All businesses have to pay taxes. The Goods and Services Tax (GST) is the main tax in India that most businesses have to pay. But not everyone has to register for GST. Whether you run your own business or work for someone else, it is very important to know the guidelines for signing up for GST.
What Exactly Is GST?
The Goods and Services Tax (GST) is a single tax that takes the place of several other indirect taxes, such as VAT, excise duty, and service tax. There used to be various taxes at each level, from making things to selling them. Now there is simply one tax.
Every transaction collects GST, and the following one gives it back, keeping the tax burden even. So. you pay GST whether you buy a laptop or get your car fixed.
Who Should Register for GST?
In the past, there were different taxes that applied from manufacture to the end of the sale. Now, there is only one tax. Following are the primary groups of people who need to sign up for GST:
Businesses with a lot of money over a Certain Limit
If you make more than a certain amount of money each year, you have to register for GST. To be specific:
- For Goods: ₹40 lakhs (₹20 lakhs in some places)
- For services: ₹20 lakhs (or ₹10 lakhs in some states, including those in the North-East).
If You Sell Outside Your State
Even if your revenue is lower than the limit above, if you’re selling goods or services from one state to another, you need GST registration. For example, if you’re shipping products from Delhi to Maharashtra, you’re doing interstate supply, and GST registration is compulsory.
E-commerce Sellers
Regardless of your sales volume, you are obligated to register for GST if you sell through Flipkart, Amazon, Meesho, or any other online platform. This applies to both goods and services.
Casual or Temporary Business Owners
Running a stall at a trade fair or exhibition? Doing business in a different state for just a few weeks? You still need temporary GST registration under the “casual taxable person” category.
Those Liable to Pay Tax Under Reverse Charge
With reverse charge, certain businesses have to pay GST instead of their suppliers. If this applies to you, you still need to register even if your sales are below the normal limit.
Input Service Distributors (ISD)
If your business has multiple branches and you want to distribute input tax credit between them, you’ll need GST registration as an ISD.
Agents and Aggregators
You need to register under GST if you sell products or services for someone else or if you run a digital platform like Uber or Swiggy.
Freelancers and Service Providers
A question that comes up a lot. If you work as a freelancer or consultant and make more than ₹20 lakhs (or ₹10 lakhs in some regions), you have to register. This includes writing, design, tech support, and marketing. These GST rules apply no matter where you operate, even if you work from home without a separate workplace.
A Quick Word on GST and Payment
After you sign up, you’ll have to file your GST returns every month, every three months, or every year, depending on your category. You will also need to make payments on time.
The good news? GST and payment processes are fully online. You can pay using:
- Net banking
- UPI
- Debit/credit cards
- NEFT/RTGS
Just don’t miss deadlines—late payments can attract penalties and interest.
Why It’s Better to Stay Compliant
Even if you’re just starting, keeping things clean with GST helps:
- Build trust with vendors and customers
- Let you claim input tax credit.
- Avoid fines or business disruptions.
It also helps if you plan to scale your business. Many buyers and companies only deal with GST-registered businesses.
Conclusion
It’s important to understand GST registration, especially for businesses nowadays. It’s a good idea to find out if you need to register if you sell handcrafted goods on social media, give consulting advice, or run a growing internet business.
If you’re not sure, talk to a tax expert or a CA. It’s crucial to register for GST not just for taxes, but also to manage a business the right way.
