Minimum Turnover for GST Registration in India in 2026
Quick Summary
- Goods-only suppliers in most states and union territories need GST registration after ₹40 lakh aggregate turnover.
- Goods-only suppliers in specified lower-threshold states and union territories need registration after ₹20 lakh.
- Service providers and mixed suppliers in most states and union territories need registration after ₹20 lakh.
- Service providers and mixed suppliers in Manipur, Mizoram, Nagaland, and Tripura need registration after ₹10 lakh.
- Aggregate turnover is calculated across India under the same PAN, not separately for each state.
- Aggregate turnover includes taxable supplies, exempt supplies, exports, and inter-state supplies.
- GST, compensation cess, and inward supplies taxable under reverse charge are excluded from aggregate turnover.
- E-commerce goods sellers are not always required to register from the first rupee now. Eligible small intra-state sellers can remain unregistered if they satisfy the prescribed conditions.
- Inter-state goods suppliers generally require GST registration, but small inter-state service providers have specific exemptions.
- Section 24 of the CGST Act covers compulsory GST registration categories, irrespective of turnover.
- GST registration must be applied for within 30 days from the date the person becomes liable.
- Voluntary GST registration is allowed even below the threshold.
- Penalty for failure to register when liable can be ₹10,000 or an amount linked to tax not paid or evaded, whichever is higher.
- Interest on delayed GST payment is generally 18% per annum.
What Is the GST Registration Turnover Limit?
The GST registration turnover limit is the minimum aggregate turnover after which a business becomes liable to register under GST.
Under Section 22 of the CGST Act, every supplier whose aggregate turnover in a financial year crosses the prescribed threshold is liable to take GST registration, unless the person is specifically exempt from registration.
The GST threshold depends mainly on three factors:
- Whether the business supplies only goods
- Whether the business supplies services or both goods and services
- The state or union territory from which the business makes taxable supplies
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GST Registration Threshold Table for 2026
| Type of Supplier | Threshold in Most States and UTs | Lower Threshold Applies In |
|---|---|---|
| Exclusive supplier of goods | ₹40 lakh | ₹20 lakh in specified states and UTs |
| Supplier of services | ₹20 lakh | ₹10 lakh in Manipur, Mizoram, Nagaland, and Tripura |
| Supplier of both goods and services | ₹20 lakh | ₹10 lakh in Manipur, Mizoram, Nagaland, and Tripura |
The threshold is based on aggregate turnover during a financial year. It is not calculated branch-wise, state-wise, or invoice-wise. If a PAN has businesses in multiple states, all supplies under that PAN are aggregated.
State-Wise Threshold for Goods and Services
A. Goods-Only Suppliers
Goods-only suppliers in most states and union territories are subject to the ₹40 lakh registration threshold. However, the ₹20 lakh threshold applies to goods-only suppliers in the following states and union territories:
| State / UT | Goods Registration Threshold |
|---|---|
| Arunachal Pradesh | ₹20 lakh |
| Manipur | ₹20 lakh |
| Meghalaya | ₹20 lakh |
| Mizoram | ₹20 lakh |
| Nagaland | ₹20 lakh |
| Puducherry | ₹20 lakh |
| Sikkim | ₹20 lakh |
| Telangana | ₹20 lakh |
| Tripura | ₹20 lakh |
| Uttarakhand | ₹20 lakh |
Goods-only suppliers in other states and union territories generally follow the ₹40 lakh threshold, subject to the conditions and exclusions under the GST law.
B. Service Providers and Mixed Suppliers
For service providers and businesses supplying both goods and services, the normal threshold is ₹20 lakh.
The ₹10 lakh threshold applies only in these states:
| State | Service / Mixed Supply Threshold |
|---|---|
| Manipur | ₹10 lakh |
| Mizoram | ₹10 lakh |
| Nagaland | ₹10 lakh |
| Tripura | ₹10 lakh |
This means a service provider in Delhi, Maharashtra, Karnataka, Tamil Nadu, Gujarat, Rajasthan, Uttar Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, or Ladakh generally follows the ₹20 lakh threshold.
