Does your small business need GST registration?

When registration is required

In broad terms, a business must register for GST when its aggregate annual turnover crosses the threshold that applies to it. Commonly:

• For businesses supplying only goods, the threshold is generally ₹40 lakh in most states.
• For businesses supplying services, it is generally ₹20 lakh.
• Lower thresholds apply in certain special category states.

Some businesses must register regardless of turnover, for example those making certain inter-state supplies, or selling through e-commerce platforms that collect tax at source. Rules and thresholds can change, so confirm with a chartered accountant.

Voluntary registration

You can register even if you are below the threshold. Businesses often do this because larger business customers prefer GST-registered suppliers, and because registration lets you claim input tax credit on your purchases. The trade-off is regular return filing.

The composition scheme

Eligible small businesses with turnover up to the scheme limit can opt for the composition scheme, which allows paying tax at a lower, fixed rate on turnover with simpler, less frequent returns. Composition dealers generally cannot collect GST from customers or claim input tax credit, and not every type of business is eligible.

How to apply

1. Apply on the official GST portal, gst.gov.in, under Services → Registration.
2. Keep ready: PAN, Aadhaar, proof of business address, bank account details, photographs, and business constitution documents.
3. Complete Aadhaar authentication when asked.
4. Track your application; once approved you receive your GSTIN.

After registering

• Show your GSTIN on invoices and, if you like, on your website.
• File returns on time to avoid late fees.
• Keep purchase and sales records organised every month, not only at filing time.

This guide is general information, not tax advice. Thresholds and rules change; speak to a chartered accountant about your business.