GST Registration Threshold - Minimum Turnover For GST

GST registration becomes mandatory in India once a business’s annual turnover crosses the prescribed threshold. These limits vary depending on whether you deal in goods, services, or operate in special category states. In this article, we explain the GST registration threshold limits in detail - covering the earlier limits, the revised limits, and the specific categories of taxpayers they apply to. 

GST Registration Threshold in India 

GST registration can be obtained voluntarily by any person or business, regardless of turnover. However, it becomes mandatory when the supply of goods or services exceeds the prescribed turnover limit. 

GST Registration Threshold for Service Providers

Any person or business providing services with an aggregate annual turnover of more than ₹20 lakhs must obtain GST registration. In special category states, this limit is ₹10 lakhs.

GST Registration Threshold for Goods Suppliers

According to Notification No. 10/2019, any business engaged exclusively in the supply of goods must register for GST if the annual turnover exceeds ₹40 lakhs.

To qualify for the ₹40 lakh limit, the following conditions must be met:

• The supplier must not provide any services.
• The supplier must not be making intra-state supplies in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, or Uttarakhand.
• The supplier must not deal in ice cream, pan masala, or tobacco.
• If these conditions are not met, GST registration is required when turnover exceeds ₹20 lakhs (₹10 lakhs in special category states). 

Special Category States under GST 

The following are classified as special category states for GST threshold purposes:

• Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.

Who is Compulsorily Required to Register for GST?

Under the GST law in India, certain categories of taxpayers must register for GST regardless of their turnover. This ensures compliance and proper tax collection.

• Casual Taxable Persons – Individuals or businesses supplying goods or services occasionally in a taxable territory where they have no fixed place of business.
• Non-Resident Taxable Persons – Foreign individuals or businesses supplying goods or services in India without a fixed business location.
• Inter-State Suppliers – Businesses making inter-state sales of goods or services.
• Persons Required to Deduct TDS/TCS – Entities liable to deduct Tax Deducted at Source (TDS) or collect Tax Collected at Source (TCS) under GST provisions.
• Persons Liable under Reverse Charge Mechanism – Individuals or entities required to pay GST directly to the government instead of the supplier.
• Input Service Distributors (ISD) – Offices of a business that receive tax invoices for services and distribute the tax credit to their branches.
• E-Commerce Operators – Platforms that facilitate the supply of goods or services by other suppliers through their marketplace.
• Suppliers Selling via E-Commerce Platforms – Individuals or businesses supplying goods or services through online marketplaces (liable for TCS collection).
• Agents or Principals – Persons making taxable supplies on behalf of another person, whether as an agent or principal.
• Overseas Service Providers – Foreign companies providing online information, database access, or other electronic services to unregistered customers in India.

Conclusion

Has your business exceeded the GST registration turnover limit? Now is the time to secure your registration. IndiaFilings can assist you in obtaining GST registration quickly, accurately, and with complete compliance.

Get Started!