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GST registration is mandatory for businesses exceeding the turnover threshold under the GST Act, 2017. It ensures legal collection of tax, eligibility to claim input tax credit (ITC), and compliance with India’s unified indirect tax system.
Why GST Registration is Mandatory
GST was introduced under the GST Act, 2017 to unify indirect taxation in India. Businesses exceeding the prescribed turnover thresholds must register
₹40 lakhs for goods
₹20 lakhs for services
Lower limits for special category states
Without registration
Cannot legally collect GST from customers
Cannot claim Input Tax Credit (ITC)
Law Reference
Section 22, CGST Act, 2017 – Threshold for registration
Section 24, CGST Act, 2017 – Compulsory registration in certain cases (inter-state supply, e-commerce operators, etc.)
Types of GST Registration
Regular GST Registration – For businesses above turnover threshold
Composition Scheme – For small businesses (turnover up to ₹1.5 crore / ₹75 lakh in special states)
Casual Taxable Person Registration – For seasonal businesses
Non-Resident Taxable Person Registration – For foreign entities operating in India
Input Service Distributor (ISD) – For companies distributing ITC
Benefits of GST Registration & Compliance
Legal authority to collect GST from customers
Eligibility to claim Input Tax Credit (ITC)
Improved credibility with clients, banks, and government bodies
Easier participation in tenders and global trade
Avoidance of penalties for non-registration
Process of GST Registration & Filing
Data Collection & Verification – PAN, Aadhaar, business proof, address proof, bank details
Online Application Filing – Through the GSTN portal (www.gst.gov.in)
ARN Generation & Acknowledgement – Application Reference Number issued
Verification by GST Officer – Clarifications requested if needed
GSTIN Allotment – 15-digit unique GST Identification Number