Eligibility Criteria for GST Registration:- Having a valid PAN (Permanent Account Number). Turnover above a certain threshold limited of Rs.20 Lakhs. Turnover below Rs.20 Lakhs, may choose to register for GST voluntarily. Being engaged in a taxable supply of goods or services. Business engaged in the supply of goods or services across state or national borders. Business that are required to pay GST on a reverse charge basis (like transportation of goods, legal services). Business seeking to claim input tax credits on their purchase of goods or services.     Benefits for SMEs of GST Registration:-  Easy to start business. To establish the business as a legal entity in the eyes of the law. To claim input tax credit (ITC) and offset this against the GST collected on sales. To easily trace expenses and purchases. Helps to easily trace & manage our turnover. To take benefits of ITC on fixed assets (like computer and printers, furnitures etc.) Competitive advantage in market, as many customers prefer to deal with registered suppliers to avail ITC benefits. Credibility and trustworthiness of a business. Legal protection under the GST Law. Provides benefits for exporters, including a simplified and transparent tax structure. Avail GST start-ups Avail GST refunds schemes. Prerequisites for participating in government tenders and contracts.   GST Registration threshold limit The threshold limit is Rs.40 lacs or higher for the trading & manufacturing sector. The service sector has a threshold of Rs.20 lacs or higher.   Penalty for not registering under GST  A penalty of Rs.10, 000 or 10% of the tax due, whichever is higher, for not registering despite being liable to do so.  A penalty of Rs.10, 000 or the tax amount, whichever is higher, for collecting GST but not depositing it to the government within three months.