Compulsory Registration Under GST: Rules and Process

By Tanya Gupta

|

Updated on: May 29th, 2025

|

3 min read

Registration under GST is a legal requirement for businesses. The CGST Act 2017 specifies minimum turnover criteria for registration (Rs 40 lakhs for goods and Rs 20 lakhs for services). Still, certain specific businesses are required to register under the GST, irrespective of their annual turnover.

Section 24 – Compulsory Registration under GST  

Section 24 of the CGST Act 2017 requires the following persons to register under GST, irrespective of their annual turnover:

  • Entities involved in inter-state supply of goods or services (e.g., goods or services sold from an entity located in Maharashtra to its customer located in Delhi)
  • Casual Taxable Person (e.g., a person who has a fixed establishment in Rajasthan and wants to participate in a trade fair in Bengaluru; it has to obtain registration as a casual taxable person in the state of Bengaluru)
  • Non-resident Person making taxable supply (e.g., a foreign exhibitor selling goods at any Indian exhibition)
  • Entities which are liable to pay tax under the reverse charge mechanism (RCM) (e.g. when availing legal services from advocates, a business has to take compulsory registration)
  • E-commerce operators (e.g. Amazon, Meesho or Ola, websites which are involved in selling goods and services online)
  • Input Service Distributors (e.g. A company's head office distributing input tax credit (ITC) of common expenses to its subsidiary or associate companies)
  • Entities involved in online information and database access or retrieval (OIDAR) services from a place outside India to any unregistered person in India (e.g., a US-based company which provides cloud services to entities in India)
  • Any entity involved in online money gaming from a place outside India to person in India
  • Entities who are required to detect tax under Section 51 of the CGST Act (e.g., payment made by government entities to their suppliers) 

Who is Required to Register Compulsorily under GST?

Any person, whether an individual, HUF, partnership or company whose annual turnover in a financial year is more than Rs 40 lakhs in case the person is involved in the sale of goods or Rs 20 lakhs in case of services, is required to obtain registration under GST. (Ref. Section 22 of CGST Act, 2017)

Other than this, certain categories of entities are required to register under GST, irrespective of their annual turnover, as discussed above. (Ref. Section 24 of CGST Act, 2017)

GST Registration Process

After visiting the government portal, gst.gov.in, depending upon the category (for example, regular taxpayer, composition casual taxable person, or input service distributor (ISD)), register itself under GST. 

After providing basic details such as PAN, mobile number, and email ID, a temporary reference number (TRN) will be generated after OTP verification.

Form GST-REG-01 will require various details relating to the business, such as 

  • location or place of business, 
  • constitution of the business, 
  • personal details of the proprietor, partner, or director, 
  • bank account, and 
  • HSN code of the product involved in the business

After all details are submitted and the application is verified via EVC or DSC (which companies and LLPs require), an acknowledgement reference number (ARN) will be shared to the taxpayer's registered mobile number and email ID. 

Typically, the GST department requires 3-7 business days to process your application and provide a GST number.

Click on the link for a detailed process.

You can also read:
GST Registration Threshold Limits
GST Registration Online
Documents Required For GST Registration
How to change GST registration details of a business?
How to check GST Registration Status & GST Application ARN Status

Frequently Asked Questions

What is compulsory registration under GST?

Businesses with a turnover above Rs 40 lakhs involved in the sale of goods or Rs 20 lakhs in the case of services and entities satisfying specific conditions stipulated under Section 24 of the CGST Act, 2017 are compulsorily required to register under GST.

What is the compulsory limit for GST registration?

When an entity turnover crosses Rs 40 lakhs via the sale of goods or Rs 20 lakhs via the sale of services. For entities in special category states (for instance, Assam or Manipur), the turnover limit is Rs 20 lakhs and Rs 10 lakhs for goods and services, respectively.

What is the need for compulsory registration?

GST registration helps the government to keep a bird's eye on transactions between taxpayers involved in high-value transactions. 

Who is compulsory for GST registration?

Entities with an annual turnover above the exemption limit or entities that satisfy certain conditions discussed above are required to register compulsorily under GST.

When is GST registration compulsory in India?

An entity must check whether its turnover exceeds the limit under Section 22 of the CGST Act, 2017, or whether it is specifically covered under Section 24. However, an entity that does not satisfy the conditions may voluntarily register under GST.

Is a current account compulsory for GST registration?

A current bank account is not mandatory during the GST registration process. However, it is advisable to use one if it is available.

Is DSC compulsory for GST registration?

For companies and LLPs, DSC is compulsory for registration. Other entities have the option to use EVC or DSC.

Is GST registration compulsory for the export of services?

The export of services is considered interstate supplies; accordingly, an entity must obtain GST registration.

About the Author
author-img

Tanya Gupta

Content Writer
social icons

A Chartered Accountant by profession and a content writer by passion, I've dedicated my career to unraveling the complexities of GST. With a firm belief that learning is a lifelong journey, I've honed my skills in simplifying intricate legal jargon into easily understandable content. The satisfaction of transforming complex tax laws into relatable narratives is what drives me. Read more

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption