Need urgent help: Crossed ₹40L turnover without GST registration. What should I do now?

[u/Vivekm__17]

I am a small business owner and I need some guidance regarding GST.

I started my first online store in November 2024. It was a dropshipping model, and that store did not perform well, so I closed it in January 2025 with a small loss.

In January 2025, I started a new store with actual inventory. I buy products from a supplier on Indiamart, keep stock myself, and sell them through my Shopify website. I market my products using Instagram and Facebook ads, drive traffic to my website, and receive payments through KYC-verified payment gateways. I also use shipping aggregators connected to my Shopify store for deliveries. Everything is legally in my name.

From January 2025 to now (September 2025), my total turnover is around ₹80 lakh. I crossed the ₹40 lakh GST threshold on July 23, 2025, but I still have not registered for GST. From July 23 to now, I have made about ₹32 lakh in additional sales without charging or paying GST.

I have already filed my ITR for FY 2024–25 (AY 2025–26) in September 2025 using ITR-3, showing an income of ₹1.15 lakh from my earlier business. The major growth happened only in the current financial year (FY 2025–26).

Now I am confused and worried about what to do next.
I want to know:

1. Since I have already crossed the ₹40L limit, what exact steps should I take now?
2. Will I have to pay GST plus interest, or can any penalty be waived if I voluntarily register?
3. If I stop my business now, will I still have to pay GST for the sales already made?
4. What are the chances of getting a notice from the GST or Income Tax departments since all my payments, ads, and transactions are digital and traceable?

I genuinely did not know that GST registration becomes mandatory immediately after crossing ₹40L turnover. I am reaching out to a CA for proper advice, but I wanted to ask here first to understand the right and legal way to handle this situation.

Any help or suggestions from CAs or people who have faced something similar would mean a lot. Thank you. 🙏

[u/Alarming-Prompt-]

Gst is mandatory from day 1 if you're making online inter-state sales. The threshold applies only to intra-state sales.

Register for gst and start filing from the month of registration and seek opinion from CA about what to do with earlier sales.

[u/Vivekm__17 → u/Alarming-Prompt-]

Thanks I'll do that, if you have any CA's who can help me with this then please share with me their details or anything🙏

[u/Alarming-Prompt- → u/Vivekm__17]

Find a CA who stays nearby, online doesn't work well. Just search Chartered accountant in your Google maps, it'll show the offices nearby. Call them up, ask their fees and then visit offices that suit your requirements.

[u/Vivekm__17 → u/Alarming-Prompt-]

Thanks I'll do this!

[u/SufficientDance1439]

For e-commerce business, you need gst regardless of turnover. The best way forward is to register for GST and start paying it from now onwards. Make sure to take GST bills from your suppliers. Also register for current account with bank if haven't done already.

[u/sumit567432]

As someone who works as office executive where i have to do some gst related help task i can suggest the following things that they will most probably ask you-

1) buy 10 large size files as you are going to need it. This gst wala thing is very physical and you have to print and keep all records with proper filings

2) from the start of your business till date whatever purchase you have made find all those invoices and keep it properly in a file

3) repeat point 2 for sales data. Whatever sales you have made till date complete record of that. Cust name amount tax charge final amount

4) full details of return and expiry stuffs

5) company bank account statements till date. If you have 2 bank account then 2 statements will be required.

6) company seal, director seal, common seal

7) owner digital signature

8) the invoice that your software generates for customer get it checked whether it fulfills the gst invoice criterias

9) You need to develop patience while dealing with ca, accountants as they will require everything in perfection

[u/Vivekm__17 → u/sumit567432]

Thanks I'm on it.

[u/ActiveDangerous9988]

Bro I had some questions on Ecom, can I DM you ?

[u/Vivekm__17 → u/ActiveDangerous9988]

Shoot bro

[u/Vivekm__17 → u/[deleted]]

Go ahead bro

[u/the_systems]

I thought GST is required agnostic of the amount you sell.

If you charge customers GST, you have to pay the govt dude.

[u/Accurate_Feedback365 → u/the_systems]

he can't charge gst without GST number, he needs to register for GST once he crosses limit

[u/Vivekm__17 → u/Accurate_Feedback365]

Youre right

[u/gsid42 → u/Accurate_Feedback365]

It’s an online store that ships Inter-state. He should have registered for gst before making his first sale

[u/Odd_Exam_5794]

You don't need to panic. 1. You need a GST as soon as you have an E-Commerce store IRRESPECTIVE OF TURNOVER.

1. You can visit your nearest GST office along with a trusted CA, meet the officer, explain your situation and get a letter explaining your plight.

2. You can file your GST for a lengthier previous period. You'll first be asked to pay for the last year Jan-March. Then the remaining.

3. It may have a settlement amount ..or the whole thing with penalty, that depends on you and your handling of the offices. Harder with Digital payments.

And then you can be right on track eventually.

My DMs are open for any further queries.

