GST Registration Turnover Limits for Goods and Services

GST registration becomes compulsory once your yearly turnover crosses a set limit. For most states that is Rs 40 lakh for suppliers of goods and Rs 20 lakh for service providers. Special category states have lower limits. Some businesses must register from the first rupee, whatever their turnover.

Why the limit matters

Crossing the limit without registering can mean tax payable with interest and penalty, plus no input tax credit for the period. If you are close to the line, plan your GST registration before you cross it, not after.

The usual limits

• Goods suppliers: Rs 40 lakh in most states; Rs 20 lakh in special category states
• Service providers: Rs 20 lakh in most states; Rs 10 lakh in special category states

The special category group covers Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand. The Rs 40 lakh limit for goods does not apply to every product, since a few items such as ice cream, pan masala and tobacco products are excluded. Some states also choose a different figure, so check your own state.

When you must register regardless of turnover

• Selling through e-commerce platforms, or operating one
• Casual taxable persons and non-resident taxable persons
• Making inter-state taxable supplies of goods
• Paying tax under reverse charge in certain cases
• Providing online services to unregistered persons from outside India

Key points

Turnover is counted on a PAN basis across the whole country, so several small shops under one PAN are added together. A small trader who wants a lighter compliance load can look at the GST composition scheme, while a business that has registered must follow GST return filing every period. Registration below the limit is also allowed if you want to claim input credit or deal with larger buyers.

Common mistakes

• Counting only one branch’s sales instead of total PAN turnover
• Assuming the limit applies even for inter-state sales or marketplace selling
• Mixing goods and services limits when you do both
• Waiting until the notice arrives

Related guides: MSME Classification, What is a PAN Card, What is PF and UAN

FAQs

What is the GST limit for a service provider?

Rs 20 lakh in most states and Rs 10 lakh in special category states, subject to the exceptions where registration is needed anyway.

Do I need GST if I sell only on Amazon or Flipkart?

Generally yes. Sellers through e-commerce operators have to register even when turnover is below the limit.

Can I register for GST voluntarily?

Yes. A business below the limit can register voluntarily, though it then takes on the return and compliance duties.

Unsure whether you have crossed the line? Talk to a Taxhint expert and get a clear answer.