GST Registration Threshold in India: Who Must Register
GST registration limits in India: ₹40 lakh for goods and ₹20 lakh for services in most states, lower limits in special category states, and when registration is compulsory.
Short answer
Most businesses must register for GST once aggregate turnover crosses ₹40 lakh for goods or ₹20 lakh for services in a financial year. In special category states the limits are ₹20 lakh and ₹10 lakh. Inter-state sellers of goods and e-commerce sellers must register whatever their turnover.
The thresholds
| Supplier type | Most states | Special category states |
|---|---|---|
| Goods only | ₹40 lakh | ₹20 lakh |
| Services (or goods and services) | ₹20 lakh | ₹10 lakh |
The ₹40 lakh goods limit is optional for each state and does not apply to some goods such as ice cream, pan masala and tobacco. Suppliers of those must register at ₹20 lakh.
The special category states for these lower limits are Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand.
What counts as aggregate turnover
Aggregate turnover is the total value of taxable, exempt and export supplies made under the same PAN across India. It excludes GST itself and the value of inward supplies on which you pay tax under reverse charge.
Count all your branches together. Two shops in two states under one PAN share one threshold.
When you must register regardless of turnover
- You make inter-state taxable supplies of goods.
- You sell goods through an e-commerce operator such as a marketplace (with limited exceptions).
- You are a casual taxable person or a non-resident taxable person.
- You must pay tax under reverse charge or deduct or collect tax under GST.
- You act as an input service distributor or supply online services to India from abroad.
Small service providers making inter-state supplies are generally exempt up to the ₹20 lakh limit. Check your exact case before relying on it.
Voluntary registration
You can register before you cross the limit. Many B2B suppliers do so because business customers want to claim input tax credit on their invoices.
Once registered you must file returns every period even when there are no sales, so weigh the compliance before you register early.
Timeline and next steps
Apply within 30 days of becoming liable. You need PAN, proof of business address, identity and address proof of the proprietor, partners or directors and a bank account.
After registration plan your return cycle. Most regular taxpayers file GSTR-1 and GSTR-3B monthly or quarterly under the QRMP scheme.
Related services
Sources
General information only and not legal or tax advice. Laws and limits change; confirm your case with a qualified professional.
Common questions
Is GST registration mandatory for a startup with no revenue?
No, unless a compulsory category applies such as inter-state sales of goods or selling through an e-commerce marketplace. You can register voluntarily if customers need GST invoices.
Does export turnover count towards the GST threshold?
Yes. Exports are part of aggregate turnover even though they are zero-rated.
What is the GST threshold for freelancers?
Freelancers supply services, so the limit is ₹20 lakh in most states and ₹10 lakh in special category states. Exporting services counts towards it.
How long does GST registration take?
Usually a few working days after a complete application, longer if the officer raises a query or orders physical verification.