Do I need to be GST registered to apply?

Yes, having a valid GST registration is mandatory when applying for a GST business loan.

1. Businesses above a certain annual turnover threshold need to be registered under GST as per regulations. Being a GST-registered entity is a key requirement for applying for a GST business loan from most lending institutions.
2. Financial institutions will request for your GST registration certificate and recent GST return filings as part of the loan application documents. This allows them to verify that you are part of the formal economy and compliant with indirect tax laws.
3. Your GST return filings also provide insights into business revenue, taxes paid, input credits availed, etc. Though the lender may not rely solely on GST returns, they do serve as a useful data point to assess your business's finances and continuity.
4. Newly registered entities may need to provide additional business documents for evaluation by loan providers in addition to the GST registration. Maintaining an active GST registration and disciplined filing of returns is advisable throughout the loan tenure.