GST registration is a legal requirement for many businesses — and, for a small business that wants credit, one of the most useful records it can have. Here's who needs it and why it matters when you apply for a loan.
Turnover thresholds
A business must register once its aggregate annual turnover crosses the threshold:
| Business supplies | Most states | Special category states |
|---|---|---|
| Goods only | ₹40 lakh | ₹20 lakh (varies by state) |
| Services, or goods and services | ₹20 lakh | ₹10 lakh |
The goods threshold of ₹40 lakh is an option each state chose, and some special category states kept lower limits — check your state's rule with a tax professional.
Who must register regardless of turnover
Some businesses need GST registration even below the threshold, including:
- Businesses making inter-state supplies of goods (with limited exceptions)
- E-commerce sellers supplying through marketplaces that collect tax at source (with certain relaxations for small suppliers of services)
- Casual taxable persons and non-resident taxable persons
- Those required to pay tax under reverse charge
- Input service distributors and agents supplying on behalf of others
Rules change and have exceptions, so confirm your case with a professional or the official GST portal.
How to register
- Apply online on the official GST portal (gst.gov.in) — registration there is free.
- Keep PAN, Aadhaar, proof of business address, bank details and photographs ready.
- Complete Aadhaar authentication when asked.
- Once approved, you get a 15-character GSTIN.
Why GST helps you get a business loan
- Proof of turnover — GST returns show sales month by month, verified by a government system.
- Business vintage — the registration date and filing history show how long you've been running.
- Consistency checks — lenders compare GST turnover with bank inflows; matching numbers build trust.
- Access to more lenders and products — many business loans and MSME schemes expect GST where it applies.
Some lenders do consider businesses that are below the threshold and not registered, based on bank statements and other proof — see business loan without GST.
Tips
- File returns on time, even nil returns. Gaps and late filings show up.
- Keep GST turnover and bank credits aligned.
- Get a free Udyam registration too.
Work out tax amounts quickly with the GST calculator, and when you're ready, apply for a business loan.
This guide is general information, not financial advice. Interest rates, fees, eligibility and other terms are set by each lender and can change; the figures in examples are illustrative only. Oxon Fintech is a loan facilitation platform, not a lender — loans are sanctioned and disbursed by our lending partners.