Hey,
Is it mandatory to apply for GST while incorporating a company?
Hey @HarishMehta
A company can apply for GST registration while incorporation through the form AGILE PRO. It is not mandatory to apply for GST registration at the time of incorporation.
Hope this helps!
No, you don’t have to apply for GST registration when you incorporate a company. Incorporating a company and obtaining GST registration are two different steps. You need to apply for GST only if your business meets certain conditions prescribed in GST law, such as:
- Your annual turnover is over the set limit (typically ₹40 lakh for goods and ₹20 lakh for services in most states).
- You are making taxable supplies between states.
- You are selling through an e-commerce platform.
- Your business is in a category where GST registration is required, regardless of turnover.
Many companies decide to apply for GST right after incorporation if they expect to exceed the threshold soon or need GST registration for specific business reasons, such as issuing GST invoices or calming input tax credits, so, simply incorporating does not required GST registration; it depends on the nature and scale of your business activities.