A five-question GST registration test
| Question | Why it matters |
|---|---|
| What is the aggregate turnover across the PAN? | Section 22 uses aggregate turnover, not only one branch or one invoice stream. |
| Is the business exclusively supplying goods, services, or both? | The enhanced threshold up to ₹40 lakh applies only in the notified goods-only framework and subject to conditions. |
| Are supplies taxable, exempt, or outside GST? | Section 23 can remove registration liability for businesses exclusively making exempt/non-liable supplies. |
| Does a compulsory-registration provision apply? | Section 24 can override the normal turnover threshold, though notifications create exceptions for some activities. |
| From which state/UT is the supply made? | GST registration is state/UT based; the place of business and supply model affect which registration is needed. |
General threshold framework
The statutory starting point is ₹20 lakh aggregate turnover. The CGST Act also allows states, on recommendation of the GST Council, to adopt an enhanced threshold up to ₹40 lakh for eligible persons engaged exclusively in the supply of goods, subject to notified conditions. Lower limits operate in specified special-category contexts. Because thresholds interact with notifications and business activities, a current state/activity check is necessary.
Compulsory registration: do not use an outdated checklist blindly
Section 24 contains several compulsory-registration categories. However, later notifications have granted threshold-based relief to specified classes, including certain service suppliers making interstate supplies and specified suppliers through e-commerce operators. Therefore, the safest method is to identify the exact clause that appears relevant and then check the current notification position.
Voluntary registration
A business below the mandatory threshold can register voluntarily. This can be commercially useful in some B2B situations, but it also creates return, invoice, tax-payment and record-keeping responsibilities. Voluntary registration should be a business decision, not just a way to obtain a GSTIN logo for a website.