GST Registration for MSMEs in 2026: Thresholds, Documents and Timelines

A small business must register for GST when its aggregate turnover crosses ₹40 lakh if it supplies goods only, or ₹20 lakh if it supplies services or both, in Haryana, Punjab, Rajasthan, Uttar Pradesh and most other States — or at once, whatever the turnover, if it makes inter-State supplies of goods, sells as a casual taxable person, pays tax under reverse charge or falls in another compulsory case. Registration is free on gst.gov.in in Form REG-01. Approval takes up to seven working days with Aadhaar authentication, and only three working days for small B2B suppliers who choose Rule 14A.

Sources checked: 20 October 2026

Facts checked on 20 October 2026 against the GST Council's registration flyer, Notification 10/2019-Central Tax, GST portal advisories 583 and 635, and section 24 and rule 9 on the CBIC tax information portal.

Key facts

Item	GST registration, October 2026
Goods only (most States)	₹40 lakh aggregate turnover
Services or goods and services (most States)	₹20 lakh
Lower limits	Goods only ₹20 lakh in 10 special-category States; services ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura
Compulsory regardless of turnover	Inter-State supply of goods, casual taxable persons, reverse-charge payers, e-commerce operators and others under section 24
Application	Form REG-01 on gst.gov.in, with Aadhaar authentication
Approval	7 working days; up to 30 days with physical verification; otherwise deemed approved
Rule 14A route	Output tax to registered buyers up to ₹2.5 lakh a month → 3 working days
Bank account	Within 30 days or before the first GSTR-1/IFF, whichever is earlier

What is the GST registration limit?

The limit depends on what you supply and where:

Type of supply	Most States (incl. Haryana, Punjab, Rajasthan, UP)	Special-category exceptions
Goods only	₹40 lakh	₹20 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand
Services, or goods and services	₹20 lakh	₹10 lakh in Manipur, Mizoram, Nagaland and Tripura

"Turnover" means aggregate turnover — all taxable, exempt and export supplies of all your businesses under one PAN across India, excluding GST itself and inward supplies on which you pay reverse charge.

The ₹40 lakh limit for goods is not available to suppliers of ice cream, pan masala or tobacco, to anyone required to register compulsorily, or to someone who registers voluntarily (Notification 10/2019-Central Tax).

When is GST registration compulsory?

Section 24 of the CGST Act lists the cases where turnover does not matter. Those that catch MSMEs most often:

• Inter-State supply of goods (services supplied inter-State still get the ₹20 lakh threshold).
• Casual taxable persons — selling at an exhibition or fair in another State.
• Persons liable to pay tax under reverse charge.
• E-commerce operators. Sellers through them: goods sellers below the threshold may sell within one State with an enrolment number instead (Notification 34/2023-Central Tax), and service sellers below ₹20 lakh are exempt.
• Input Service Distributors, agents supplying on behalf of others, and persons required to deduct TDS or collect TCS under GST.

Below the threshold you may still register voluntarily — B2B customers want a tax invoice, subsidy and tender applications often ask for a GSTIN, and banks use GST returns as evidence of turnover. Once registered you must file returns even with nil turnover.

What documents are needed for REG-01?

• PAN of the business (or proprietor) and Aadhaar of the proprietor, partners or directors.
• Proof of the principal place of business, such as an ownership document or a rent or lease agreement — the portal lists what it accepts, and the document must match the address on the application exactly.
• Bank account details (can be added after registration, see below).
• Constitution proof — partnership deed, LLP agreement or certificate of incorporation.
• Photographs of promoters and the authorised signatory, and an authorisation letter or board resolution for the signatory.

How long does GST approval take?

1. Submit REG-01 with Aadhaar authentication. Applicants flagged on risk parameters are asked for biometric Aadhaar authentication and document verification at a GST Suvidha Kendra (rule 8(4A)).
2. If the application is in order, the officer must approve within seven working days; where physical verification of premises is needed, within thirty days. If the officer does not act in time, the registration is deemed approved.
3. If the officer raises a query in REG-03, reply in REG-04 within seven working days; no reply, or an unsatisfactory one, leads to rejection in REG-05.
4. On approval you receive the REG-06 certificate with your GSTIN.

Rule 14A (from 1 November 2025): an applicant whose output tax on supplies to registered persons will not exceed ₹2.5 lakh a month can opt for registration within three working days of Aadhaar authentication. Only one such registration is allowed per PAN in each State.

After registration

• Display the certificate at your premises and the GSTIN on your signboard.
• Add the bank account within 30 days or before filing GSTR-1 or IFF, whichever is earlier (rule 10A), or the registration can be suspended automatically.
• Issue tax invoices in the prescribed format; above ₹5 crore of turnover, e-invoicing applies.
• Choose your return cycle: monthly GSTR-1 and GSTR-3B, or QRMP (quarterly returns, monthly payments) if turnover is up to ₹5 crore. The compliance calendar shows the dates.
• If you opted for composition, file CMP-08 quarterly and GSTR-4 annually.
• Check that the GSTIN you were given is in the right format with the GSTIN check tool.

Common mistakes

• Registering in the wrong State when the business has premises in two States (each State needs its own registration).
• Choosing composition and then making an inter-State sale.
• Missing the REG-03 reply deadline.
• Not filing nil returns after voluntary registration, which leads to late fees and eventually cancellation — see GST notices explained.

Also registering as an MSME? See Udyam registration. Our GST services cover registration, returns and replies to queries — ask our expert team.