GST Registration in India: Who Needs It and Why It’s Mandatory

GST Registration in India: Who Needs It and Why It’s Mandatory

The Goods and Services Tax (GST) regime, rolled out in India on July 1, 2017, unified indirect taxes across the country into a single framework. One of the most critical aspects of compliance under GST is registration—which is mandatory for several categories of individuals and businesses.

Why GST Registration is Important

GST registration:

• Provides a legal identity as a supplier of goods or services.
• Enables the collection of tax from customers.
• Allows businesses to claim input tax credits.
• Is mandatory for conducting business legally in many scenarios.

Who Must Register for GST?

As per the Central Board of Indirect Taxes and Customs (CBIC) and government notifications, GST registration is mandatory for the following individuals and entities:

Turnover-Based Thresholds

• Goods Suppliers: Turnover exceeds ₹40 lakh (₹20 lakh for special category states).
• Service Providers: Turnover exceeds ₹20 lakh (₹10 lakh for special category states)

Specific Cases Where GST Registration is Mandatory (Regardless of Turnover)

1. Casual Taxable Persons

Individuals occasionally undertaking business in a state where they don’t have a fixed place of business.

2. Non-resident Casual Taxable Persons

Non-resident Casual Taxable Persons

3. Persons Making Inter-State Taxable Supplies

Mandatory for anyone supplying goods or services from one state to another.

4. Agents of a Registered Taxpayer

Those acting on behalf of other registered persons must obtain GST registration.

5. E-Commerce Operators

Entities operating platforms like Amazon, Flipkart, or their own marketplaces.

6. Persons Selling Through E-Commerce Platforms

Sellers listing their goods or services on e-commerce platforms must register, irrespective of turnover.

7. TDS/TCS Deductors

Persons required to deduct tax at source under GST provisions.

8. Persons Operating in a Different State than Business Location.

Businesses with a presence or place of supply in a different state must register there too.

9. Import-Export Traders

GST registration is mandatory for those involved in import and export of goods or services.

10. Reverse Charge Mechanism (RCM

If liable to pay tax under reverse charge, registration is compulsory.

11. Businesses Registered Under Old Tax Laws

Entities registered under VAT, Excise, or Service Tax needed to migrate to GST.

12. Entities registered under VAT, Excise, or Service Tax needed to migrate to GST.

Individuals or firms running platforms that aggregate services (e.g., cab aggregators like Uber, Ola).

13. Input Service Distributors (ISD)

Entities distributing the credit of GST paid on input services to other branches.

14. OIDAR Service Providers

Overseas businesses providing Online Information and Database Access or Retrieval services in India to unregistered persons must register under GST.

🔍 Documents Required for GST Registration

• PAN Card of business/individual
• Aadhaar Card
• Business address proof (e.g., utility bill, rent agreement)
• Bank account proof (cancelled cheque or statement)
• Passport-size photographs
• Certificate of business incorporation (if applicable)

🛠 How to Register

The registration is fully online via the official GST Portal. The process involves submitting the application along with scanned documents, followed by ARN generation and verification.

🎯 Final Thoughts

GST registration is not just a compliance formality—it is a legal requirement for many business models. Whether you’re an e-commerce seller, an aggregator, or involved in cross-state transactions, being registered ensures you’re eligible for tax credits and remain compliant with the law.

Failing to register when required may lead to heavy penalties, interest, and potential cancellation of business licenses.