Business compliance

GST Registration: Complete Guide for New Businesses

Updated 31 Oct 202615 min read

Quick answer

You must register for GST once your annual turnover crosses ₹40 lakh if you sell only goods, or ₹20 lakh if you sell services. A few states have lower limits. Some businesses must register from day one, such as anyone selling goods to another state. Registration is free on gst.gov.in and usually takes 3 to 7 working days.

On this page

GST registration at a glance
Do you need GST registration?
Documents you need
How to register on the GST portal
After you apply: how long approval takes
After registration: what you must do
Mistakes that delay or cancel a registration
Penalty for not registering
How GST registration helps you get a business loan
Frequently asked questions
Related guides

Kredway is a private loan advisor, not a government website. GST registration on the official portal, gst.gov.in, is free.

GST registration at a glance

As of 31 Oct 2026.

Who must register: Businesses with turnover above ₹40 lakh (goods only) or ₹20 lakh (services), plus some businesses from day one
Lower limits: ₹20 lakh for goods in a few states; ₹10 lakh for services in Manipur, Mizoram, Nagaland and Tripura
Government fee: None. Registration on gst.gov.in is free
When to apply: Within 30 days of becoming liable to register
Approval time: 3 working days on the simplified route, about 7 working days with Aadhaar authentication, up to 30 days if a physical check is needed
What you get: A 15-character GST number (GSTIN) and a registration certificate in Form REG-06
Main documents: PAN, Aadhaar, photograph, proof of your business address. Bank details can be added within 30 days of approval
Validity: A regular registration doesn't expire. It stays active until it's cancelled

Sources: CBIC on registration, CBIC Circular 257/03/2026-GST, Notification 18/2025-Central Tax.

Do you need GST registration?

You need it in one of two situations: your turnover crosses the limit for your state, or your business falls into a category that must register from day one. Below the limit, registering is your choice.

Turnover limits

What you sell	Limit in most states	Lower limits
Goods only, within your state	₹40 lakh a year	₹20 lakh in Telangana, Puducherry and some north-eastern and hill states
Services, or goods and services	₹20 lakh a year	₹10 lakh in Manipur, Mizoram, Nagaland and Tripura

The limit applies to your aggregate turnover: all taxable sales, exempt sales, exports and inter-state supplies under the same PAN, added up across India, not counting the GST itself (ClearTax, Juris Hour). State limits have changed before. If you're in a north-eastern or hill state, Telangana or Puducherry, confirm your current limit with a CA.

When you must register from day one

Whatever your turnover, you must register if you (Section 24 list):

Sell goods to another state. Services sold to other states are exempt up to the normal limit.
Sell through an e-commerce marketplace, with two exceptions. Service sellers are exempt up to the limit. Since 1 Oct 2023, small goods sellers below the limit are also exempt if they sell only within one state (Notification 34/2023).
Trade temporarily in another state, for example at an exhibition, as a casual taxable person. Apply at least 5 days before you start.
Must pay tax under reverse charge on what you buy.
Sell on behalf of others as an agent, or act as an input service distributor, a TDS deductor or an e-commerce operator.

Should you register voluntarily?

You can register below the limit, and many new businesses do.

Reasons to register early

You can claim input tax credit on the GST you pay on purchases.
Business customers often prefer suppliers with a GSTIN, because they can claim credit on your invoices.
You can sell to other states and on marketplaces without limits.
Your GST returns become proof of turnover when you apply for a loan (more on this below).

Reasons to wait

You must file returns every month or quarter, even when you have no sales.
You must charge GST to your customers, unless you choose the composition scheme.
If you register voluntarily but don't start business within 6 months, your registration can be cancelled.

Rule of thumb: register early if most of your customers are businesses or you plan to borrow. If you sell to consumers and are far below the limit, you can wait.

Documents you need

Keep scanned copies ready before you start: the form saves your progress, but the reference number expires after 15 days. The business name you enter must match your PAN exactly.

Type of business	Documents
Proprietorship	Owner's PAN and Aadhaar, a recent photograph, proof of business address, bank details
Partnership firm	Firm's PAN, partnership deed, PAN, Aadhaar and photographs of partners, letter naming the authorised signatory, proof of business address, bank details
LLP	LLP's PAN, certificate of incorporation, LLP agreement, partners' PAN, Aadhaar and photographs, resolution naming the authorised signatory, proof of business address, bank details
Private limited company	Company's PAN, certificate of incorporation, MOA and AOA, directors' PAN, Aadhaar and photographs, board resolution naming the authorised signatory, proof of business address, bank details

A company signs the application with a digital signature certificate (DSC). Most other businesses can sign with an Aadhaar OTP.

