GST registration is mandatory past a turnover threshold — but thousands of businesses register before they must, because input credit and B2B credibility are worth more than the compliance cost. Here is how to know which side you are on.
When it is mandatory
- Turnover above ₹40 lakh for goods (₹20 lakh in special-category states).
- Turnover above ₹20 lakh for services (₹10 lakh in special-category states).
- Any interstate supply of goods, regardless of turnover.
- Selling through e-commerce platforms — Amazon, Flipkart, Swiggy — from rupee one.
- Import or export of goods or services.
When registering early pays
If your customers are businesses, they want your GST invoice — without it, many simply will not onboard you as a vendor. And every rupee of GST you pay on laptops, rent, software and services becomes input credit you can set off once registered. A services startup spending ₹5 lakh a year on GST-carrying costs recovers roughly ₹90,000 by registering early.
Registration is free. Not being able to invoice a corporate client is not.
The documents
- PAN and Aadhaar of proprietor / partners / directors.
- Business registration proof — incorporation certificate or partnership deed.
- Business address proof — electricity bill plus rent agreement or NOC.
- Bank account proof — cancelled cheque or statement.
- Photographs and, for companies, board authorisation.
The process, honestly
Filing the application takes a day once documents are ready. The department typically approves in 3–7 working days; Aadhaar authentication speeds it up. Expect a query if the address proof is imperfect — that is the single most common delay. Once the GSTIN arrives, your filing calendar starts immediately: GSTR-1 and GSTR-3B every month, even if the month is nil.
After registration — the part nobody warns you about
A GSTIN is a monthly commitment, not a certificate. Miss two filings and the portal blocks your e-way bills; miss six months and the registration gets cancelled — reviving it is far harder than maintaining it. Decide upfront who files every month: you, your accountant, or us.