Suo-Motu Cancellation — Non-Filing of Returns

If a registered person has not filed returns for 6 consecutive months (for regular taxpayers) or 3 consecutive quarters (for composition taxpayers) — the proper officer may cancel registration after issuing SCN in Form GST REG-17 and granting opportunity of hearing.

Sec 29(2)(b)

Voluntary Registration Not Commenced Within 6 Months

A person who obtained voluntary registration but has not commenced business within 6 months from the effective date of registration — officer may cancel after SCN and hearing in Form GST REG-17.

Sec 29(2)(c) to (e)

Fraud / Misrepresentation / Suppression / Contravention

Registration obtained by means of fraud, willful misstatement, or suppression of facts. Or, where the registered person contravenes prescribed provisions. Includes fake invoicing, fraudulent ITC claim, business conducted from non-existent premises. Cancellation effective retrospectively from date of fraud.

Cancellation Process & ITC Implications

StepActionFormTimeline
1Application for cancellation (voluntary)GST REG-16Any time
2Show Cause Notice by officer (suo-motu)GST REG-17As applicable
3Reply to SCN by registrantGST REG-18Within 7 working days of REG-17
4Order of cancellationGST REG-19Within 30 days of REG-16/REG-18
5Final Return (GSTR-10) — mandatoryGSTR-10Within 3 months of cancellation order / effective date, whichever is later
6ITC reversal in GSTR-10GSTR-10Must reverse ITC on closing stock + capital goods (Rule 44)
💰 ITC Reversal on Cancellation (Rule 44): On cancellation, the registered person must pay an amount equal to the credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods — or the output tax payable on such goods, whichever is higher. Reversal must be done in GSTR-10 (Final Return). Non-filing of GSTR-10 attracts notice and late fee of ₹200/day up to ₹10,000 under Section 45.

Revocation of Cancellation — Section 30 Rule 23

Where registration is cancelled by the proper officer on his own motion (Section 29(2)), the registered person may apply for revocation in Form GST REG-21 within 30 days from the date of service of cancellation order. The officer must adjudicate within 30 days. If application is rejected, officer issues Form GST REG-05. Condition: All pending returns must be filed and taxes, interest, penalty paid before revocation can be granted.

Extended timeline (Amnesty 2023): Notification 03/2023-CT extended the period for filing revocation applications where cancellation orders were passed up to 31.12.2022 — extended deadline was 30.06.2023. Watch for any fresh amnesty notifications.

Penalties & Offences Related to Registration

Failure to register, registration through fraud, and non-compliance carry significant monetary penalties and potential prosecution under Sections 122, 125, and 132 of the CGST Act.

= Tax Evaded
Failure to Register — Section 122(1)(xi)
Penalty equal to the tax not paid or the amount of tax evaded, subject to minimum of ₹10,000. If supply made without GST registration (and without issuing invoice), penalty = 100% of tax evaded or ₹10,000 — whichever is higher.
₹25,000
General Penalty — Section 125
For non-compliance not separately covered by other penal provisions — general penalty up to ₹25,000. Applicable for failure to display GSTIN at place of business, failure to file final return (GSTR-10), etc.
₹200/Day
Late Fee — GSTR-10 Non-Filing
Final Return (GSTR-10) after cancellation: Late fee of ₹200 per day (₹100 CGST + ₹100 SGST) subject to maximum of ₹10,000. Must be paid before revocation application is processed.
100%
Fraudulent Registration — Section 122(1)
Obtaining registration by fraud, suppression, or misrepresentation: Penalty equal to 100% of tax evaded or ₹10,000, whichever is higher. Additionally, registration may be cancelled with retrospective effect and prosecution under Section 132 initiated.
Prosecution
Wilful Non-Registration — Section 132
Wilful failure to obtain registration where required: imprisonment up to 1 year + fine if tax evaded is ≥₹1 crore but less than ₹2 crore; up to 3 years if ₹2–5 crore; up to 5 years if above ₹5 crore. Non-cognizable and bailable offence.
18% p.a.
Interest on Delayed Registration
Tax liability from the date the obligation to register arose (not from the date of actual registration) carries interest at 18% per annum under Section 50. This creates a substantial liability for those who register late after exceeding the threshold.

Key CBIC Notifications — GST Registration

All Central Tax (CT) notifications issued under Section 148 / Section 23 / Section 9(3) of CGST Act that directly affect registration obligations, thresholds, exemptions, and procedures.

Threshold & Exemption Notifications

10/2019-CT

Enhancement of Registration Threshold for Goods to ₹40 Lakh

Enhanced the threshold turnover limit from ₹20 lakh to ₹40 lakh for exclusively goods suppliers in most states under Section 22(1). States were given the option to opt for ₹20L. Effective from 01.04.2019. Also notified ₹20L threshold for special category states for goods.

