Minimum Turnover for GST Registration in India

Aggregate turnover is used to decide whether GST registration is required and whether a person can use schemes like Composition. It is always calculated on an all India PAN basis, by adding supplies from all branches and states under the same PAN.

In simple terms, aggregate turnover generally includes:

• All taxable outward supplies (within state and outside state)
• All exempt supplies
• All exports of goods or services
• All inter state supplies made under the same PAN

And it excludes:

• GST itself (CGST, SGST, IGST, cess)
• The value of inward supplies on which tax is paid under reverse charge

So, when checking if you have crossed the threshold for registration or Composition, you look at total value of supplies, not just the taxable part and not including GST amount.

Goods vs Services in Turnover Calculation

For aggregate turnover, there is no separate formula for goods and services. Both are added in the same basket.

That means:

• Sales of goods (taxable, exempt, export, inter state) are included
• Supply of services (taxable, exempt, export, inter state) are also included

The difference comes later in threshold limits (for example, higher limit for goods in many states and lower limit for services), but while calculating aggregate turnover, you simply add all supplies of both goods and services under the same PAN.

Mixed and Composite Supply Consideration

Mixed and composite supplies are also part of aggregate turnover, but they are counted based on how GST law classifies them.

• A composite supply (for example, freight plus insurance where one is principal supply) is taxed according to the principal supply. For turnover, you take the full value of the composite supply.
• A mixed supply (unrelated items sold together for a single price) is taxed at the highest rate out of the items. For turnover, again you take the total value charged for that bundle.

In short, once you decide whether it is a mixed or composite supply and identify its GST treatment, the entire invoice value goes into aggregate turnover.

Inter State vs Intra State Supply Impact

Both inter state and intra state supplies are included while calculating aggregate turnover.

• Intra state supplies (CGST + SGST/UTGST) – value is included (without the GST amount).
• Inter state supplies (IGST) – value is also included, whether B2B, B2C or exports.

Exports and supplies to SEZ units, even though treated as zero rated, still count in aggregate turnover. This is important because a business with mostly exports can cross the registration threshold on turnover, even if GST paid on exports is zero.

GST registration becomes mandatory when your aggregate turnover in a financial year crosses the prescribed threshold, considering all supplies under the same PAN across India.

• For many states, traders in goods have a higher threshold (for example, up to ₹40 lakh in several states).
• Service providers and some other categories usually have a lower threshold (for example, ₹20 lakh in many states, and a lower limit in some special category states).

Once you cross the applicable limit:

• You must apply for GST registration within the prescribed time.
• From the effective date of registration, you must charge GST on outward supplies, issue proper tax invoices and file returns.
• You also become eligible to claim ITC on inputs, input services and capital goods used in business (subject to conditions).

Certain persons (like non resident taxable persons, casual taxable persons, e commerce operators, specified online service providers, TDS/TCS deductors etc.) may need compulsory registration regardless of turnover.

Voluntary GST Registration

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

• Eligibility to claim  Input Tax Credit (ITC)
• Better business reputation
• Facilitates inter-state sales

But once registered, you must file  GST returns  regularly.

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)