GST registration

Yes, you are required to register for GST because you crossed the ₹20 lakh threshold in the previous financial year. Registration is mandatory once the limit is breached, regardless of your current year's turnover. You must register immediately and settle the tax liability, including interest, for the period you operated without registration.

You are right to be concerned. Once turnover crosses Rs 20 lakhs in a financial year, GST registration becomes mandatory from the date the threshold was breached, not from the next year. The lower turnover this year does not change that.

Practical steps now:

1. Calculate the tax liability from the date you crossed Rs 20 lakhs in the previous year to the present. This is the GST you should have collected and remitted but did not.

2. Register voluntarily on the GST portal. In the application, use the date you crossed the threshold as the effective date of registration, not today.

3. Pay the outstanding tax plus interest at 18% per annum under Section 50 of the GST Act for the delayed period.

4. File all pending GSTR-1 and GSTR-3B returns for each month since the threshold was crossed.

Delaying further increases the interest burden. If there is any possibility of a GST notice (common for unregistered businesses with significant bank credits), having registration and filed returns in place puts you in a much stronger position to respond.

This [GST registration guide for 2026](https://taxgarden.in/blog/gst-registration-process-india-2026) has the step-by-step portal process and eligibility threshold details.