GST registration applicability

Start with the person and supplies

Identify the legal person and PAN, the places from which supplies are made and whether the activity involves goods, services or both. Prepare an all-India turnover reconciliation rather than testing each invoice or branch in isolation.

Classify taxable, exempt, export and inter-state supplies under the statutory aggregate-turnover definition. Keep this separate from the calculation of tax payable.

Use the appropriate threshold

Section 22 establishes the general registration framework, commonly using ₹20 lakh with lower limits in specified states. The conditional ₹40 lakh exemption concerns eligible persons exclusively supplying goods; it is not a universal threshold for every business.

Review the state, product exclusions, compulsory-registration provisions and notification conditions before relying on the higher goods threshold. A business supplying services should not adopt ₹40 lakh simply because it also sells products.

Where the ₹40 lakh goods exemption does not apply

The notification excludes intra-state supplies in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. Identify the applicable lower threshold separately; exclusion from ₹40 lakh does not itself establish a uniform alternative across these jurisdictions.

Product exclusions include ice cream and edible ice, pan masala, tobacco products, and specified bricks, fly-ash products and tiles. Check the notified tariff classification rather than relying on a product’s everyday name. Compulsory-registration cases also require separate analysis.

Exempt interest or discount from deposits, loans or advances does not by itself defeat the goods-only treatment under section 22’s explanation, but that income still enters aggregate turnover. This is different from adding an ordinary taxable consulting service.

Sources: Notification 10/2019-Central Tax and ICAI handbook, February 2026, chapter 4 (pages 52–53), including the 2022 product amendments. Consulted 1 October 2026.

Check compulsory registration and exemptions together

Assess section 24 and the applicable exemption notifications for the actual activity, including relevant inter-state, e-commerce, reverse-charge and other specified cases. Avoid blanket statements that every inter-state or online supplier must register regardless of available exemptions.

Record the exact provision and conditions supporting the conclusion. Exclusive exempt supplies and other section 23 cases need separate review rather than a turnover-only decision.

Determine where registration is needed

Map the states and union territories from which taxable supplies are made. Review premises and operational facts, including warehouses and other business locations. A customer in another state does not by itself establish a place of business there.

Document how the supply model works before choosing the registration footprint. Keep the conclusion aligned with contracts, stock movements and invoicing.

Prepare the applicability file

• Entity and PAN details, business activities and premises map.
• Turnover reconciliation with supply classifications.
• Contracts, invoices and evidence of where supplies originate.
• Assessment of compulsory-registration rules and relevant exemptions.
• The date liability arises and the resulting application timetable.

Example: a mixed goods-and-services business

A business sells equipment and separately provides consulting services. It should not assume that the conditional goods-only ₹40 lakh exemption applies to its combined activity. It must assess the supply mix, applicable statutory treatment and state-specific threshold before deciding whether registration is required.

Consider voluntary registration deliberately

Where voluntary registration is available, evaluate the resulting invoicing, return, recordkeeping and tax obligations alongside the commercial reasons for registering. Do not treat a GST number as a badge that has no continuing consequences.

If registration is required, assemble the documents and use the official portal workflow. Track the application through queries and the final registration record.

Review the conclusion when the business changes

Reassess when turnover grows, activities change, a new state location opens or a new sales channel is introduced. Keep the assessment dated and assign a person to monitor the trigger conditions.

Registration, composition eligibility and input-tax-credit entitlement are different questions. Complete each assessment without assuming that one approval answers the others.

Apply on time and complete the submission

For a normal taxpayer, the portal manual distinguishes an application filed within 30 days of becoming liable from a late application. In the first case, registration takes effect from the liability date; for a late application, it takes effect from the grant date. Record the actual trigger date rather than substituting the date you began preparing documents. Casual taxable persons have a separate advance-application requirement: at least five days before business commences.

Part A establishes the applicant details and temporary reference number (TRN). Complete Part B and submit the application; saving a draft does not complete registration. The manual states that unsubmitted TRN applications are purged after 15 days. Keep the acknowledgement and track the application through validation, queries and the eventual registration outcome.

These application steps do not promise an approval date. Check the taxpayer category and authentication requirements before planning the first transaction. GST portal registration manual: Part A, Part B and Business Details (consulted 1 October 2026).