What Is Aggregate Turnover?
Aggregate turnover means the total value of supplies made by all persons having the same PAN across India.
It includes: taxable supplies, exempt supplies, exports of goods or services, inter-state supplies, and supplies made from all states under the same PAN
It excludes: CGST, SGST, UTGST, IGST, Compensation cess and Inward supplies on which GST is payable under reverse charge
Aggregate turnover is not the same as taxable turnover. A business may have taxable sales of only ₹32 lakh but aggregate turnover of ₹43 lakh if exempt sales and exports are also included.
Worked Example
Mr. Ramesh runs a wholesale stationery business in Pune, Maharashtra. His financial year transactions are:
| Activity | Annual Value |
|---|---|
| Sale of stationery | ₹32 lakh |
| Sale of exempt books | ₹5 lakh |
| Export of pens | ₹6 lakh |
| Total aggregate turnover | ₹43 lakh |
Mr. Ramesh supplies goods from Maharashtra, where the ₹40 lakh threshold generally applies to eligible goods-only suppliers. His aggregate turnover is ₹43 lakh, so he is liable to register for GST.
His taxable sales alone are ₹32 lakh, but that does not matter for threshold calculation because exempt supplies and exports are also included in aggregate turnover.
What Is Excluded from Aggregate Turnover?
The following items are not included in aggregate turnover:
| Excluded Item | Treatment |
|---|---|
| CGST | Excluded |
| SGST | Excluded |
| UTGST | Excluded |
| IGST | Excluded |
| GST Compensation Cess | Excluded |
| Inward supplies under reverse charge | Excluded |
For example, if a business collects ₹42 lakh as taxable value and ₹7.56 lakh as GST, the aggregate turnover is ₹42 lakh, not ₹49.56 lakh. GST collected from customers is a tax amount and is not treated as turnover for this purpose.
Reverse charge inward supplies are also excluded. If a business pays GST under the reverse charge on legal fees, transport services, or other notified inward supplies, that value does not count toward its aggregate turnover.
Exempt Supplies and GST Registration
Exempt supplies are included in aggregate turnover. Nil-rated supplies and zero-rated supplies are also included.
This creates confusion for many businesses because exempt sales are not subject to GST, but they still count toward the registration threshold.
For example, if a trader has ₹25 lakh taxable sales and ₹18 lakh exempt sales, the aggregate turnover is ₹43 lakh. If the trader is an eligible goods-only supplier in a ₹40 lakh threshold state, GST registration is required.
Important Note: A person who exclusively supplies wholly exempt goods or services, or supplies that are not liable to GST, is not required to register under Section 23. This means exempt supplies are included in aggregate turnover when the threshold calculation is relevant, but a person dealing only in wholly exempt supplies may still be outside the scope of registration.
GST Threshold Limit for Goods and Services
Normal vs Special Category States (Comparison)
| State Category | Goods | Services |
|---|---|---|
| Normal category states | ₹40 lakh | ₹20 lakh |
| Special category states | ₹20 lakh | ₹10 lakh |
Businesses operating in special category states need closer monitoring, especially those managing sales through multiple channels. Using integrated gst reconciliation software helps reconcile outward supplies with returns and ensures threshold calculations remain accurate.
Mandatory GST Registration Regardless of Turnover
Some persons must take GST registration even if their turnover is below the normal threshold. These cases are covered under Section 24 of the CGST Act .
