GST

GST Registration Limits

Under GST law, Goods and Services Tax registration is mandatory for businesses with an annual turnover exceeding ₹40 lakhs (for sale of goods in normal category states) and ₹20 lakhs (for sale of goods in special category states). If your turnover crosses these limits, you must register as a regular taxable entity under GST.

The GST Council sets these thresholds and makes recommendations on GST rates, exemptions, and related tax policies. Below is a detailed breakdown of the current and earlier threshold limits:

Current GST Registration Limits (Effective from 1 April 2019)

Type of Supply	Threshold Limit	Applicable States
Sale of Goods	₹40 lakh	Normal Category States
Sale of Goods	₹20 lakh	Special Category States
Providing Services	₹20 lakh	Normal Category States
Providing Services	₹10 lakh	Special Category States

Summary:

• For goods → ₹40 lakh (normal states) / ₹20 lakh (special states)
• For services → ₹20 lakh (normal states) / ₹10 lakh (special states)

Old GST Registration Limits (Before 1 April 2019)

Type of Supply	Threshold Limit	Applicable States
Sale of Goods / Providing Services	₹20 lakh	Normal Category States
Sale of Goods / Providing Services	₹10 lakh	Special Category States

The threshold limit for GST registration is calculated on aggregate turnover, which includes:

• All taxable supplies
• Exempt supplies
• Exports of goods or services
• Inter-state supplies
• Businesses exceeding these limits must register for GST; otherwise, registration is optional.
• Timely GST registration ensures compliance with GST laws, allows claiming input tax credit, and avoids penalties.

Special Category States: The GST registration limit is lower in special category states:

• Assam
• Arunachal Pradesh
• Manipur
• Jammu & Kashmir
• Meghalaya
• Nagaland
• Mizoram
• Sikkim
• Tripura
• Uttarakhand

Voluntary GST Registration

Even if your turnover is below the threshold limit, you may voluntarily register under GST.

Benefits of Voluntary Registration

• Claim Input Tax Credit (ITC)
• Sell across India without restrictions
• Register on e-commerce platforms
• Improve business credibility
• Support future business growth

Voluntary GST registration is ideal for startups, MSMEs, and growing businesses.

Latest Update: Simplified GST Registration in 3 Days

In line with the government’s efforts to streamline compliance for small businesses, the Simplified GST Registration Scheme under Rule 14A of the CGST Rules, 2017 has been introduced. Effective from 1st November 2025, this fast-track, Aadhaar-authenticated registration process allows eligible businesses to obtain GST registration within just 3 working days. This scheme is specifically designed for small taxpayers with a monthly output tax liability not exceeding ₹2.5 lakh on B2B supplies, significantly reducing the time and effort required for registration.

This simplified process is available for service providers and B2B suppliers who meet the eligibility criteria, ensuring that businesses can quickly enter the GST ecosystem and focus on growth.

At Thrive Tax Solutions, we are fully equipped to assist you in navigating this new process, providing a seamless and efficient GST registration experience. Get your business GST-registered in just 3 days!

GST Registration Documents Required

Below, we have given the Online GST registration documents to use as a checklist. These are all important to proceed with the GST number apply online,

Business Type	Documents Required
Sole proprietor / Individual	• PAN card of the owner • Aadhar card of the owner • Photograph of the owner (in JPEG format, maximum size 100 KB) • Bank account details* • Address proof**
LLP and Partnership Firms	• PAN card of all partners (including managing partner and authorized signatory) • Copy of partnership deed • Photograph of all partners and authorised signatories (in JPEG format, maximum size 100 KB) • Address proof of partners (Passport, driving license, Voters identity card, Aadhar card etc.) • Aadhar card of authorised signatory • Proof of appointment of authorized signatory • In the case of LLP, registration certificate / Board resolution of LLP • Bank account details* • Address proof of principal place of business
HUF	• PAN card of HUF • PAN card and Aadhar card of Karta • Photograph of the owner (in JPEG format, maximum size 100 KB) • Bank account details • Address proof of principal place of business
Company (Public and Private) (Indian and foreign)	• PAN card of the Company • Certificate of incorporation given by Ministry of Corporate Affairs • Memorandum of Association / Articles of Association • PAN card and Aadhar card of authorized signatory. The authorised signatory must be an Indian, even in case of foreign companies/branch registration • PAN card and address proof of all directors of the Company • Photograph of all directors and authorised signatory (in JPEG format, maximum size 100 KB) • Board resolution appointing authorised signatory / Any other proof of appointment of authorised signatory (in JPEG format / PDF format, maximum size 100 KB) • Bank account details • Address proof of principal place of business

Benefits of GST Registration

• Legal Business Identity – Official recognition under GST law
• Input Tax Credit – Reduce tax by claiming GST paid on purchases
• Easy Compliance – Single online system for returns and payments
• Lower Tax Option – Composition scheme for small businesses
• Higher Threshold Limit – Registration required only after prescribed turnover
• No Tax-on-Tax – Eliminates cascading effect of taxes

Thrive Tax Solutions ensures quick and compliant GST registration so your business can operate smoothly and grow with confidence.

Penalties & Consequences for GST Non-Compliance

Failure to comply with GST provisions can lead to penalties, interest, and legal issues. Timely registration and return filing are essential to avoid financial loss.

Penalties for Late Filing or Non-Payment

• Late Return Filing: Late fee is charged for delayed GST returns
• Interest on Tax Due: Interest is levied on unpaid GST liability
• Short Payment of Tax: Penalty of 10% of tax due (minimum ₹10,000)
• Maximum Penalty: Up to 10% of tax payable, along with interest

Consequences of Not Registering for GST

• Penalty of ₹10,000 or tax evaded, whichever is higher
• In serious cases, penalty may go up to ₹2 lakh
• Loss of right to collect GST and claim Input Tax Credit (ITC)
• Possible suspension or cancellation of GST registration

Common Mistakes to Avoid in GST Compliance

• Submitting incomplete or incorrect documents
• Errors in invoices (wrong GSTIN, tax rate, or values)
• Mismatch between GSTR-2A and GSTR-3B
• Dealing with suppliers having invalid GSTINs
• Missing return filing due dates
• Incorrect use of the Composition Scheme
• Ignoring GST notices or department communications

Businesses That Must Register Under GST

GST registration is mandatory for many sectors, including:

• Professionals: CA, tax consultants, insurance & financial advisors
• IT & Digital Services: Software firms, SaaS, web & marketing agencies
• E-commerce & Online Sellers
• Travel & Tourism: Travel agents, tour operators, hotels
• Logistics & Transport: Couriers, freight, transport contractors
• HR & Recruitment Services
• Legal & Consultancy Services
• Event Management & Entertainment
• Healthcare Tech, Fitness & Wellness Services
• Manufacturers, Traders & Self-Employed Businesses

Latest GST Rate Updates (Effective from 22 September 2025)

Following the 56th GST Council Meeting, GST rates have been reduced on several essential goods and services to ease the tax burden.

Key GST Rate Changes

• Daily-use items (soaps, packaged food, bicycles): 5% GST
• Milk products & Indian breads: Nil GST
• Small cars, two-wheelers & buses: 18% GST
• TVs & home appliances: 18% GST
• Automotive parts: Uniform 18% GST
• Life-saving medicines & cancer drugs: Nil GST
• Other essential medicines: 5% GST
• Life & health insurance policies: GST Exempted