Date: 07.03.2019 | Effective: 01.04.2019

View Official Notification ↗
02/2019-CT

Threshold for Service Providers in Special Category States — ₹10 Lakh

Notified ₹10 lakh as the threshold for service providers in specified special category states (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, Himachal Pradesh, J&K) with effect from 01.04.2019.

Date: 07.03.2019 | Effective: 01.04.2019

65/2017-CT

Exemption from Registration — Pure Services to Government (Below Threshold)

Suppliers of services to Central Government, State Governments, UTs, or local authorities through intra-state transactions with aggregate turnover below ₹20 lakh (₹10 lakh for special category states) are exempted from mandatory registration under Section 23(2).

Date: 15.11.2017

10/2017-IT

Exemption for Inter-State Goods Suppliers — Notified Goods (Handicrafts, Handloom)

Persons making inter-state supplies of notified goods (handloom items, handicrafts, Khadi, silk, zari) are exempt from the mandatory registration requirement under Section 24(i) for inter-state supply — provided their aggregate turnover is below the applicable threshold. Such persons still register under composition or regular scheme if they breach the threshold.

Date: 13.10.2017 | Amended by Notification 03/2018-IT

CBIC Portal ↗

Process & Compliance Notifications

38/2020-CT

Aadhaar Authentication Made Mandatory for Registration

Made Aadhaar authentication mandatory for all new GST registration applications w.e.f. 21.08.2020. Applicants who complete Aadhaar authentication get their applications processed within 3 working days. Non-authentication leads to physical verification. Persons not having Aadhaar must use alternative documents (List A of Notification).

Date: 05.05.2020 | Effective: 21.08.2020

94/2020-CT

Bank Account Details — Rule 10A Amendment

Made furnishing of bank account details mandatory within 45 days of GSTIN grant or before filing GSTR-3B for the first tax period, whichever is earlier. Non-submission results in Form GST REG-31 notice. Registration may be suspended if bank details not submitted within the extended period.

Date: 22.12.2020

16/2022-CT

Registration Deemed Granted in 7 Days (Aadhaar Authenticated)

Amended Rule 9 to provide that in case of Aadhaar-authenticated applications where no Show Cause Notice or order is issued by the proper officer within 7 working days of application date, registration shall be deemed to have been granted. This provides certainty to genuine applicants.

Date: 13.09.2022

26/2022-CT

Insertion of Rule 8(4A) — Aadhaar Authentication Timeline

Inserted Rule 8(4A) requiring that all specified persons complete Aadhaar authentication within 15 days of the ARN generation date. Failure to complete authentication within 15 days results in the application being treated as if Aadhaar authentication was not performed — longer processing timeline (30 days) and physical verification applies.

Date: 26.12.2022

03/2023-CT

Amnesty Scheme — Revocation of Cancelled Registrations

Extended the time limit for filing revocation applications (under Section 30) for all registered persons whose registrations were cancelled by the proper officer on or before 31.12.2022. Such persons could file revocation application up to 30.06.2023. All returns from the registration date to cancellation date must be filed, and taxes/interest/penalty paid, as precondition.

Date: 31.03.2023 | Deadline: 30.06.2023

56/2023-CT

Biometric Aadhaar Authentication for High-Risk Applicants

Extended biometric-based Aadhaar authentication (in addition to OTP-based) to high-risk applicants identified by the risk-based system. Such applicants must visit designated GST Suvidha Kendras (GSKs) for biometric verification before registration is processed. Initially rolled out in Gujarat, Maharashtra, and other states.

Date: 27.12.2023

07/2024-CT

ISD Mandatory — Registration Amendment for Budget 2024

Consequent to Finance Act 2024 making ISD mechanism mandatory for distributing ITC of common services to distinct persons, this notification amended Rules 39, 54, and REG forms to align with the mandatory ISD requirement effective 01.04.2025. Existing cross-charge arrangements for services now being transitioned to ISD route.

Date: 12.03.2024 | Effective: 01.04.2025

09/2025-CT

Suspension of Registration — Rule 21A Amendment

Amended Rule 21A to provide that registration of a person shall be suspended where system-based comparison of data (GSTR-1/3B/2A mismatches, ITC reversals, aggregate turnover discrepancies) identifies significant anomalies exceeding prescribed limits. Upon suspension, person cannot make taxable supply, issue invoices, or claim ITC. Must file reply within 30 days in Form GST REG-31.

