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There is no single turnover figure that answers every small business’s GST questions. Registration depends on PAN-wide aggregate turnover, the nature and location of supplies, and any applicable compulsory-registration rule or exception. After deciding whether registration applies, choose between regular taxation and composition only if eligible, check whether QRMP is available, and confirm separate nil-return and e-invoicing obligations.
This guide reflects official portal guidance available as of October 7, 2026. GST rules and notifications can change; check the current provision for your facts before acting.
Do I need GST registration if my turnover is below ₹20 lakh?
Possibly, but turnover below ₹20 lakh does not by itself establish that registration is unnecessary. The applicable threshold depends on the business’s activity, state and relevant rules. Specified compulsory-registration provisions can also apply even when turnover is below an ordinary threshold; the particular supply and any exception matter. The CBIC FAQs and CBIC Sectoral FAQs provide general framing, but some examples on CBIC pages are historical. Do not treat older ₹20 lakh or ₹10 lakh examples as a complete statement of the current rule.
Before deciding, establish what the business supplies, where it supplies it, its state, and whether a specific compulsory-registration rule or exemption applies. A threshold is a starting point for the analysis, not a universal safe harbour.
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Calculate aggregate turnover across the PAN
CBIC describes aggregate turnover as the all-India total for persons with the same PAN. It includes taxable supplies, exempt supplies, exports and inter-state supplies, while excluding GST and compensation cess. Inward supplies on which the recipient pays tax under reverse charge are excluded from this calculation. Therefore, do not assess a branch or GSTIN in isolation: combine relevant supplies across the PAN before comparing turnover with an applicable threshold. See the CBIC FAQs and CBIC Sectoral FAQs.
Facts to gather before making the decision
- State or states in which the business operates and makes supplies.
- Whether it supplies goods, services, or both, and whether any supplies are exempt.
- PAN-wide aggregate turnover, including relevant activity across locations.
- Inter-state, e-commerce and other supply activity that may affect the applicable rule.
- Any compulsory-registration provision or exemption relevant to those supplies.
How do I apply for GST registration?
For a normal taxpayer, the GST Portal’s route is Services > Registration > New Registration. The portal application asks for business and place-of-business information, supply categories and verification. The GST Portal registration tutorial also covers state details and Aadhaar authentication.
- Open Services > Registration > New Registration on the GST Portal.
- Complete the requested business details, principal and additional place-of-business information, state information and goods/services details.
- Complete the verification steps shown in the application, including any applicable Aadhaar authentication, and submit the application.
- Track the application and respond to any portal request for further information or verification.
The GST Portal tutorial states that normal registration is effective from the date liability arises if the application is filed within 30 days of that date. If the application is filed later, the effective-date treatment differs. The 30-day period is not a substitute for determining when liability began; see the official tutorial for the process and effective-date explanation.
Should I choose the composition scheme or regular registration?
Composition may reduce some compliance work for an eligible small taxpayer, but it changes how the business can transact. Eligibility depends on activity, turnover conditions and state-specific rules. Check current statutory conditions rather than relying on a single threshold example; the CBIC Sectoral FAQs and GST Portal Welcome Kit provide relevant guidance.
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| Decision point | Composition | Regular registration |
|---|---|---|
| Eligibility | Only available when the taxpayer meets the applicable conditions for its business type, turnover and state; verify current rules. | Subject to the registration rules that apply to the business. |
| Tax invoice and customer tax | Cannot issue a taxable invoice or collect GST separately from customers, according to the GST Portal Welcome Kit. | Can issue taxable invoices and charge applicable GST, subject to the rules for the supply. |
| Input tax credit | Cannot claim input tax credit, according to the GST Portal Welcome Kit. | Input tax credit may be available subject to applicable conditions. |
| Inter-state supplies | The GST Portal Welcome Kit says composition taxpayers cannot make inter-state supplies. | Inter-state supplies are not barred merely by choosing regular registration; applicable supply and tax rules still apply. |
| Customer and operating fit | May be a poor fit where business customers expect a tax invoice and input tax credit, or where inter-state sales are part of the model. | May better fit businesses whose customers need tax invoices or whose operations require inter-state supplies. |
Compare eligibility, customers, input costs, supply geography and the filing obligations that apply to each option. The restrictions above are not a complete eligibility test; confirm the current rules before opting in or continuing under composition.
Can a small business file GST returns quarterly?
Eligible regular taxpayers with annual aggregate turnover up to ₹5 crore may opt for the Quarterly Return Monthly Payment (QRMP) scheme. Under QRMP, GSTR-1 and GSTR-3B are filed quarterly, but tax is paid monthly by challan. The ₹5 crore ceiling and scheme conditions are described in the GST Portal QRMP FAQ; quarterly filing does not mean that tax is paid only once per quarter.
| Arrangement | Return filing | Tax payment | Who can use it |
|---|---|---|---|
| QRMP | GSTR-1 and GSTR-3B quarterly | Monthly by challan | Eligible regular taxpayers at or below ₹5 crore annual aggregate turnover, subject to portal prerequisites. |
| Other applicable filing cycle | Follow the filing frequency that applies to the taxpayer and return. | Follow the applicable payment requirements. | Taxpayers who are not eligible for, or do not use, QRMP. |
The GST Portal says QRMP requires regular-taxpayer status (or opting out of composition), turnover within the ceiling, and filing the latest GSTR-3B, among other portal conditions. Check the portal’s current eligibility and profile instructions before opting in.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Do I need to file a nil GSTR-1?
If you are required to file GSTR-1, the GST Portal says you must file it even for a tax period with no business activity. Composition taxpayers and several other categories are excluded from GSTR-1 and follow their applicable forms and obligations instead. Check the GST Portal GSTR-1 guidance to confirm whether the form applies to your category; a nil period does not itself remove a filing obligation.
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Is e-invoicing mandatory for my business?
The GSTN-authorized Invoice Registration Portal lists e-invoicing applicability for taxpayers above ₹5 crore aggregate annual turnover, subject to exclusions and the relevant notifications. Treat that figure as a threshold to check, not a stand-alone answer for every business. Confirm the business’s turnover history, category and any exclusion against current rules on the IRP e-invoicing mandate page.
For covered transactions, the IRP process authenticates specified documents and returns an Invoice Reference Number (IRN). E-invoicing applicability is a separate question from whether the business must register for GST: assess each obligation under its own rules.
Quick Recap
What should I verify before choosing a filing or registration route?
- Compute all-India aggregate turnover across the PAN, using the applicable definition.
- Identify the business’s state, goods or services, exempt supplies, inter-state and e-commerce activity, and customer mix.
- Check current registration rules, compulsory-registration provisions and exceptions for the actual supplies.
- If considering composition, verify eligibility and assess the effect of its invoice, input-tax-credit and inter-state restrictions.
- If considering QRMP, confirm regular-taxpayer status, the turnover ceiling and return prerequisites on the GST Portal.
- Check separately whether GSTR-1 applies in a nil period and whether the e-invoicing mandate covers the business.
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