Accounting Software · Updated 20 Oct 2026
GST Registration: When Does a Small Business Need It?
A plain-language overview of GST registration thresholds, compulsory registration cases and what changes once you register.
- Registration thresholds depend on whether you supply goods or services and on your state.
- Some businesses must register regardless of turnover — for example, many inter-state and e-commerce sellers.
- Always confirm your situation with a tax professional.
One of the first questions new business owners ask is "Do I need GST?" The answer depends on what you sell, where you sell and how much.
Turnover thresholds
In general, suppliers of goods must register once aggregate turnover exceeds ₹40 lakh in a financial year (₹20 lakh in certain special-category states), and suppliers of services once it exceeds ₹20 lakh (₹10 lakh in certain special-category states). States can opt in or out of the higher goods threshold, so check the rule for yours.
When registration is compulsory regardless of turnover
- Making inter-state taxable supplies of goods (with limited exceptions).
- Selling through e-commerce operators, in many cases.
- Being liable under reverse charge.
- Casual taxable persons and non-resident taxable persons.
Should you register voluntarily?
Voluntary registration lets you claim input tax credit and sell to GST-registered businesses that want credit. It also brings filing obligations. If most of your customers are businesses, registration is often worth it.
What changes after registration
You must issue proper tax invoices, file regular returns and keep records. This is when GST billing software starts paying for itself.
This guide is general information, not tax advice. Thresholds and rules change by notification.
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