No, GST registration is not mandatory for everyone. It is only mandatory for businesses exceeding specific annual turnover thresholds—typically ₹40 lakhs for goods and ₹20 lakhs for services (lower in special category states). Registration is compulsory, regardless of turnover, for specific cases like inter-state suppliers, e-commerce sellers, and involuntary reverse charge cases.
For Goods Suppliers: Businesses involved in the supply of goods must register for GST if their annual turnover exceeds Rs. 40 lakhs. For Service Providers: For those providing services, the registration threshold is Rs. 20 lakhs in annual turnover.
If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest.
You're considered a small supplier as long as your gross revenue remains less than $30,000 over any 4 consecutive calendar quarters. This means you're not required to register for GST/HST.
GSTIN is mandatory for: Businesses with an annual turnover exceeding the prescribed threshold (currently ₹40 lakh for most states and ₹10 lakh for special category states). Entities engaged in inter-state supply of goods or services. E-commerce operators and aggregators.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
Heavy Penalties and Fines
If you are liable to register for GST but fail to do so, you are considered in violation of GST law. As per the GST Act: A penalty of ₹10,000 or 10% of the tax due, whichever is higher, is applicable. If tax evasion is found to be intentional, the penalty can go up to 100% of the tax due.
Small businesses in Australia who turn over less than $75,000 per year don't have to pay GST. If you're a registered not-for-profit, you also don't have to pay GST as long as your turnover is less than $150,000. If you run a taxi service or are an uber driver, for example, you must always pay GST, regardless of income.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
You must register for GST if you:
You have to start charging GST/HST on the supply that made you exceed $30,000. You exceed the $30,000 threshold 1 over the previous four (or fewer) consecutive calendar quarters (but not in a single calendar quarter).
The main benefit of being GST registered is that you can claim back GST on your business expenses. If you pay more in GST when buying supplies for your business than you charge your clients, you are eligible for a GST refund.
According to the current GST regulations, businesses that have an annual turnover below the prescribed threshold can issue invoices without adding GST.
Individuals making Nil Rated and Exempt supplies (e.g., fresh milk) are also exempt. Those engaged in activities not covered under the supply of goods and services (e.g., petroleum products) do not require GST registration. Individuals supplying goods under reverse charge mechanisms do not need to register for GST.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
To qualify for the GST/HST credit, your adjusted net family income must be below a certain threshold, which for the 2024 tax year ranges from $56,181 to $74,201, depending on your marital status and how many children you have.
Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Businesses with annual revenues below these limits are not mandated to register for GST; however, they may opt to do so voluntarily.
But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.
You may qualify for the GST payment in 2026 if you meet the following criteria: You are a resident of Canada for tax purposes. You are 19 years or older, or under 19 with a spouse/common-law partner or a child. You have filed your income tax return.
Certain government services and small businesses below the GST registration threshold also qualify for exemption. It's important to note that exempt supplies differ from non-GST supplies. Exempt supplies, like healthcare or education services, are part of the GST system but are not taxed.
You must register for GST if you reach the $75,000 turnover threshold or if it looks likely that you will exceed it. Once you've passed the turnover threshold, you must register within 21 days. Taxi drivers and ride-sharing drivers need to register for and charge GST no matter what their turnover is.
If a person fails to register for GST within the prescribed time limit, he/she is liable to pay a penalty. The penalty for late registration of GST is 10% of the tax due or Rs. 10,000, whichever is higher.
The registration granted under GST can be cancelled for specified reasons. The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of death of registered person, the legal heirs can apply for cancellation.
Liability to pay tax arises when the taxable person crosses the turnover threshold of Rs. 20 lakhs (Rs. 10 lakhs for North Eastern & Special Category States) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit.
One significant advantage of GST registration is the ability to claim Input Tax Credits (ITCs). When you purchase goods or services for your business, the GST component can be claimed back from the tax authority. This reduces the overall cost of your business expenses and can help improve your cash flow.