The compulsory registration categories include:
| No. | Category | Meaning |
|---|---|---|
| 1 | Persons making inter-state taxable supplies | Persons supplying taxable goods or services from one state to another, subject to exemptions |
| 2 | Casual taxable persons | Persons making taxable supplies occasionally in a state where they do not have a fixed place of business |
| 3 | Persons required to pay tax under reverse charge | Recipients liable to pay GST on notified inward supplies |
| 4 | Persons required to pay tax under Section 9(5) | E-commerce operators liable to pay GST on notified services |
| 5 | Non-resident taxable persons | Non-residents making taxable supplies in India |
| 6 | Persons required to deduct TDS under Section 51 | Notified government departments, local authorities, PSUs, and other specified persons |
| 7 | Agents supplying on behalf of taxable persons | Agents or representatives making taxable supplies for another taxable person |
| 8 | Input Service Distributors | Offices distributing input tax credit on common input services |
| 9 | Persons supplying through e-commerce operators required to collect TCS | Subject to notified exemptions for eligible small suppliers |
| 10 | E-commerce operators required to collect TCS | Marketplaces and platforms covered under Section 52 |
| 11 | OIDAR service providers from outside India | Foreign digital service providers supplying to unregistered recipients in India |
| 12 | Other notified persons | Any other person or class of persons notified by the government |
Inter-State Supplies
Inter-state suppliers are covered under compulsory registration, but the rule is not absolute in every case. Inter-state suppliers of taxable goods generally need GST registration irrespective of turnover, unless a specific exemption applies.
Small service providers making interstate taxable service supplies are allowed to use the normal threshold exemption. This means a Delhi consultant providing services to a Mumbai client does not need GST registration only because the client is in another state, as long as the consultant’s aggregate turnover remains below the applicable threshold and no other mandatory registration rule applies.
GST Registration Limit for E-Commerce Sellers
The GST rule for e-commerce sellers has changed from the older position. Earlier, sellers supplying goods through e-commerce operators were generally required to take GST registration from the first rupee of turnover. That rule is no longer applicable for every seller.
From 1 October 2023, eligible small suppliers of goods can sell through e-commerce operators without GST registration, provided they meet the prescribed conditions.
Goods Sold Through Marketplaces
If a person sells goods through platforms such as Amazon, Flipkart, Meesho, Myntra, Snapdeal, or another e-commerce operator that requires TCS collection, GST registration is not automatically required from the first sale in every case.
An unregistered goods seller can remain outside GST registration if all the following conditions are satisfied:
- Aggregate turnover is within the applicable threshold under Section 22.
- The seller makes only intra-state supplies.
- The seller supplies through e-commerce operators only in one state or union territory.
- The seller has a PAN.
- The seller declares PAN, business details, and place of business on the common GST portal.
- The seller obtains the required enrolment number.
- The seller does not make supply through the e-commerce operator until the enrolment number is granted.
- The seller is not required to register under any other provision.
If any of these conditions are not met, GST registration may become mandatory.
When E-Commerce Goods Sellers Must Register
GST registration is required if the seller:
- Crosses the applicable turnover threshold
- Makes inter-state supplies
- Sells through e-commerce operators in more than one state or union territory
- Does not obtain the required enrolment
- Falls under any other compulsory registration category
- Supplies goods that are excluded from the threshold benefit
Services Sold Through E-Commerce Platforms
Service providers supplying through e-commerce platforms need separate treatment.
If the service is not covered under Section 9(5), the normal GST registration threshold applies. For example, a freelance designer or consultant providing services through an online platform may not need GST registration if aggregate turnover is below the applicable threshold.
If the service is notified under Section 9(5), the e-commerce operator is liable to pay GST on that service. Examples include notified categories such as passenger transport through aggregators, restaurant services through platforms, accommodation services in specified cases, and housekeeping services in specified cases.
In such cases, the supplier may not need registration only because the service is supplied through the platform, provided the supplier is below the threshold and is not liable under any other rule.
Own Website Sales
Selling through your own website is different from selling through an e-commerce marketplace that collects TCS.
If you sell goods or services through your own website, the normal GST registration threshold applies. You are treated as a regular supplier unless another compulsory registration provision applies.
GST Registration for Service Providers, Freelancers, and Consultants
Service providers need GST registration when aggregate turnover crosses the applicable service threshold.
| Location | GST Registration Required When Aggregate Turnover Exceeds |
|---|---|
| Most states and union territories | ₹20 lakh |
| Manipur, Mizoram, Nagaland, and Tripura | ₹10 lakh |
This applies to freelancers, consultants, agencies, professionals, creators, and service businesses.
