What changes were made to GST registration thresholds in the 32nd GST Council Meeting?

In the 32nd GST Council Meeting held on 10th January 2019, the Council revised the GST registration threshold limits to ease the compliance burden for MSMEs. The revised limits were later notified by the Central Board of Indirect Taxes and Customs (CBIC). This change aimed to simplify GST compliance for small businesses and promote ease of doing business in India.

How to Calculate GST Turnover Threshold?

To determine the GST registration threshold, you must assess the 'turnover for GST registration', which is the aggregate turnover of your business. It refers to the minimum turnover of the business you are required to register for GST. These are the factors you should consider when calculating the turnover limit for GST registration. Taxable Sales Value: This refers to the total value of sales on which GST is applicable. You'll need to consider the value of all taxable goods and services you sell when calculating the GST registration turnover limit. Exempt Sales Value: Certain goods and services are exempt from GST. Even though these sales don't attract GST, you still need to consider their value when evaluating your turnover for registration purposes. Export of Goods and Services: This is the revenue your business generates from international sales. It is important as it is converted to local currencies for accounting, taxation, and compliance purposes. Interstate Supplies: This refers to the sale of goods or services to customers in other states of India and the IGST (Integrated Goods and Services Tax) rates for it. .

What are the latest GST Composition Scheme threshold limits?

From 1st April 2019, the annual turnover threshold for opting into the GST Composition Scheme was increased to ₹1.5 crore. Taxpayers registered under this scheme are now required to pay tax quarterly and file returns annually, making compliance easier. For North-Eastern states and Uttarakhand, the threshold limit remains ₹75 lakh. The same limit also applies to restaurants that do not serve alcoholic beverages. Additionally, the Composition Scheme was extended to service providers. Under the new provision, a fixed tax rate of 6% (3% CGST + 3% SGST) applies. This scheme is available to independent service providers and mixed suppliers of goods and services with an annual turnover of up to ₹50 lakh in the preceding financial year.

What is the GST registration turnover threshold for businesses dealing with both goods and services?

goods and services is Rs. 20 lakhs and above. However, the threshold for businesses dealing only with goods is Rs. 40 lakhs. For those exclusively providing services, the threshold is Rs. 20 lakhs. The threshold limit is crucial as it determines whether a business needs to register for GST. Registering for GST is essential to complying with GST rules and regulations and avoiding penalties. If you wish to verify the GST registration status of your vendors or buyers, you can use our GST Search Tool—simply enter the GSTIN to get instant results.

RENU SURESH

Expert

Published on: Jun 24, 2026

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.

GST Registration Threshold

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

In conclusion, the minimum GST registration limit for mandatory GST registration in India is Rs. 40 lakh for most businesses, with a lower threshold limit for GST registration of Rs. 10 lakh applicable in special category states. Businesses below this GST registration turnover limit can still register voluntarily to claim tax benefits. Remember to consider all aspects of your turnover, including taxable and exempt sales, exports, and interstate supplies, when evaluating the turnover limit for GST registration.

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.

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Frequently Asked Questions

Common questions about GST Registration Threshold in India: Turnover Limits Explained.

The minimum turnover threshold for mandatory GST registration in India is Rs. 40 lakhs for most businesses dealing with the supply of goods. For businesses providing services, the threshold is Rs. 20 lakhs. However, for special category states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim, the threshold is lower at Rs. 20 lakhs for goods and Rs. 10 lakhs for services.

Yes, businesses with a turnover below the GST registration threshold can still register for GST voluntarily. Voluntary GST registration can be beneficial as it allows businesses to claim input tax credit and avail other GST benefits, even if their turnover is below the mandatory registration limit.

The turnover for GST registration is calculated by considering the aggregate turnover of the business, which includes the value of taxable sales, exempt sales, exports, and interstate supplies. It is essential to consider all these factors to determine if the business has exceeded the GST registration turnover limit.

No, the GST registration threshold is different for businesses dealing with both goods and services. For such businesses, the threshold is Rs. 20 lakhs, irrespective of whether they supply goods or services or both.

If a business exceeds the GST registration turnover limit, it becomes mandatory for the business to register for GST. Failure to register for GST when the turnover exceeds the threshold can lead to penalties and legal consequences.

According to the article, the minimum GST registration limit in India is likely to remain the same (Rs. 40 lakhs for goods and Rs. 20 lakhs for services) in 2023. This is expected to provide relief to small businesses and enable them to avail the benefits of GST.

Yes, certain activities are exempted from GST registration, such as supplying goods or services that are not taxable, supplying goods or services by unregistered persons to registered individuals, and providing goods or services through an unregistered e-commerce operator.

GST registration offers several benefits to businesses, including the ability to claim input tax credit, seamless movement of goods across states, and the elimination of cascading taxes. It also enhances the credibility and compliance of the business.

Yes, GST is applicable to exports of goods and services. However, exports are considered as zero-rated supplies, which means that the exporter can claim a refund of the input tax credit paid on the goods or services exported.

Yes, a business's GST registration can be canceled under certain circumstances, such as if the business is no longer operational, if the turnover falls below the registration threshold, or if there are any violations of GST regulations.