Article · 18 min read

GST Registration: Thresholds, Documents, Process, and Penalties

ClearTax Free Beginner India

GST is the single compliance item a solo founder most often gets wrong, either registering too late or not knowing the threshold differs for goods (40 lakh) versus services (20 lakh). ClearTax is the canonical Indian reference on this: it walks the exact portal steps (TRN, Aadhaar authentication, document upload), the documents you need, and the penalty math for skipping it (minimum 10,000 rupees, up to 100% of tax evaded), so you register at the right moment and not a filing cycle late.

• The threshold is not one number: roughly 40 lakh turnover for goods and 20 lakh for services (lower in special-category states), computed on aggregate all-India turnover under one PAN
• You often need GST anyway to invoice business clients who want to claim input credit, regardless of your turnover
• Skipping registration when required carries a penalty of at least 10,000 rupees or the tax evaded, so treat the threshold as a hard trigger, not a suggestion