What Counts as a Service?
Services include software development, web design, digital marketing, consulting, training, coaching, legal services, CA or CS professional services, content writing, video production, photography, accounting services, architecture, interior design, rental of immovable property, repair work, installation work, and other business or professional services.
Some services may be exempt under GST, but exempt supplies are still included in the calculation of aggregate turnover unless the person is exclusively supplying wholly exempt services and is outside the scope of registration under Section 23.
Export of Services
Export of services is treated as zero-rated under GST. However, export turnover is still included in aggregate turnover for registration threshold.
Example: A freelance software developer in Bengaluru earns:
| Source of Income | Amount |
|---|---|
| Indian clients | ₹15 lakh |
| US clients | ₹8 lakh |
| Total aggregate turnover | ₹23 lakh |
The total aggregate turnover is ₹23 lakh. Since the freelancer is in Karnataka and the threshold for services is ₹20 lakh, GST registration is required.
Once registered, the freelancer can usually export services under LUT without charging IGST and may claim refund of eligible input tax credit , subject to GST refund rules and documentation.
Professionals Below Threshold
A freelancer or consultant below the applicable threshold is not required to register only because they are carrying on a profession or providing services. However, voluntary registration may be useful if they serve GST-registered B2B clients, want to claim input tax credit, or plan to scale.
GST Threshold for Mixed Businesses
Many businesses supply both goods and services. In these cases, the lower service or mixed-supply threshold applies.
A mixed supplier in most states and union territories needs to register after an aggregate turnover of ₹20 lakh. A mixed supplier in Manipur, Mizoram, Nagaland, or Tripura needs registration after ₹10 lakh.
Example
A hardware shop in Delhi sells computer hardware and also provides installation and repair services.
| Activity | Annual Turnover |
|---|---|
| Hardware sales | ₹32 lakh |
| Repair and installation charges | ₹3 lakh |
| Total aggregate turnover | ₹35 lakh |
Although the main activity is sale of goods, the business also supplies services. Therefore, the ₹20 lakh threshold applies. Since aggregate turnover is ₹35 lakh, GST registration is required.
Interest or Discount Income
Interest or discount income from deposits, loans, or advances does not by itself stop a supplier from being treated as an exclusive supplier of goods for the ₹40 lakh threshold benefit. This is a specific carve-out under the GST threshold framework.
Composition Scheme Threshold
The Composition Scheme is a simplified GST payment scheme for eligible registered taxpayers. It is not the same as the GST registration threshold.
The registration threshold decides whether a person needs GST registration. The Composition Scheme threshold decides whether an already registered person can opt for a lower flat tax rate and simpler compliance.
Composition Scheme Eligibility Limits
| Category | Turnover Limit |
|---|---|
| Manufacturers, except excluded goods | ₹1.5 crore |
| Traders | ₹1.5 crore |
| Restaurants not serving alcohol | ₹1.5 crore |
| Eligible suppliers in specified states | ₹75 lakh |
| Eligible service providers under Section 10(2A) | ₹50 lakh |
The ₹75 lakh limit applies to specified states, including Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
Composition Scheme Tax Rates
| Category | Effective GST Rate on Turnover |
|---|---|
| Manufacturers | 1% |
| Traders | 1% |
| Restaurants not serving alcohol | 5% |
| Eligible service providers under Section 10(2A) | 6% |
These are combined effective rates. In practice, the rate is split between CGST and SGST or UTGST for intra-state supplies.
Key Restrictions Under the Composition Scheme
A composition taxpayer cannot collect GST separately from customers and cannot claim input tax credit. The taxpayer must issue a bill of supply instead of a tax invoice. The person cannot make inter-state outward supplies and cannot supply through an e-commerce operator required to collect TCS unless specifically allowed.
The taxpayer must also display “ composition taxable person ” on signboards and relevant documents. Composition taxpayers generally file CMP-08 for quarterly tax payment and GSTR-4 annually.
