The Central Board of Indirect Taxes and Customs (CBIC) has issued a fresh directive making GST registration mandatory for certain categories of private limited companies, effective from June 1, 2025. This compliance measure is primarily aimed at enhancing tax transparency and curbing input tax credit fraud. According to the notification, all private companies with interstate supply of goods or services, or those involved in e-commerce transactions, must now obtain GST registration regardless of their turnover threshold, overriding earlier exemptions under the ₹20/40 lakh limit.

In particular, the CBIC has highlighted that companies operating in high-risk sectors such as logistics, IT services, digital advertising, and subcontracting, where layered invoicing and unregistered vendors are common, will come under stricter scrutiny. Additionally, startups availing government schemes, companies receiving foreign investment, or those claiming tax credits on capital purchases will also fall within the mandatory GST registration bracket. This move is expected to streamline input credit tracking and ensure better tax trail compliance for B2B and B2C transactions alike.

The government has advised all qualifying private companies to complete registration before the notified deadline to avoid penalties, denial of credits, and compliance blocks on e-invoicing platforms. Industry analysts see this as a necessary evolution in India’s indirect tax regime, aligning regulatory practices with global standards. CBIC has also promised a simplified registration and amendment process via the GSTN portal, and is expected to release updated FAQs and sectoral guidance notes to support the transition.