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.

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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)

The  Composition Scheme  helps reduce tax burden and compliance hassle.

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.

Nishant
Nishant
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.