GST registration sounds like a turnover question, and mostly it is — but a handful of activities require it from your very first rupee. Here is who must register in 2026, who can wait, and the new rules that make staying registered a little less forgiving.
The turnover thresholds
The basic rule: you must register once your aggregate annual turnover crosses ₹40 lakh for goods or ₹20 lakh for services. A set of special-category states apply lower limits — ₹20 lakh for goods and ₹10 lakh for services. The same thresholds apply whether you trade as a proprietorship, an LLP or a private limited company.
Who must register regardless of turnover
Several situations require registration even if you are well below the threshold. The common ones: making inter-state supplies of goods, selling through an e-commerce operator, being liable to pay tax under reverse charge, or acting as a casual or non-resident taxable person. If any of these apply, the turnover limit is irrelevant — you register before you start.
The registration process
Registration is done online on the GST portal. You will need the entity's PAN, proof of business address, bank account details and the promoters' KYC. With everything in order, registration is usually granted within about a week. One change worth flagging: unverified bank details can now trigger suspension, so complete and verify that step rather than leaving it for later.
The composition scheme, briefly
Smaller businesses can opt for the composition scheme, which trades a lower, flat rate of tax and simpler returns for the inability to claim input tax credit or make inter-state sales. It suits some retailers and small service providers; it is the wrong choice for anyone selling B2B who needs to pass on credit. It is worth a short conversation before opting in.
The short version
Register once you cross ₹40 lakh (goods) or ₹20 lakh (services) — or immediately if you sell inter-state or via e-commerce. Verify your bank details to avoid suspension. If you're near the line or unsure which scheme fits, see taxation services.
The mistake we see most often isn't registering late on turnover — it's an e-commerce or inter-state seller who didn't realise they had to register from day one.
Frequently asked questions
Registration is mandatory once turnover exceeds ₹40 lakh for suppliers of goods, or ₹20 lakh for service providers. Some special-category states apply lower thresholds of ₹20 lakh for goods and ₹10 lakh for services.
Not on turnover alone — service providers below ₹20 lakh (₹10 lakh in special-category states) are generally not required to register. But certain activities, such as inter-state supply or selling through e-commerce, require registration regardless of turnover.
With documents in order and bank details verified, registration is typically granted within about a week. Missing or unverified bank details can now lead to suspension, so complete that step promptly.