GST Registration and Returns in India: Thresholds, GSTR-1, GSTR-3B and GSTR-9

GST registration in India is the first indirect-tax step for any business that sells goods or services there. Registration gives you a 15-digit GSTIN, the right to charge GST and claim input tax credit (ITC), and a calendar of monthly or quarterly returns. This guide covers who must register, how to apply on the GST portal, which returns fall due when, and what foreign sellers should know. Amounts use lakh (100,000) and crore (10 million).

Who needs GST registration in India?

Registration depends on aggregate turnover and on the kind of supplier. At its 32nd meeting, the GST Council decided that states may choose a registration threshold of Rs 20 lakh or Rs 40 lakh for suppliers of goods, and it kept the existing Rs 20 lakh level for services. The Council made the goods option on the footing that it would not affect inter-State trade, so a goods supplier making inter-State supplies should assume it must register whatever its turnover and confirm with its CA. The composition scheme limit for goods was raised to Rs 1.5 crore from 1 April 2019, with tax paid quarterly and one annual return. These are the Council's published 2019 decisions; confirm the figures for 2026-27 with your state GST office or CA before relying on them.

Some suppliers register regardless of turnover:

• Non-resident taxable persons (NRTPs): foreign businesses that supply taxable goods or services occasionally in India. They apply at least five days before starting business, deposit estimated tax in advance, and appoint an authorised signatory resident in India with a PAN. A PAN is not mandatory for the NRTP itself, and the registration is valid for 90 days unless extended.
• Foreign online-service providers (OIDAR): overseas providers of online information and database services to unregistered Indian recipients register under a dedicated simplified route.
• Anyone who volunteers: many exporters register to claim refunds and credit.

How to register, step by step

1. Gather documents (list below) and confirm you hold a PAN.
2. Open the registration page on the GST portal and complete Part A with PAN, mobile number and email, which receive OTPs.
3. Complete Part B: business details, promoters or partners, authorised signatory, principal and additional places of business, goods and services (HSN or SAC codes), and bank details.
4. Complete Aadhaar authentication for the promoters or partners and the primary authorised signatory. If authentication is not finished within 15 days, the application is not generated.
5. Answer the Rule 14A question. The portal asks whether monthly output tax liability will stay at or below Rs 2.5 lakh. If so, registration may be granted automatically without officer involvement.
6. Track the ARN and respond to any clarification request.

A new company can also apply for GST inside the MCA's SPICe+ incorporation form (see setting up a business in India).

Documents you need

• PAN of the entity and of the promoters, partners or directors
• Proof of the principal place of business (lease, rent agreement or ownership paper) and photographs where requested
• Bank account proof and constitution documents (certificate of incorporation or LLP agreement)
• Authorisation letter or board resolution for the authorised signatory
• For an NRTP, a passport or tax identification number and the Indian signatory's PAN and mobile number

GST returns and due dates

The Quarterly Return and Monthly Payment (QRMP) scheme is open to taxpayers with aggregate turnover up to Rs 5 crore, who file quarterly but pay tax monthly through a challan. GSTR-1 reports HSN codes at four digits for turnover up to Rs 5 crore and at six digits above that. You can review matched purchase credits in GSTR-2B and the Invoice Management System before filing GSTR-3B. The portal computes a late fee on GSTR-9 filed after the due date.

What changed recently

After the 56th Council meeting in September 2025, most goods and services moved to a 5% merit rate or an 18% standard rate, with 40% for a few demerit items. On 8 October 2026 the 57th meeting recommended removing arrest provisions, raising the prosecution threshold from Rs 1 crore to Rs 5 crore, cutting the maximum general penalty from Rs 25,000 to Rs 10,000, automated refunds, and simpler registration for small e-commerce sellers. A proposed alternative way to amend liability and ITC in returns would start from the April 2027 return. Treat these as recommendations until they are notified.

Deadlines and consequences

If GSTR-1 is not filed by the due date, the system generates a return-defaulter notice, and the portal computes late fees on late returns. Interest on late tax is reported in Table 5.1 of GSTR-3B, and GSTN issued an advisory in April 2026 on re-computing that interest. Cancellation of registration for non-filing, and the new system-based cancellation recommended by the 57th Council, make regular filing worth the effort even for inactive entities.

A worked example

A Bengaluru software company with a March year-end bills its U.S. parent for services and pays the parent for management support. It files GSTR-3B each month by the 20th and GSTR-1 by the 11th. Payments to the foreign parent for services are generally an import of services on which the Indian company pays GST under reverse charge and may claim credit, so the entry appears in both liability and ITC. For FY 2025-26 it files GSTR-9 by 31 December 2026, and GSTR-9C if its turnover exceeds the notified limit.

Mistakes to avoid

• Assuming the Rs 40 lakh goods threshold applies in every state without checking
• Missing the five-day advance rule for an NRTP
• Filing GSTR-3B before reconciling GSTR-2B and the IMS
• Ignoring reverse-charge liability on payments to foreign group companies
• Treating a Council recommendation as law

How we can help

From Aurora, Illinois, we handle the U.S. sales tax side and the U.S. reporting for your Indian group, and we coordinate with your Indian Chartered Accountant so GST filings, invoices and transfer-pricing records agree with the U.S. books. We do not file Indian GST returns. See sales tax and GST compliance and bookkeeping and accounting. Browse the full India: Tax and Compliance section.

Frequently asked questions

General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.