Who Is Eligible for GST Registration: Criteria for Individuals and Firms

Any person or business engaged in the supply of goods or services with an aggregate turnover exceeding ₹40 lakh in a financial year must register for GST. For special category states (such as Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and the North-Eastern states), this threshold is ₹20 lakh. For suppliers of only goods, the threshold is ₹40 lakh, while for service providers, it is ₹20 lakh in normal category states.

The turnover threshold is calculated on an all-India basis, meaning you aggregate turnover from all business verticals across all states. If your turnover exceeds the applicable threshold, you must register within 30 days from the date you become liable. Failure to register can result in a penalty of ₹10,000 or the tax amount, whichever is higher.

Certain categories of suppliers must register for GST even if their turnover is below the threshold. These include persons making inter-state taxable supply, casual taxable persons, non-resident taxable persons, agents of a supplier, input service distributors, e-commerce operators, and persons who supply goods or services through an e-commerce operator.

Additionally, every person who is required to deduct tax at source under section 51 of the CGST Act, or collect tax at source under section 52, must register. Aggregators who supply services under their brand name, and persons who supply online information and database access or retrieval services from outside India to a person in India, are also required to register. These mandatory categories ensure that the tax chain is not broken and that compliance is maintained across all supply channels.

Aggregate turnover includes the aggregate value of all taxable supplies, exempt supplies, exports of goods or services, and inter-state supplies of persons having the same PAN. It excludes the value of inward supplies on which tax is payable on reverse charge basis, and the value of supplies by a composition taxpayer.

The calculation is done on a financial year basis, and you must consider the turnover of all your business units registered under the same PAN. For example, if you run a restaurant in Delhi and a bakery in Mumbai, both under the same PAN, you must combine their turnovers to determine if you exceed the threshold. If the combined turnover exceeds ₹40 lakh, you must register in both states. The turnover is calculated at the PAN level, not at the state level.

For individuals and sole proprietors, the eligibility is based on the turnover threshold or mandatory categories. For partnerships and LLPs, the same turnover thresholds apply, and the registration is obtained in the name of the firm. For companies, including private limited and public limited, registration is mandatory regardless of turnover if they are engaged in inter-state supply or fall under mandatory categories.

For Hindu Undivided Families (HUFs), the registration is obtained in the name of the HUF with the Karta as the authorized signatory. For trusts and societies, registration is required if they are engaged in taxable supplies and meet the turnover threshold. For government departments and local authorities, registration is mandatory if they are engaged in business activities. Each entity type must provide specific documents such as PAN, proof of business registration, address proof, and bank account details.

For individuals and sole proprietors, you need your PAN card, Aadhaar card, passport-size photograph, address proof of the business premises (rent agreement or ownership document), and bank account details (cancelled cheque or bank statement). For partnerships, you additionally need the partnership deed and PAN cards of all partners.

For companies, you need the Certificate of Incorporation, Memorandum and Articles of Association, PAN of the company, PAN and Aadhaar of directors, board resolution authorizing the registration, and address proof of the registered office. For LLPs, you need the LLP agreement and PAN of the LLP and partners. All documents must be uploaded on the GST portal during the application process. The application is processed within 7 working days if all documents are in order.

If you are unsure whether your business meets the eligibility criteria for GST registration, review your aggregate turnover and check if you fall under any mandatory registration category. For specific guidance on your business structure or turnover calculation, consult a qualified chartered accountant or GST practitioner.

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This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.