GST Registration Online 2026: Documents, Threshold, Fees, Process and Penalty

Goods threshold

₹40 lakh

Aggregate turnover, exclusive suppliers of goods

Services threshold

₹20 lakh

₹10 lakh in special category states

Approval time

7 working days

With Aadhaar authentication and no risk flag

Composition limit

₹1.5 crore

₹50 lakh for service providers under 10(2A)

Who must register: the turnover thresholds

Section 22 of the CGST Act requires registration once aggregate turnover in a financial year crosses the threshold. Aggregate turnover is computed on a PAN basis across all states and includes taxable, exempt and export supplies, but excludes GST itself and inward supplies taxed under reverse charge.

The ₹40 lakh goods limit does not apply in a handful of states that opted to keep ₹20 lakh, including Uttarakhand, Telangana, Puducherry, Sikkim, Arunachal Pradesh and Meghalaya. A business in Haryana, Punjab or Chandigarh selling only goods gets the full ₹40 lakh limit. Once the threshold is crossed you have 30 days to apply.

Cases where registration is mandatory from day one

Section 24 overrides the threshold for certain categories. If you fall into any of these, turnover does not matter and you must register before making the first supply.

• Inter-state supply of goods. Inter-state supply of services is exempt from compulsory registration up to ₹20 lakh.
• Selling goods through an e-commerce operator that collects TCS, such as Amazon or Flipkart. Since 1 October 2023, intra-state sellers of goods below the threshold can instead obtain an enrolment number and sell without full registration, provided they do not sell across state lines.
• Persons liable to pay tax under reverse charge, for example a business receiving legal services from an advocate or goods transport services.
• Casual taxable persons and non-resident taxable persons, such as an exhibitor at a trade fair in another state.
• Agents supplying on behalf of a principal, input service distributors, and persons required to deduct TDS or collect TCS under GST.
• Suppliers of online information and database services (OIDAR) from outside India to unregistered persons in India.

Documents required by entity type

The portal rejects a surprising number of applications for document problems: an electricity bill older than two months, a rent agreement without an NOC, or a photograph in the wrong format. Assemble the set below before you start Part B of the application.

Bank account details can be furnished after the GSTIN is allotted, but rule 10A requires them within 30 days of registration or before filing the first GSTR-1, whichever is earlier. Missing this suspends the registration.

Step-by-step process on the GST portal

1. Go to gst.gov.in, choose Services, Registration, New Registration. Select the taxpayer type, state and district, enter the legal name as per PAN, PAN, mobile and email. Verify both OTPs to receive a Temporary Reference Number (TRN).
2. Log in with the TRN and complete Part B, which has ten tabs: business details, promoters or partners, authorised signatory, authorised representative, principal place of business, additional places, goods and services, state-specific information, Aadhaar authentication and verification.
3. Enter at least one HSN code for goods or SAC code for services. Pick the codes that match your actual supplies, since they decide the rate schedule shown on your returns.
4. Choose whether to opt for the composition scheme on the business details tab. This choice cannot be changed mid-year once the first return is filed.
5. Complete Aadhaar authentication for the promoters and authorised signatory through the OTP link sent to the Aadhaar-linked mobile. Applicants flagged as high risk are directed to a GST Suvidha Kendra for biometric authentication.
6. Submit with DSC (compulsory for companies and LLPs) or EVC. You receive an Application Reference Number (ARN) by email and SMS.
7. Track the ARN. If the officer raises a query in form REG-03, reply in REG-04 within 7 working days. On approval, download the registration certificate in REG-06 from the portal.

Timelines: 7 working days, or up to 30

Rule 9 gives the officer 7 working days from the ARN date to approve or query an application where Aadhaar authentication is completed and the applicant is not flagged by the risk system. If no action is taken in that time, registration is deemed approved.

Where Aadhaar authentication is not done, or the applicant is flagged, the officer may order physical verification of the premises and the time limit extends to 30 days. A simplified track for low-risk applicants with expected monthly output tax up to ₹2.5 lakh, approved within 3 working days, was introduced from November 2025; check the current status on the portal when you apply.

The effective date of registration is the date you became liable, if you applied within 30 days of that date. Apply later and the effective date is the date of grant, which means you cannot collect GST from customers or claim credit for the gap period. Stock and inputs held on the effective date qualify for credit through form ITC-01 filed within 30 days.

Composition scheme: lower tax, less paperwork, real limits

Section 10 lets small businesses with aggregate turnover up to ₹1.5 crore (₹75 lakh in special category states) pay tax at a flat rate on turnover instead of charging GST on each invoice. Service providers can use the parallel scheme under section 10(2A) up to ₹50 lakh. You file CMP-08 quarterly by the 18th and GSTR-4 annually by 30 June.

• You cannot collect GST from customers or claim input tax credit. The tax is a cost to you.
• No inter-state outward supplies. Intra-state sales through e-commerce platforms are allowed for goods since October 2023.
• Every invoice must say "composition taxable person, not eligible to collect tax on supplies".
• Manufacturers of ice cream, pan masala and tobacco cannot opt in.
• The scheme suits B2C shops and restaurants with low input credit. It rarely suits B2B businesses whose customers want credit.

Voluntary registration: pros and cons

Section 25(3) allows anyone to register voluntarily. Once registered, every provision of the Act applies as if you had crossed the threshold, so the decision should be made on the basis of your customers, not your turnover.

Penalty for not registering

Operating above the threshold without a GSTIN means the department can demand the tax you should have collected, with interest at 18% per annum, plus penalty. Under section 73, for a lapse without fraud, the penalty is 10% of the tax due or ₹10,000, whichever is higher. Where the failure is treated as wilful evasion under section 74, the penalty is 100% of the tax. Section 122(1)(xi) separately prescribes ₹10,000 or the tax evaded, whichever is higher, for failing to register when liable.

The tax cannot be recovered from customers after the event, so the entire amount comes out of your margin. Applying within 30 days of crossing the threshold avoids all of it.

What to do next

Add up your receipts for the current year across all states and all activities. If you are near ₹20 lakh for services or ₹40 lakh for goods, or you sell inter-state or on a marketplace, collect the documents in the table above and apply now. If you are below the threshold, decide voluntary registration based on whether your customers are businesses. An expert-assisted application typically clears in 3 to 7 working days without a query.