Mandatory GST Registration Requirements and Procedures

For businesses operating in India, obtaining Goods and Services Tax (GST) registration is a legal obligation. The Central Goods and Services Tax (CGST) Act of 2017 sets forth specific annual turnover thresholds—₹40 lakhs for suppliers of goods and ₹20 lakhs for service providers—above which registration becomes mandatory. However, certain business types are required to register for GST regardless of their turnover figures.

Mandatory Registration Under Section 24 of the CGST Act

As per Section 24 of the CGST Act, 2017, specific individuals and businesses must obtain GST registration, irrespective of their annual turnover. These include:

• Individuals or entities supplying goods or services across state borders (e.g., a business in Maharashtra selling to a customer in Delhi).
• Casual Taxable Persons, defined as those who occasionally undertake transactions in a state where they lack a permanent business establishment (e.g., a Rajasthan-based firm participating in a Bengaluru trade fair must register as a casual taxable person in Bengaluru).
• Non-resident Taxable Persons engaged in taxable supplies within India (e.g., a foreign exhibitor selling products at an Indian exhibition).
• Businesses required to remit tax under the Reverse Charge Mechanism (RCM) (e.g., a business paying for legal services from advocates must obtain compulsory registration).
• Electronic Commerce Operators facilitating the online sale of goods and services (e.g., platforms like Amazon, Meesho, or Ola).
• Input Service Distributors (ISDs), such as a company's head office allocating the Input Tax Credit (ITC) for shared expenses among its branches or associated companies).
• Entities providing Online Information and Database Access or Retrieval (OIDAR) services from outside India to unregistered persons in India (e.g., a US-based cloud service provider catering to Indian clients).
• Any entity involved in providing online money gaming services from a location outside India to individuals within India.
• Entities obligated to deduct tax at source under Section 51 of the CGST Act (e.g., government bodies making payments to their suppliers).

Determining Compulsory GST Registration Eligibility

An individual, Hindu Undivided Family (HUF), partnership, or company must register under GST if their annual turnover in a financial year exceeds ₹40 lakhs for goods or ₹20 lakhs for services, as stipulated by Section 22 of the CGST Act, 2017. Additionally, as outlined previously, specific categories of entities are mandated to register for GST irrespective of their yearly turnover, according to Section 24 of the CGST Act, 2017.

Steps for GST Registration

To initiate GST registration, applicants should visit the official government portal, gst.gov.in. The registration path varies based on the applicant's category, such as a regular taxpayer, composition dealer, casual taxable person, or Input Service Distributor (ISD).

Upon submitting fundamental information like PAN, mobile number, and email ID, and after successful One-Time Password (OTP) verification, a Temporary Reference Number (TRN) is issued.

Form GST-REG-01 necessitates comprehensive business information, including:

• The principal place of business.
• The legal structure or constitution of the business.
• Personal particulars of the proprietor, partners, or directors.
• Bank account details.
• The Harmonized System of Nomenclature (HSN) code for the goods or services dealt with.

Once all required details are submitted and the application is verified using an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC) (mandatory for companies and LLPs), an Acknowledgement Reference Number (ARN) is sent to the taxpayer's registered mobile number and email address. The GST department typically takes 3 to 7 business days to process the application and issue the GST identification number. For a comprehensive guide, refer to the detailed process here.