Date: 27.02.2025

CBIC Portal ↗

Composition Scheme Notifications

14/2019-CT (Rate)

Notified Goods Ineligible for Composition Scheme

Manufacturers of ice cream and other edible ice, whether or not containing cocoa; pan masala; tobacco and manufactured tobacco substitutes; fly ash bricks or fly ash aggregate; bricks of fossil meals or similar siliceous earths — are ineligible for composition scheme under Section 10(2)(e). These manufacturers must register under the regular scheme.

Date: 07.03.2019

02/2019-CT (Rate)

Composition Scheme for Service Providers — 6% Rate

Notified the composition scheme for service providers (and mixed suppliers with goods ≤10% of turnover) at a flat rate of 6% (3% CGST + 3% SGST/UTGST) on aggregate turnover not exceeding ₹50 lakh. These suppliers file CMP-08 quarterly and GSTR-4 annually under Rule 62.

Date: 07.03.2019 | Effective: 01.04.2019

Reverse Charge — Mandatory Registration Triggers

13/2017-CT (Rate)

Services under Section 9(3) — Reverse Charge (Notified Services)

Any recipient of the following services must register under GST (as recipient under RCM) regardless of turnover: Legal services by advocate to business entity; services by director to company; sponsorship services; services by government or local authority (except specified); import of services; GTA services to registered persons; insurance agent services; recovery agent services; transportation by vessel/aircraft from outside India. Recipients must pay IGST under RCM and register mandatorily under Section 24(iii).

Date: 28.06.2017 | Multiple amendments upto 2025

View Notification ↗
7/2019-IT

OIDAR — Compulsory Registration for Foreign Suppliers

All foreign persons supplying OIDAR services (cloud computing, digital downloads, e-learning, online advertising, online gaming, data services) to non-taxable online recipients (NTORs) in India must compulsorily register under IGST Act. Simplified registration via Form GST REG-10 — no PAN required. IGST payable on all supplies to Indian NTORs. Intermediaries or their India representatives also liable.

Date: 29.03.2019

GST Registration — Data & Analytics

Statistical overview of GST registrations, composition taxpayers, cancellations, and registration growth trends across India.

GSTIN Registrations Growth (FY18–FY25)

Active registered taxpayers in lakh — Year-wise

Registration Type Breakdown

Composition vs Regular vs Other category taxpayers (FY25)

Registration by Business Category

Distribution of registrations by constitution of taxpayer

Cancellation vs New Registrations

Monthly trend — new registrations vs cancellations (FY24-25)

Registration Compliance Checklist

Use this checklist to ensure full compliance with GST registration requirements for a new or existing business.

✅ Pre-Registration

  • Calculate aggregate turnover for preceding FY across all supplies and states under same PAN — compare with applicable threshold limit for your state and category
  • Check if any mandatory registration trigger under Section 24 applies — inter-state supply, RCM liability, e-commerce, CTP/NRTP status
  • Determine correct registration category: Regular, Composition, ISD, TDS deductor, TCS collector, CTP, NRTP, or OIDAR
  • Collect all required documents: PAN, Aadhaar, constitution proof, address proof for all business premises, bank account details, authorizations, photographs
  • Check if Aadhaar authentication is possible for all specified persons — arrange OTP-linked mobile numbers linked to Aadhaar
  • Prepare HSN/SAC code list for all goods and services supplied — required in Part B of REG-01

📝 During Registration Process

  • File Part A of GST REG-01 (PAN, mobile, email) — note TRN for Part B completion within 15 days
  • Complete Aadhaar authentication for all specified persons within 15 days of ARN to qualify for 7-day processing — check authentication status on GST portal
  • Complete Part B with accurate details — business name as per PAN, nature of business, principal place with correct proof, all partners/directors, bank account
  • For additional places of business — add each location with complete address and address proof document
  • Sign and submit with valid DSC (mandatory for companies/LLPs) or EVC (OTP-based for others)
  • Save ARN confirmation and track application status at gst.gov.in — respond to any REG-03 notice within 7 working days

🏢 Post-Registration

  • Download GST Registration Certificate (Form GST REG-06) from GST portal and display GSTIN prominently at principal and all additional places of business
  • Submit bank account details in the GST portal within 45 days of GSTIN grant or before filing first GSTR-3B — whichever is earlier (Rule 10A)
  • Understand effective date of registration — GST applies from this date; issue tax invoices only from effective date onwards; liability arises from that date
  • Set up GST return filing schedule: GSTR-1 (11th of next month / quarterly), GSTR-3B (20th of next month / quarterly), GSTR-9 (annual — 31 December)
  • Configure accounting / ERP software with GSTIN, HSN/SAC codes, applicable tax rates, and multi-state settings if applicable
  • Apply for IEC (Import Export Code) if planning import/export activities — separately required from DGFT portal
  • For composition taxpayers: File CMP-02 to formally opt in; ensure no inter-state supply is made and no ITC is claimed on purchases

