Goods and Services Tax (GST) is a unified tax structure that replaces multiple indirect taxes in India. For startups and small businesses, registering for GST is a major milestone that can expand your B2B sales potential and enable you to claim Input Tax Credit (ITC).
This guide explains the thresholds, step-by-step process, compliance rules, and best practices for startups and small business owners in India.
GST Registration Threshold Limits
You are legally required to register for GST if your annual turnover exceeds these limits:
| Business Type | Normal Category States | Special Category States (NE & Hilly) |
|---|---|---|
| Supply of Goods Only | ₹40 Lakh | ₹20 Lakh |
| Supply of Services / Mixed | ₹20 Lakh | ₹10 Lakh |
Step-by-Step Registration Process
Generate TRN (Temporary Reference Number)
Go to the GST Portal (gst.gov.in) -> Services -> Registration -> New Registration. Enter your PAN, Email, and Mobile to receive OTPs and generate a TRN.
Fill the Application Form
Login using the TRN. Fill in business details, promoters/partners info, authorized signatory, principal place of business, and commodity details.
Upload Required Documents
Upload PAN card, proof of business address (property tax receipt/lease agreement/consent letter), bank account proof, and authorization letter.
Submit using DSC or EVC
Verify using Aadhaar authentication (highly recommended for fast approval) and submit using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
ARN & Verification
Upon submission, an Application Reference Number (ARN) is generated. The tax officer verifies your details and approves the GSTIN within 3–7 working days.