Compulsory GST Registration explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Compulsory GST registration means you must register even when your turnover is below the normal threshold. Section 24 of the CGST Act lists the persons caught. Some of them are then excused by notifications issued under section 23(2), so the list on its own can mislead.
Section 24 overrides only the turnover threshold in section 22(1). It names persons such as those making inter-State taxable supplies, casual taxable persons, persons liable under reverse charge, TDS and TCS deductors, e-commerce operators and non-resident taxable persons. Many of them are relieved by notifications under section 23(2), for example inter-State suppliers of services below Rs. 20 lakh. The application goes in under section 25(1) within 30 days of becoming liable, or at least 5 days before starting business for a casual or non-resident taxable person.
What section 24 actually does
Section 24 begins with a non-obstante clause that is limited to section 22(1). It is not aimed at section 23. So even if you would enjoy the exemption threshold, you must register if you fall in one of the listed categories. Once registered, the Background Material points out, you lose the exemption threshold: all supplies become taxable as for any person generally liable to register.
The categories in section 24 are these:
- a person making any inter-State taxable supply;
- a casual taxable person making taxable supply;
- a person liable to pay tax under reverse charge;
- a person liable to pay tax under section 9(5) (e-commerce operator);
- a non-resident taxable person making taxable supply;
- a person required to deduct tax under section 51;
- a person supplying on behalf of another registered taxable person, as agent or otherwise;
- an Input Service Distributor;
- a person supplying through an e-commerce operator who collects tax under section 52;
- every e-commerce operator who collects tax under section 52;
- a person supplying online information and database access or retrieval services from outside India to a person in India, other than a registered person;
- a person supplying online money gaming from outside India to a person in India (added from 1 October 2023); and
- any other person or class notified on the Council's recommendation.
If you think you may be caught by the turnover test instead, read how aggregate turnover is calculated first. Our GST registration team can check which route applies to you before you apply.
Why the exemptions matter
Section 23(1) says a person dealing exclusively in non-taxable or wholly exempt supplies, and an agriculturist to the extent of produce from cultivation of land, is not liable to register. Section 23(2) separately lets the Government notify categories that may be exempted, even though they would otherwise be caught by section 22(1) or section 24.
| Section 24 category | Relief noted in the Background Material |
|---|---|
| Inter-State taxable supply | Inter-State supply of taxable services and handicraft goods is exempted unless turnover exceeds the threshold (Notification No. 10/2017-Integrated Tax as amended, and No. 3/2018-Integrated Tax) |
| Casual taxable person | Exempt for handicraft goods if aggregate turnover does not exceed Rs. 20 lakh (Notification No. 56/2018-Central Tax) |
| Reverse charge | No registration if all your supplies are under reverse charge, except the metal scrap supplier exception discussed under section 22 |
| Section 9(5) supplier | Not required to register if there is no other taxable turnover |
| Supplier via e-commerce operator | Services: exempt if turnover is up to Rs. 20 lakh (Notification No. 65/2017-Central Tax as amended); goods: exempt only below the section 22(1) threshold, on stated conditions |
| TDS deductor with nil taxable supplies | Relaxation under entries 1 and 14 of Notification No. 13/2017-Central Tax (Rate) |
| Agent | Liable only if the transaction attracts Schedule I (Circular No. 57/31/2018-GST) |
| Non-resident taxable person | No exemption |
The practical result: a freelancer exporting services only, with turnover below Rs. 20 lakh, need not register. An exporter of goods must register from the start, because export is an inter-State supply under section 7(5)(a) of the IGST Act and the exemption covers services, not goods.
Exports, and why small service exporters often register anyway
For export of goods, registration is mandatory whatever the value. The exporter can ship under LUT or bond without paying IGST and claim refund of unutilised credit, or pay IGST and claim refund of the tax paid.
A service exporter below the threshold need not register. The Background Material notes, though, that the GST paid on inward supplies then becomes part of the cost, and refund can be claimed only if registered, apart from certain cases in Circular No. 188/20/2022-GST. Exporters who want the refund route should look at GST registration for exporters.
A reverse charge example
Illustration: a hospital supplies only exempt health care services with a turnover of Rs. 10 crore. It imports a service worth Rs. 5 lakh on which it must pay tax under reverse charge.
- Section 22: no registration, because it has no taxable supply.
- Section 23: no registration, because it supplies only exempt services.
- Section 24: registration is required, because it is liable to pay tax under reverse charge.
The Background Material treats section 24 as the provision that applies here, since section 23(1) does not begin with a non-obstante clause. A related question is covered in agriculturists and RCM registration.
Timing and what happens if you miss it
Under section 25(1), you apply within 30 days from the date you become liable. A casual or non-resident taxable person applies at least 5 days before commencing business, and under section 27 pays an advance deposit of estimated tax. Under Rule 10(2), registration is effective from the date of liability if the application is filed within 30 days. Under Rule 10(3), if you apply later, registration is effective only from the date it is granted.
Where a liable person does not register, section 25(8) allows the proper officer to register him as prescribed. Rule 16 provides for temporary registration after a survey, enquiry or inspection.
Need help with compulsory registration?
If you are unsure whether RCM, TDS, inter-State sales or an e-commerce channel pulls you into registration, we can look at your transactions and file the application in the right State. Start with our GST registration service, or ask about registration for all entity types.
Key takeaways
- Section 24 overrides only section 22(1), the turnover threshold.
- Section 23(2) notifications exempt several categories, so read the notification before concluding.
- Export of goods needs registration from day one; small service exporters are exempt below Rs. 20 lakh.
- Apply within 30 days of liability; casual and non-resident taxable persons apply 5 days before starting.
- A late application means registration takes effect only from the grant date.
Read next
- Compulsory GST registration: the cases under section 24
- Deemed registration under section 26
- Distinct persons and multiple registrations on the same PAN
- Casual taxable person: registration and compliance
Disclaimer: Positions stated as on 30 September 2026, based on the CGST and IGST Acts and Rules as amended, the Finance Act 2026, and the ICAI Background Material on GST (14th Edition, July 2026). Verify current notifications before acting.