GST

Voluntary GST registration below the threshold

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You can register voluntarily under Sec 25(3) even below the threshold. Once registered, all GST rules apply to you: charging tax, filing returns and paying on time.

Provisions

Sec 25(3), CGST Act 2017; Sec 22(1), CGST Act 2017

Analysis

Voluntary registration helps B2B suppliers, because the client gets credit of the GST you charge, so your price is effectively the same to them. The cost is compliance: monthly or quarterly GSTR-1 and GSTR-3B, even nil ones, with late fees if missed. For a ₹10 lakh business selling to consumers who cannot claim credit, registering often just adds 18 percent to the price. Weigh who your buyers are before deciding.

Close

  1. List your top clients and check whether they are GST registered businesses.
  2. Estimate the compliance effort and cost of filing returns every period.
  3. If most buyers are businesses, apply in REG-01 and choose voluntary registration.
  4. Set up a return calendar from the first month.

Voluntary registrants cannot simply stop filing; cancellation must be applied for and returns filed till then.

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