The Goods and Services Tax (GST) system has brought uniformity in indirect taxation across India. One of the most common questions small businesses ask is: What is the minimum turnover required to register for GST? This blog explains the current GST turnover limit, when GST registration becomes mandatory, and when businesses can register voluntarily.
These limits apply to the aggregate turnover in a financial year.
Your aggregate turnover includes:
It excludes:
Aggregate turnover is calculated PAN-wise across all states and business branches.
Some businesses must register under GST even if their turnover is below the limit:
Example: Selling on Amazon or Flipkart? You need GST registration from the first sale.
You can register voluntarily even if your turnover is below the threshold. Benefits include:
But once registered, you must file GST returns regularly.
The Composition Scheme helps reduce tax burden and compliance hassle.
Category | Turnover Limit | Tax Rate |
---|---|---|
Manufacturers & Traders | Up to ₹1.5 crore (₹75 lakhs in special states) | 1% (0.5% CGST + 0.5% SGST) |
Restaurants (non-alcohol) | Up to ₹1.5 crore | 5% (2.5% CGST + 2.5% SGST) |
Service Providers | Up to ₹50 lakhs | 6% (3% CGST + 3% SGST) |
Note: Composition dealers cannot claim input tax credit.
If you’re liable but haven’t registered:
Follow these steps:
Knowing the GST turnover limit helps businesses stay compliant. If you’re nearing the threshold or plan to grow, registering early avoids future complications. Voluntary registration also enables better business reputation and input tax credit.
Use reliable GST accounting software to track your turnover, generate invoices, and file returns with ease.