Many small businesses register for GST only after a customer asks for a GST invoice. It is better to know in advance when registration becomes compulsory, because supplies made after crossing the threshold without registration can attract tax, interest and penalty.
Turnover thresholds
In Maharashtra, registration is required when aggregate turnover in a financial year exceeds ₹40 lakh for businesses supplying only goods, and ₹20 lakh for service providers. Aggregate turnover includes taxable, exempt and export supplies across all branches with the same PAN, but excludes GST itself.
When registration is needed regardless of turnover
- Inter-state supply of goods
- Selling goods through an e-commerce operator, with limited exceptions
- Persons liable to pay tax under reverse charge
- Casual taxable persons and non-resident taxable persons
- Input service distributors
Documents usually required
- PAN of the business and of the proprietor, partners or directors
- Aadhaar for authentication
- Proof of the place of business, such as a rent agreement or electricity bill
- Bank account details
- Constitution documents: partnership deed, LLP agreement or certificate of incorporation
Should you register voluntarily?
Voluntary registration lets you claim input tax credit and supply to businesses that need GST invoices. It also brings monthly or quarterly filing obligations. The decision depends on who your customers are and how much GST you pay on purchases.
If you are close to the threshold or unsure whether your activities need registration, review the position before the year's turnover crosses the limit.
This article is general information based on the law as it stood on the date of publication. It is not advice for any specific situation.