Voluntary GST Registration
A person can take voluntary GST registration even if the aggregate turnover is below the applicable threshold. Voluntary registration may be useful in the following cases:
A. B2B Customers Prefer GST-Registered Suppliers
Many GST-registered businesses prefer buying from registered suppliers because they can claim input tax credit on valid GST invoices. If a supplier is unregistered, the buyer cannot claim ITC, which can make the supplier less attractive in B2B transactions.
B. Input Tax Credit Becomes Available
An unregistered person cannot claim input tax credit on business purchases. After GST registration, eligible GST paid on purchases, services, software, rent, professional fees, and other business expenses can be claimed as ITC, subject to GST rules.
C. Export Benefits Become Easier
Exporters often register voluntarily to use LUT, supply exports without payment of IGST, and claim a refund of eligible accumulated ITC .
D. Business Credibility Improves
A GSTIN is often required for tenders, corporate onboarding, B2B marketplaces, vendor registration, and larger customer contracts.
E. Business Is Close to the Threshold
If a business expects to cross the limit soon, voluntary registration can prevent a compliance gap.
What Voluntary Registration Means
A voluntarily registered person is treated like any other registered taxpayer. The person must charge GST on taxable supplies, issue GST-compliant invoices, file the applicable returns, maintain records, and comply with all GST provisions.
The old one-year restriction on cancellation of voluntary registration is no longer applicable. A voluntarily registered person can apply for cancellation if they are no longer liable or no longer wish to remain registered, subject to GST cancellation rules.
Time Limit to Register After Crossing the Threshold
A person who becomes liable for GST registration must apply within 30 days from the date on which the liability arises.
For turnover-based registration, liability usually arises on the date on which aggregate turnover first exceeds the applicable threshold in the financial year.
| Situation | Example | Registration Deadline |
|---|---|---|
| Goods-only supplier in Maharashtra crosses ₹40 lakh on 15 June | Eligible goods supplier in a ₹40 lakh state | Apply by 15 July |
| Service provider in Delhi crosses ₹20 lakh on 3 November | Service threshold crossed | Apply by 3 December |
| Mixed supplier in Tripura crosses ₹10 lakh on 28 February | Lower-threshold state | Apply by 30 March |
Effective Date of Registration
If the application is filed within 30 days, registration is generally effective as of the date the person became liable.
If the application is filed after 30 days, registration may be effective from the date of grant or the date of application, depending on the facts and processing. This can create a gap period during which the person was liable to register but remained unregistered.
Businesses should track aggregate turnover every month. For goods suppliers with a turnover of ₹40 lakh, tracking should start before the turnover reaches ₹35 lakh-₹38 lakh. For service providers, tracking should start well before ₹20 lakh.
Casual and Non-Resident Taxable Persons
Casual taxable persons and non-resident taxable persons are subject to separate rules. They must apply for GST registration at least five days before starting business in India or in the relevant state.
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How GST Threshold Rules Have Changed Since 2017
The GST registration threshold has changed since GST was introduced.
| Period | Goods Threshold | Services Threshold | Key Position |
|---|---|---|---|
| July 2017 to March 2019 | ₹20 lakh in most states | ₹20 lakh in most states | Common threshold for goods and services, with lower limit in special category states |
| From April 2019 | ₹40 lakh for eligible goods-only suppliers in most states | ₹20 lakh in most states | Higher threshold introduced for goods-only suppliers |
| Current 2026 position | ₹40 lakh, ₹20 lakh, or ₹10 lakh depending on supply type and state | ₹20 lakh or ₹10 lakh, depending on the state | Current thresholds continue, with notified exemptions and conditions |
Consequences of Not Registering After Crossing the Limit
Failing to obtain GST registration after becoming liable can create risks of tax, interest, penalties, and assessments.
A. Tax Liability for the Unregistered Period
If a person was liable to register but continued to carry on business without registration, GST may become payable on taxable supplies made during that period. Since the person did not collect GST properly through valid tax invoices, the liability may have to be paid from their own funds.
B. Interest on Delayed Payment
Delayed GST payment attracts interest. The commonly applicable rate for delayed payment of tax is 18% per annum.
