Goods and Services Tax (GST) is a unified tax system that applies to businesses in India. It replaces multiple indirect taxes and ensures a smooth tax structure. Every business that supplies goods or services and crosses a certain turnover limit must register for GST.
GST registration is mandatory for businesses with an annual turnover exceeding ₹40 lakh (for goods) and ₹20 lakh (for services). However, in some cases, registration is necessary even if the turnover is lower, such as for e-commerce sellers or inter-state suppliers. Getting registered allows businesses to legally collect GST from customers and claim input tax credits.