When does your business need GST registration?

Registering for GST is a threshold decision: cross it and you are a regular taxpayer with monthly returns to file; stay under it and compliance is far lighter. The thresholds are different for goods and services — and, importantly, lower in Manipur and Mizoram. Here is how to know where you stand.

The registration thresholds

Turnover here means aggregate turnover across all businesses with the same PAN, counted from 1 April.

Registration is compulsory regardless of turnover

Even below the threshold, you must register if any of these apply to you:

• You make inter-state supplies of goods or services.
• You sell through an e-commerce marketplace (Flipkart, Amazon, Meesho, etc.).
• You are liable under reverse charge for purchases from unregistered suppliers.
• You are a casual or non-resident taxable person supplying in India.

Should you register voluntarily?

Many small businesses register even below the threshold, and it is often the right call:

• Input tax credit — you can reclaim the GST you pay on purchases, which you lose entirely if unregistered.
• B2B credibility — registered businesses prefer suppliers with a GSTIN, so they can claim credit on their own purchases.
• Inter-state growth — the door to selling outside your state opens.

The composition scheme shortcut

Registered businesses with turnover up to ₹75 lakh for goods in Manipur and Mizoram (₹1.5 crore in general states) or ₹50 lakh for services can opt for the composition scheme: a low flat-rate tax, no ITC, and only one quarterly return. It is the cheapest compliance path for small traders — at the cost of not being able to claim input credit or issue regular tax invoices.

What not registering costs

If you cross the threshold and fail to register, the department can charge penalty equal to 100% of the tax due, plus interest — a bill that dwarfs the modest compliance effort of simply registering in time. Registration is free and takes days.