Minimum Turnover for GST Registration in India

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.

BOOK A FREE DEMO




    GST Registration Threshold Limits (As of 2025)

    1. For Businesses Supplying Goods

    • ₹40 lakhs: This is the threshold for GST registration in most Indian states.
    • ₹20 lakhs: For special category states like Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Sikkim, Tripura, Nagaland, and Uttarakhand.

    2. For Service Providers

    • ₹20 lakhs: For normal states.
    • ₹10 lakhs: For special category states.

    These limits apply to the aggregate turnover in a financial year.

    How to Calculate Aggregate Turnover

    Your aggregate turnover includes:

    • Taxable supplies (excluding inward supplies under reverse charge)
    • Exempt supplies
    • Exports of goods or services
    • Inter-state supplies

    It excludes:

    • Taxes like CGST, SGST, IGST, UTGST, and compensation cess
    • Inward supplies under reverse charge

    Aggregate turnover is calculated PAN-wise across all states and business branches.

    Mandatory GST Registration Irrespective of Turnover

    Some businesses must register under GST even if their turnover is below the limit:

    • Inter-state suppliers of goods
    • Casual taxable persons
    • Non-resident taxable persons
    • E-commerce sellers and operators
    • Businesses liable to deduct TDS/TCS under GST
    • Input Service Distributors (ISD)
    • Reverse charge liable businesses

    Example: Selling on Amazon or Flipkart? You need GST registration from the first sale.

    Voluntary GST Registration

    You can register voluntarily even if your turnover is below the threshold. Benefits include:

    But once registered, you must file GST returns regularly.

    Composition Scheme for Small Businesses

    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.

    Penalties for Not Registering Under GST

    If you’re liable but haven’t registered:

    • Penalty: 10% of tax due or ₹10,000 (whichever is higher)
    • For willful evasion: Penalty up to 100% of tax due

    Documents Required for GST Registration

    • PAN card
    • Business registration proof
    • Photo and ID proof of owner/partners
    • Address proof of business
    • Bank statement/cancelled cheque
    • Authorization letter or board resolution
    • Digital Signature (for companies/LLPs)

    How to Register for GST

    Follow these steps:

    • Go to www.gst.gov.in
    • Click ‘Services’ > ‘Registration’ > ‘New Registration’
    • Fill application form
    • Upload documents
    • Submit and track your ARN
    • Once approved, receive your GSTIN

    Conclusion

    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.

    Chartered Accountant
    MRN No.: 445516
    City: Delhi

    I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.

    Please Wait
    • Home
    • /
    • GST
    • /
    • minimum turnover for GST registration in india

    BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.

    phone Sales & Support:

    +91 82 82 82 82 82
    +91 11 - 4096 4096