⚠️ Ongoing Compliance

  • Monitor aggregate turnover monthly — if approaching threshold, prepare for registration before crossing the limit
  • File amendment application (REG-14) within 15 days for any change in core registration details — legal name, address, partners/directors
  • Renew CTP registration (REG-11) before expiry — registration valid for 90 days, extendable by another 90 days
  • Check GST portal notifications monthly for any system-generated suspension notice (REG-31) — respond within 30 days to avoid cancellation
  • If planning to cancel registration — file GSTR-10 (Final Return) within 3 months of effective cancellation date and reverse ITC on closing stock (Rule 44)

Frequently Asked Questions

Answers to the most common questions on GST registration from our users and tax practitioners.

No. Technically, GST liability arises from the date the aggregate turnover crosses the threshold limit, or from the date of the event triggering Section 24 mandatory registration — not from the date of actual registration. The effective date of registration will be the date of liability, and taxes, interest, and penalties can be levied retrospectively. Under Section 25(10), if the officer fails to act within prescribed time, registration is deemed granted from the date of application. However, it is advisable to apply for registration as soon as you approach the threshold.
A freelancer or consultant providing services within the same state with aggregate turnover below ₹20 lakh (₹10 lakh in special category states) is not required to register. However, if the freelancer: (a) provides services to clients in other states (inter-state — though Section 24(i) exemption was relaxed for services), (b) is liable to pay under RCM (e.g., import of online services), or (c) crosses the threshold — registration becomes mandatory. Voluntary registration is beneficial if the freelancer's clients are GST-registered businesses who want to claim ITC on professional fees.
There is no specific "late registration fee" under GST. However, the consequences are severe: (a) All tax on supplies made from the date the obligation arose becomes payable — this is treated as tax collected but not deposited, attracting Section 122 penalty of 100% of such tax or ₹10,000, whichever is higher; (b) Interest at 18% per annum on the unpaid tax liability from the due date; (c) If inter-state supplies were made without registration, IGST is also due; (d) The officer may conduct assessment under Section 63 (unregistered persons) and levy best judgment assessment.
No. Persons supplying goods through e-commerce operators (Amazon, Flipkart, Meesho, etc.) must mandatorily register under Section 24(ix) regardless of turnover. This is one of the most common sources of confusion — many small sellers believe the ₹40L threshold applies to them, but it does not. The e-commerce operator (Amazon, Flipkart) is also separately required to register and collect TCS @ 1% on net value of taxable supplies made through it. Exception: For services (not goods) notified under Section 9(5) — the ECO pays tax, but the individual service provider must still register if above threshold.
One PAN can have multiple GSTINs: (a) One GSTIN per state/UT where the person has a business establishment — mandatory if business is in multiple states; (b) Within the same state, a person can apply for additional registration for each distinct business vertical under Rule 11 (provided each vertical maintains separate accounts); (c) A person can also take ISD registration separately, TDS registration separately, and TCS registration separately — each is a distinct GSTIN. There is no limit on the number of GSTINs per PAN, though each requires separate returns, payment, and compliance.
GSTR-10 (Final Return) must be filed within 3 months of the effective date of cancellation or the date of cancellation order — whichever is later. Non-filing consequences: (a) Late fee of ₹200 per day (₹100 CGST + ₹100 SGST) subject to maximum ₹10,000; (b) A notice will be issued in GSTR-10 format for failure to file; (c) Any revocation application under Section 30 cannot be processed until all pending returns including GSTR-10 are filed and taxes, interest, and late fees are paid; (d) ITC reversal on closing stock and capital goods (Rule 44) must be reported in GSTR-10 — failure may result in assessment by the department.
No. A composition taxpayer under Section 10 cannot make inter-state outward supplies of goods or services. This is an absolute prohibition under Section 10(2)(a). If a composition taxpayer receives an order from a customer in another state and supplies from their state, they must: (a) immediately exit the composition scheme by filing Form GST CMP-04; (b) register for regular GST; and (c) pay IGST on the inter-state supply. Composition taxpayers can, however, receive inter-state goods (inward supply) — they pay RCM on specified inward supplies but cannot make outward inter-state supplies.
Yes, if a non-resident foreign entity supplies OIDAR (Online Information and Database Access and Retrieval) services to Non-Taxable Online Recipients (NTORs) in India — defined as non-registered persons receiving services through internet for personal use — it must compulsorily register under the IGST Act. Registration via Form GST REG-10 (simplified, no Indian PAN required). IGST at applicable rate is payable on all supplies to Indian NTORs. If services are supplied to GST-registered businesses (B2B), the Indian recipient pays under RCM (Section 5(3) of IGST Act) and the foreign supplier need not register for those B2B supplies specifically.