Proof of business address

CBIC's Circular 257/03/2026-GST (26 Oct 2026) lists exactly what works for each kind of premises:

Your premises	What to upload
Owned by you	Any one: latest property tax receipt, municipal khata, electricity bill or water bill
Rented, with a registered agreement	The registered rent or lease agreement
Rented, agreement not required to be registered	The unregistered agreement, plus one ownership document in the landlord's name
Rented, no agreement	An undertaking in the prescribed format, plus one ownership document
Used with the owner's consent (for example, a family home)	A consent letter in the prescribed format, plus one ownership document in the owner's name
Inherited, not yet in your name	Death certificate, an affidavit in the prescribed format, plus one ownership document
Co-working space	Membership agreement naming your desk or cabin, plus one ownership document in the provider's name

The same circular bars officers from asking for documents beyond this list. They can't ask for an Udyam or MSME certificate, or question whether a home address is suitable. Bank details can be added after approval, within 30 days or before your first GSTR-1, whichever comes first (summary).

How to register on the GST portal

The whole application is online and needs no office visit unless you're called for biometric verification (steps summary).

Start the application. On gst.gov.in, go to Services, then Registration, then New Registration. Choose "Taxpayer", your state and district, and enter your legal name exactly as on your PAN, your PAN, email and mobile number.
Verify and get your TRN. Enter the OTPs sent to your mobile and email. You get a Temporary Reference Number (TRN), valid for 15 days.
Fill in Part B. Log in with the TRN and complete the form (REG-01): business details, owners or partners, the authorised signatory, your main place of business and any others, and the goods or services you sell (HSN or SAC codes).
Pick the simplified route if it fits. If the GST you'll charge to registered business customers will be ₹2.5 lakh a month or less, you can opt for the 3-day route under Rule 14A. It needs Aadhaar authentication.
Opt for Aadhaar authentication. Saying yes is the faster path. Saying no means a physical check of your premises, which can take up to 30 days.
Upload documents. Add your photograph, address proof and business documents from the checklist above.
Sign and submit. Sign with an Aadhaar OTP (EVC) or a digital signature (DSC). You get an Application Reference Number (ARN) by email and SMS.
Complete Aadhaar authentication. Open the link sent to you and enter the OTP. If the system flags your application, you'll be asked to visit a GST Suvidha Kendra for biometric verification and a photograph.
Track and respond. Check your status with the ARN. If an officer raises a query (Form REG-03), reply in Form REG-04 within 7 working days.
Download your certificate. Once approved, download Form REG-06 from the portal. Your 15-character GSTIN is live.

Nobody can charge you a "government fee" for GST registration. A CA or agent may charge for their help, but the portal itself is free.

After you apply: how long approval takes

An officer reviewing your file can raise a query in Form REG-03. Reply in Form REG-04 within 7 working days, and the officer must decide within 7 working days of your reply: approve with Form REG-06, or reject with reasons in Form REG-05. If the officer misses a deadline, your registration is treated as approved. If you're stuck, you can complain to the jurisdictional Chief Commissioner (Central Tax) or Commissioner (State Tax) (Circular 257/03/2026-GST).

After registration: what you must do

Registering is the start, not the end. From the date your registration takes effect, you charge GST on your sales and file returns on time, even in months with no sales.

Show your registration. Display the certificate at your main place of business and your GSTIN on your name board.
Issue GST invoices. Every tax invoice carries your GSTIN. Since 22 Sep 2025, most goods and services fall into two rates, 5% and 18%, with 40% for tobacco, aerated drinks and some luxury items (Business Standard).
Add bank details within 30 days of approval, or before your first GSTR-1 if that comes sooner.
File returns on time. Late filing brings late fees and interest. A return can't be filed at all once three years have passed from its due date (Business Today).

Return	What it covers	Due date
GSTR-1	Details of your sales	11th of the next month, or 13th after the quarter if you're in QRMP
GSTR-3B	Summary of sales and purchases, and tax payment	20th of the next month, or 22nd or 24th after the quarter in QRMP, depending on your state
PMT-06	Monthly tax payment for QRMP filers	25th of the next month
CMP-08	Tax payment under the composition scheme	18th after each quarter
GSTR-4	Annual return under the composition scheme	30 April after the financial year

QRMP (quarterly returns, monthly payment) is open to businesses with turnover up to ₹5 crore (due dates). Due dates are sometimes extended by notification, so check the portal each month.

The composition scheme: a simpler option for small businesses

If your turnover is up to ₹1.5 crore (₹75 lakh in north-eastern states and Himachal Pradesh), you can pay a flat rate on turnover instead of regular GST (ClearTax):

1% for manufacturers and traders
5% for restaurants that don't serve alcohol
6% for service providers, with turnover up to ₹50 lakh

The trade-offs: you can't claim input tax credit, can't charge GST on your bills, and can't sell to other states. You file a quarterly payment (CMP-08) and one annual return (GSTR-4) instead of monthly returns. Existing taxpayers opt in through Form CMP-02 before the financial year starts. It suits shops and small traders who sell mainly to consumers.