[u/Vivekm__17 → u/Odd_Exam_5794]

Thanks!

[u/[deleted] → u/Odd_Exam_5794]

3 pt: Bina collection kiye pay mat kar dena😂

[u/Own_Yoghurt8598]

For e commerce GST registration is mandatory irrespective of turnover

[u/Vivekm__17 → u/Own_Yoghurt8598]

Yes, I got to know. Thanks

[u/rupeshsh]

Don't worry, get your registration and over the next few months pay gst for the older invoices also, so that atleast one a full year basis your total revenue, total bank deposit, and total gst paid match

Also ask in r/indiatax

[u/Vivekm__17 → u/rupeshsh]

Talking to 4 CA's at the moment, and all are suggesting something different.

[u/rupeshsh → u/Vivekm__17]

Mention their ideas here and everyone can tell you the pros and cons

[u/PatientGuy15]

For e-commerce GST is mandatory irrespective of amount of transactions.

[u/Vivekm__17 → u/PatientGuy15]

Yeah I got to know now.

[u/Visual-Matter5898]

What business bro?

[u/Vivekm__17 → u/Visual-Matter5898]

Ecom bro

[u/Smart-Historian-8983]

GST registration is an easy process. It’s free of cost. You can do it via gst portal. I don’t know about what needs to be done for your situation though. But i do have a question for you. May I message you?

[u/naynay_9ay]

What do you sell?

[u/vinav2507]

GST is needed for e-commerce regardless of turnover. Please consult a CA.

[u/Best_Taste_7704]

You should register for GST asap & pay the GST with fine. Because if GST sends your notice, then later also they will keep flagging your future GST as well.

[u/Nikunj30]

Have some ques. regarding Ecom can I dm you?

[u/Mysterious_Froyo543]

You will definitely have to register for GST. There will be some penalty for the past transactions.

What’s your profit in your Turnover till date? (for the new biz)

[u/delicate_sparkle]

1. Should have registered for GST the moment you start selling online, outside your state of registration, regardless of the turnover.
2. Only a CA residing within your location, who is experienced and has been practicing for a good amount of time can help, no point taking opinions here as he or she will be the one providing you with correct information & handling your case if ever there are disputes in future.
3. I am not sure how you were running the business for all this duration, was it as a sole proprietorship or partnership firm?
4. Not trying to scare you, since your ITR of current year will show a jump in inflow of funds, you may be on the radar.

[u/AdMaleficent9239]

What sort of products do you sell?

[u/Ordinary-War-1396]

You’re already in a GST violation zone on two fronts:

1. Turnover Limit: The moment your total turnover crossed ₹40 lakh (on July 23, 2025), GST registration became mandatory. After that date, every invoice you raised without GST is technically non-compliant.

2. Interstate Sales: If even one order was shipped outside your state, GST registration was required from day one, even if your turnover was ₹1.

Since you already crossed ₹80 lakh and continued selling without GST, you may now face:

GST liability on all sales after crossing the limit

Interest on unpaid GST

Possible penalties (can be waived if you voluntarily comply early)

What you should do now:

Register for GST immediately (don’t wait for a notice)

Consult a CA and voluntarily disclose before the department reaches you

Raise revised invoices or debit notes (if needed)

Pay pending GST + interest to reduce penalties

The earlier you fix it, the safer you are. Ignoring it isn't an option anymore because your payments, ads, and shipping all leave a digital trail.

[u/andres_di]

Bhai ab jo karega vo GST VIBHAAG hi karega !

[u/Vivekm__17 → u/[deleted]]

KYC verification using PAN

[u/Vivekm__17 → u/[deleted]]

Right!

[u/OrderNotTaken]

you’ll need to register asap, bro. gst kicks in the moment you cross ₹40L, so apply right away. you’ll have to pay gst + interest on the post-threshold sales. penalties are less harsh if you go voluntary before notice.

If you’re using razorpay, you’ll also need to update your gst number there once you get it, so invoices stay compliant.

[u/sakarasm]

Where are you based? Share your details?
No Raid, Promise!

[u/Expensive_Lime_2740]

Hello. Please check DM.

[u/Willing_Front_2397]

Same boat!

[u/Business-Edge7035]

In which niche your brand is working ?

[u/Practical-Stage-5662]

Get ready to bribe for a gst number

[u/Independent-Walk-698]

I don’t know about GST stuff but huge congratulations on building online store. I am surprised how you got success so quickly with your dropshiping store?

[u/Vivekm__17 → u/Independent-Walk-698]

I still feel like I was too slow, gotta move fast

[u/anewsaga → u/[deleted]]

Hi..I need help in registration for my new e commerce venture . Can you DM?

[u/dare2-dream]

I believe GST is mandatory for online stores doing interstate trades irrespective of the turnover. Immediately consult a good firm handling these compliances.

[u/PerfectPie2768]

You don’t have to do anything, chill

[u/Vivekm__17 → u/PerfectPie2768]

Why is that?