C. Penalty for Failure to Register
Failure to obtain GST registration when liable can attract a penalty. The penalty can be ₹10,000 or an amount linked to tax evaded, tax not paid, or wrongly passed on, whichever is higher, depending on the facts of the case.
D. Best Judgment Assessment
If a person liable to register fails to obtain registration, the proper officer can assess the tax liability based on available information. This is called a best judgment assessment for unregistered persons.
E. Buyer ITC Problems
If a supplier was required to register but remained unregistered, buyers cannot claim ITC because no valid GST tax invoice was issued. This can create commercial disputes, debit notes, payment holds, or vendor blacklisting in B2B transactions.
F. Business Disruption
Non-registration can affect e-way bill generation , e-invoicing applicability where relevant, vendor onboarding, marketplace operations, bank documentation, and tender participation.
Registered businesses can eliminate this risk entirely with BUSY's e-way bill software , which automates e-way bill generation directly from invoices without any manual effort.
GST Registration Cancellation When Turnover Falls Below the Limit
GST registration does not automatically get cancelled when turnover falls below the threshold. A registered person must apply for cancellation if they are no longer liable to remain registered.
When Cancellation May Be Applied For
A registered person may apply for cancellation when:
- Business has been discontinued
- Business has been transferred, merged, demerged, or otherwise disposed of
- Constitution of business has changed
- Taxable person is no longer liable to be registered
- Voluntarily registered person wants cancellation and is eligible
- Turnover has fallen below the applicable threshold, and the person is no longer otherwise liable
What Happens on Cancellation
The taxpayer may need to file pending returns, pay outstanding dues, reverse applicable ITC, and file the final return where required. Stock, capital goods, and input tax credit balances must be handled as per the GST rules.
Until cancellation is approved, the taxpayer remains registered and must comply with return filing and other obligations.
How to Apply for GST Registration
GST registration is applied for through the GST portal .
Documents Required for GST Registration
| Document | Purpose |
|---|---|
| PAN of the business, proprietor, partners, or company | Identity and PAN verification |
| Aadhaar of the authorized signatory | Authentication and verification |
| Photograph of proprietor, partners, or directors | Identity record |
| Proof of principal place of business | Address verification |
| Rent agreement, ownership document, electricity bill, or NOC | Business premises proof |
| Partnership deed, LLP agreement, or incorporation certificate | Constitution of business |
| Authorisation letter or board resolution | Authorised signatory proof |
| Bank details | Bank account reporting, where applicable |
| Digital Signature Certificate | Mandatory for companies and LLPs |
GST Registration Process
- Visit the GST portal.
- Select “Register Now” under the taxpayer registration option.
- Complete Part A with PAN, mobile number, email ID, and state details.
- Verify OTP sent to the registered mobile number and email.
- A Temporary Reference Number is generated.
- Complete Part B using the TRN.
- Enter business details, promoter details, authorized signatory details, principal place of business, additional places of business, goods and services details, and bank details where applicable.
- Upload supporting documents.
- Submit the application using Aadhaar authentication, EVC, or DSC, depending on the applicant type.
- ARN is generated after successful submission.
- The application is processed by the GST department.
- If the officer raises a query, the applicant must respond within the prescribed time.
- GSTIN is issued after approval.
State-Specific Registration
GST registration is state-specific. If a business operates from Maharashtra and Karnataka, it generally needs separate GST registrations in both states if taxable supplies are made from both locations.
Aggregate turnover is calculated under the same PAN across India, but registration is granted separately for each state or union territory.
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Conclusion
The GST registration turnover limit in India depends on the nature of supply, the location of the business, and whether any compulsory registration rule applies.
Aggregate turnover must be calculated across India under the same PAN. It includes taxable supplies, exempt supplies, exports, and interstate supplies. GST and reverse charge inward supplies are excluded.
A business approaching the threshold should monitor turnover monthly, check whether Section 24 applies, register within 30 days of becoming liable, and evaluate voluntary registration if it serves GST-registered customers or plans to export.
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