Who Needs GST Registration — and when?

One of the most common questions every new entrepreneur asks is:

“Do I need to register for GST?”

The answer lies in three important sections of the CGST Act, 2017 — Sections 22, 23, and 24. These are the frameworks that help every business, big or small, know where they stand.

Section 22: Mandatory Registration Based on Turnover

This section applies to most businesses. It states that every supplier shall be liable to register under GST in the state or union territory from where they make taxable supply, if their aggregate turnover exceeds the prescribed threshold.

Threshold Limits (as of 2024-25):

Section 23: Exemption from GST Registration

This section offers relief for those who do not need GST registration. It’s a reminder that not all income needs to be taxed — especially when it supports livelihoods and sustains simplicity.

You’re exempt if you are:

• Engaged exclusively in exempt or non-taxable supplies (e.g., unbranded food, milk, education).
• An agriculturist selling produce from land cultivation.
• An employee earning salary — salary is not considered “supply” under GST.
• A hobby seller or small earner dealing in fully exempt goods.

But if you deal with both taxable and exempt supplies, and your turnover exceeds the threshold — you must register.

Example: Seema runs a home-based unit selling only unbranded organic vegetables. Her income is ₹25 lakhs/year. Since her supplies are fully exempt, she doesn’t need GST registration under Section 23.

Section 24: Compulsory Registration — No Threshold Exemption

This is where GST law becomes strict. Section 24 overrides Section 22. It says that some businesses must register, even if they earn just ₹1.

Compulsory Registration Applies To:

Category	Description
Inter-state suppliers*	Supplying goods/services outside your home state
E-commerce sellers	Selling via Amazon, Flipkart, Meesho, etc.
Casual taxable persons*	Temporary setups (e.g., exhibitions, fairs)
Non-resident Taxable persons	Foreigners supplying in India
TDS/TCS deductors	Government depts., e-commerce platforms
Input Service Distributors	Corporate branches distributing credits
Agents of suppliers	Acting on behalf of another taxable person
RCM recipient	Compulsory registration

*Exception : Person who supplies handicraft goods and hand made goods.

Example: Gowri sells handmade jewellery through Flipkart. Her annual turnover is ₹5 lakhs. But because she sells via an e-commerce platform, she must register for GST under Section 24.

Summary: Who Needs to Register?

Feature	Section 22	Section 23(Override)	Section 24
Type	Regular Threshold -Based	Exempt Categories	Compulsory
Turnover Criteria	Yes (₹20L/₹40L)	Not applicable	No
When to Register	After crossing limit	Not required	Mandatory, regardless
Examples	Local shop, freelancer	Unbranded food seller	Amazon seller, interstate trader

Consequences of Not Registering (When Required)

• Penalty of ₹10,000 or amount of tax evaded — whichever is higher
• See 63: Assessment of unregistered persons
• Can’t claim Input Tax Credit (ITC)
• Risk of legal notices, fines, and business disruptions

How TAX360 Can Help

At TAX360, we make it simpler for individuals, freelancers, and businesses to do the right thing — without stress.

We help you:

• Know if you need GST registration
• Apply and get your GSTIN
• File monthly/quarterly GSTRs on time
• Stay compliant, audit-ready, and worry-free
• Manage e-commerce & inter-state GST seamlessly

Start with Confidence

Visit TAX360 to begin your registration. Book a free consultation and let our experts guide you.

Because the best businesses grow with clarity, not confusion. And the strongest foundations are built on compliance done right.