Mistakes that delay or cancel a registration

Most delays come from mismatched details, not from the officer. Check these before you submit:

Name doesn't match PAN. Enter the legal name exactly as it appears on the PAN, including spelling and spacing.
Address proof doesn't match. The address on the form must match the document you upload, and the document must be recent and readable.
No consent letter or agreement. Running the business from a family home or rented space needs the consent letter, agreement or undertaking listed above.
Skipping Aadhaar authentication. It sends your application to a physical check, which can take up to 30 days instead of about 7 working days.
Missing a query. If you don't reply to Form REG-03 within 7 working days, the officer can reject the application in Form REG-05.
Wrong business activity or HSN/SAC codes. These decide your tax rate and returns, so pick the codes that match what you actually sell.
Forgetting bank details. Add them within 30 days of approval, or before your first GSTR-1.
Not filing returns after registration. Months of missed returns can lead the department to cancel your registration, and getting it back takes time and paperwork.
Paying fake portals. Some websites charge a "government fee". Apply only on gst.gov.in, or through a CA you trust.

Penalty for not registering

If you should have registered and didn't, the penalty under Section 122 of the CGST Act is ₹10,000 or the amount of tax involved, whichever is higher (Masters India). You also owe the tax you should have collected, with interest. Your business customers can't claim input tax credit on your bills either, which can cost you their business.

If you've already crossed the limit, apply now. Registering late is far cheaper than being found later.

How GST registration helps you get a business loan

Lenders want proof of what your business really sells, and GST returns are the easiest proof for them to check. Recent GST returns are among the first documents banks ask for, and incomplete GST filings are a common reason for a "no" (Kredway guides for MSME borrowers). A registration backed by a record of on-time returns lets a lender see your turnover, and that's what they use to decide how much to lend.

Register as soon as you cross the limit, or earlier if you plan to borrow in the next year.
File every return on time. Lenders check whether your returns are up to date, and even one or two missed months can hold a loan back.
Get Udyam registration too. Many MSME loan schemes ask for it. See our Udyam registration guide.

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Frequently asked questions

Is GST registration free?

Yes. The government charges no fee on gst.gov.in. A CA or agent may charge for helping you, but that's their professional fee, not a government charge.

Can I register for GST at my home address?

Yes. If the home is yours, upload a property tax receipt, electricity bill or a similar document. If it belongs to a family member, upload their consent letter in the prescribed format with one ownership document in their name. Officers can't question whether a residence is suitable for business (Circular 257/03/2026-GST).

Kya chhote business ke liye GST registration zaroori hai?

Hamesha nahi. Agar aap sirf goods bechte hain aur saal ka turnover ₹40 lakh se kam hai (services ke liye ₹20 lakh), to registration zaroori nahi hai. Lekin agar aap doosre state mein goods bechte hain, ya kisi aur "day one" category mein aate hain, to turnover kitna bhi ho, registration lena hoga. Agar aapke customers businesses hain ya aap loan lena chahte hain, to voluntary registration fayde ka sauda hai.

GST registration kaise kare?

gst.gov.in par Services, phir Registration, phir New Registration kholiye. PAN, mobile aur email se TRN banaiye, Part B form bhariye, documents upload kijiye, Aadhaar OTP se verify karke submit kijiye. Approval ke baad REG-06 certificate download kijiye. Poori process free hai.

How long does GST registration take?

The simplified route takes 3 working days: you opt for it if your monthly GST on sales to registered businesses is ₹2.5 lakh or less, or the system may grant it automatically to low-risk applicants. With Aadhaar authentication it takes about 7 working days, and up to 30 days if a physical check is needed. If the officer doesn't act within the time limit, your registration is treated as approved.

Do I need a separate GST registration for each state?

Yes. You register in every state or union territory you supply from (CBIC), and each GSTIN starts with that state's code.

What is a GSTIN?

It's your 15-character GST number. It's made up of a 2-digit state code, your 10-character PAN, one character for the number of registrations you hold in that state, the letter Z by default, and a final check character. For example: 27AAAAA1111A1ZF (format explained).

Do I need GST registration to get a business loan?

Not always. Some schemes and lenders accept Udyam registration and bank statements instead. But GST returns are the clearest proof of turnover, so a registered business with on-time returns usually has more lenders to choose from. Check which lenders fit your business.

Sources

This guide is general information, not tax advice. GST rules change often, so confirm details for your business with a CA or on gst.gov.in.

Written by the Kredway credit desk. Last updated 31 Oct 2026.

Kredway is a loan advisory service run by Lifepay Fintech Private Limited. We are not a lender or a government body, and lenders make every credit decision. This guide is for general information: check current terms with your lender before you apply.