When is GST registration mandatory?
GST registration isn't just about turnover. There are situations where registration is mandatory regardless of how much you earn.
Mandatory registration (no turnover threshold)
- E-commerce sellers — If you sell on Amazon, Flipkart, Meesho, Nykaa, Snapdeal, or any other marketplace, GST registration is compulsory under Section 24(ix) of the CGST Act. No turnover exemption.
- Inter-state suppliers — If you supply goods or services to customers in another state, GST registration is mandatory (Section 24(i)).
- Casual taxable persons — Anyone who occasionally supplies taxable goods in a state where they don't have a fixed place of business.
- Persons required to deduct TDS under GST — Notified government bodies, PSUs, etc.
Threshold-based registration
If none of the above mandatory triggers apply, registration depends on your annual aggregate turnover:
| State type | Goods suppliers | Service providers |
|---|---|---|
| Normal states | ₹40 lakh | ₹20 lakh |
| Special category states ★ | ₹20 lakh | ₹10 lakh |
★ Special category states: J&K, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura
What counts as "aggregate turnover"?
Aggregate turnover includes all taxable supplies + exempt supplies + exports — across all your businesses under the same PAN, nationwide. It excludes: CGST, SGST, IGST, cess, inward supplies on which you pay tax on reverse charge.
Penalty for not registering
If you cross the threshold and fail to register within 30 days, the penalty is:
- 10% of tax due (minimum ₹10,000)
- If deliberate evasion is proved: 100% of tax due (minimum ₹10,000)