GST registration process 2026

GST registration is mandatory once a business's aggregate annual turnover crosses Rs. 40 lakh for goods suppliers or Rs. 20 lakh for service providers, and compulsorily in specified categories under Section 24 of the CGST Act regardless of turnover. The registration process is executed online via Form GST REG-01 on the GST Common Portal, utilizing Aadhaar authentication or biometric verification, leading to the issuance of the GST Registration Certificate in Form GST REG-06.

Understanding GST Registration Thresholds (Section 22)

Under Section 22 of the CGST Act, every supplier is liable to be registered in the State or Union Territory from where they make a taxable supply of goods or services if their aggregate turnover in a financial year exceeds the prescribed threshold. Aggregate turnover is computed on an all-India basis under a single PAN (Permanent Account Number), encompassing taxable supplies, exempt supplies, exports of goods or services, and inter-state supplies of persons having the same PAN, but excluding taxes charged under GST law.

Special Category States under Article 279A(4)(g) of the Constitution have lower thresholds to account for local economic conditions. Currently, Manipur, Mizoram, Nagaland, and Tripura enforce a flat Rs. 10 lakh threshold for both goods and services. States like Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Himachal Pradesh, and Jammu & Kashmir have adopted the Rs. 20 lakh limit for service providers, while some have opted for Rs. 40 lakh for goods.

Compulsory Registration Categories Under Section 24

Section 24 of the CGST Act overrides the threshold limits established under Section 22. If a business falls under any of the following categories, it must register for GST compulsorily, even if its annual turnover is zero:

• Inter-State Taxable Suppliers: Anyone making taxable supplies of goods across state borders (except service providers who enjoy a threshold exemption up to Rs. 20/10 lakh under Notification No. 10/2017-Integrated Tax).
• Casual Taxable Persons (CTP): Persons who occasionally undertake transactions involving supplies of goods or services in a territory where they have no fixed place of business. CTPs must apply for registration at least 5 days prior to commencing business and make an advance deposit of estimated tax liability.
• Non-Resident Taxable Persons (NRTP): Persons who occasionally make taxable supplies of goods or services in India but have no fixed place of business or residence in the country.
• Reverse Charge Payers: Persons who are liable to pay tax under reverse charge mechanism (RCM) under Section 9(3) or 9(4) of the CGST Act (e.g., businesses receiving legal services from advocates, transport services from GTAs, or importing services from foreign vendors).
• E-commerce Operators (ECO): Operators who are required to collect tax at source (TCS) under Section 52.
• Suppliers selling through ECOs: Persons supplying goods or services through an e-commerce operator (except service providers who do not cross the Rs. 20 lakh aggregate threshold, and certain small goods suppliers under notification-based relaxations).
• Input Service Distributors (ISD): Offices of the supplier of goods or services which receive tax invoices towards input services and distribute the credit to branch offices.

Detailed Step-by-Step Registration Workflow (Form REG-01)

The application for GST registration is a two-part digital process conducted exclusively on the GST portal (gst.gov.in):

Step 1: Part A of Form GST REG-01

1. Navigate to the GST portal and select "New Registration" under Services.
2. Provide basic details: Taxpayer Category, State/UT, District, Legal Name of Business (as per PAN), PAN, Email Address, and Mobile Number.
3. Verify the mobile number and email via separate One-Time Passwords (OTPs) sent by the system.
4. Upon successful verification, the portal generates a 15-digit Temporary Reference Number (TRN) sent to your email and mobile.

Step 2: Part B of Form GST REG-01

Log in using the TRN and complete the detailed Part B application within 15 days of TRN generation. Part B is divided into several tabs requiring detailed corporate disclosures:

1. Business Details: Trade name, constitution of business (Proprietorship, Partnership, LLP, Company), sector, and reason to obtain registration.
2. Promoters/Partners: Personal credentials, PAN, Aadhaar, and photographs of the promoters, partners, or directors.
3. Authorized Signatory: Appoint authorized representatives and upload authorization letters or board resolutions.
4. Principal Place of Business: Detailed address (geotagged if possible), contact info, nature of possession of premises (Owned, Leased, Rented, Consent), and proof of place of business.
5. Goods and Services: Mention the top 5 HSN codes (for goods) or SAC codes (for services) supplied by the business.
6. State Specific Information: Professional Tax registration numbers, lease details, etc. (optional).
7. Aadhaar Authentication: Select whether the promoters and authorized signatories wish to undergo Aadhaar authentication.

Aadhaar Authentication and the Biometric Mandate

To curb fake registrations and tax invoice fraud, the government has tightened authentication rules. If you opt for Aadhaar Authentication, an authentication link is sent to the registered mobile numbers of the promoters and signatories. They must click the link, enter their Aadhaar numbers, and verify via OTP.

Under recent rules (implementing biometric-based Aadhaar authentication in select states like Gujarat, Puducherry, and Andhra Pradesh), high-risk applicants identified by the system's risk-rating algorithms are directed to visit a GST Suvidha Kendra (GSK). At the GSK, the applicant must undergo biometric verification (fingerprints and iris scans) and physical document validation before the application is processed.

If an applicant opts out of Aadhaar authentication or is flagged as high-risk, the tax officer may conduct a physical verification of the principal place of business under Rule 25 before granting registration, which extends the approval timeline.

Required Documents Checklist

Acceptable Proofs of Business Address: For owned premises, upload the latest electricity bill, municipal khata copy, or property tax receipt in the name of the business owner. For rented/leased premises, upload a valid rent agreement or lease deed along with a utility bill in the landlord's name. For consent-based premises (e.g., shared offices, family-owned property), upload a No Objection Certificate (NOC) signed by the property owner, accompanied by their address proof.

The Clarification Cycle (Form REG-03 & REG-04)

Once the application is submitted, it is routed to the jurisdictional officer (State or Central). The officer reviews the details and documents. If the officer finds any discrepancies, missing documents, or unclear photos, they will issue a show-cause notice in Form GST REG-03 within 7 working days (or 30 days if Aadhaar authentication was not done or physical verification is pending).

The applicant must reply to the queries online in Form GST REG-04 within 7 working days of receiving the REG-03. If the officer is satisfied with the clarification, they will approve the application and issue the GSTIN along with the GST Registration Certificate in Form GST REG-06 within 7 working days. If the reply is unsatisfactory or not submitted, the officer can reject the application in Form GST REG-05.

Consequences of Late or Non-Registration

Section 122 of the CGST Act mandates strict penalties for businesses operating without registration despite being liable to register. A penalty of Rs. 10,000 or the tax evaded, whichever is higher, can be levied. Furthermore, under Section 16, B2B clients cannot claim Input Tax Credit (ITC) on purchases made from unregistered suppliers who were legally required to charge GST, leading to contract terminations and commercial disputes.

Post-Registration Rule 10A Compliance: Within 30 days of receiving the registration certificate, the taxpayer must update their bank account details on the GST portal. Failure to do so will lead to the suspension of the GST registration, preventing the taxpayer from filing GSTR-1 returns or generating e-way bills.