GST Registration: Does Your Business Need It Now?

If your business earns above ₹40 lakh (₹20 lakh for services), GST registration is mandatory. Miss it and face penalties. Here's who must register, who can skip, and what it costs to ignore the rules.

Here's what happened: Under Section 22 of the CGST Act, businesses with turnover above ₹40 lakh (goods) or ₹20 lakh (services) must register for GST mandatorily.. Section 24 lists categories that must register regardless of turnover — including inter-state sellers, e-commerce operators, and reverse-charge taxpayers.. Failure to register when required attracts a penalty of 10% of tax due (minimum ₹10,000) or 100% of tax if deliberate evasion is established..

What you should do: Calculate your rolling 12-month turnover now — if you are approaching ₹20L (services) or ₹40L (goods), begin the GST registration process on the GST portal immediately.. Check whether your business falls under Section 24 compulsory categories — inter-state sales or selling via Amazon/Flipkart requires registration from the very first rupee of turnover.. If already above the threshold and unregistered, file for registration without delay and consult a CA about back-period liability to avoid a 100% penalty notice..

Voluntary GST registration below the threshold lets you claim input tax credit on raw materials and services — if your suppliers are GST-registered, this can reduce your effective costs by 5–18%.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.