What is the GST registration turnover limit?

By the India Law Simplified editorial team · Verified against the bare Acts & official portals · Updated 2026-08-18 · ~8 min read

⚡ Quick answer

GST registration becomes mandatory once your aggregate annual turnover crosses ₹40 lakh for a supplier of goods or ₹20 lakh for a supplier of services (₹20 lakh and ₹10 lakh respectively in special-category states). It is also compulsory — regardless of turnover — for anyone making inter-state taxable supplies, selling through an e-commerce operator, or liable to pay tax under reverse charge. You can also register voluntarily below the limit. Registration on the GST portal is free.

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"Do I need to register for GST?" is the first question every new business and freelancer in India asks. Register too late and you face penalties and lost input tax credit; register unnecessarily and you take on monthly compliance you didn't need. This guide explains the exact turnover thresholds, what counts as 'aggregate turnover', the cases where you must register no matter how small you are, and when voluntary registration actually makes sense.

1The basic turnover thresholds

The limit depends on whether you supply goods or services, and on your state:

Goods (normal states): ₹40 lakh aggregate turnover
Services (normal states): ₹20 lakh aggregate turnover
Goods (special-category states): ₹20 lakh
Services (special-category states): ₹10 lakh

⚠️ ImportantSpecial-category states include the north-eastern states and a few hill states. If you operate in or from these, your threshold is lower — check your state's exact position.

2What 'aggregate turnover' means

Aggregate turnover is computed across your whole PAN, all-India — not per branch or per state. It includes all taxable supplies, exempt supplies, exports, and inter-state supplies, but excludes the GST itself and inward supplies taxed under reverse charge.

So if you run two businesses under the same PAN, their turnovers are added together to test the threshold.

3When you must register regardless of turnover

Some businesses must register even if turnover is far below the limit — even from rupee one:

You make inter-state taxable supplies of goods (selling outside your state)
You sell through an e-commerce operator (like Amazon, Flipkart)
You are liable to pay tax under reverse charge
You are a casual taxable person (occasional supplier, e.g. at exhibitions) or a non-resident taxable person
You are an input service distributor or required to deduct TDS/TCS under GST

💡 ExampleAnjali sells handmade candles online via an e-commerce marketplace, with turnover of only ₹6 lakh. Even though that's well under ₹40 lakh, she must register for GST because selling through an e-commerce operator triggers compulsory registration.

4Should you register voluntarily?

You can register below the threshold by choice. It can be worth it if your buyers are businesses who want input tax credit (they'll prefer a GST-registered supplier), or if you buy a lot and want to claim ITC yourself.

✅ TipVoluntary registration brings full monthly compliance (GSTR-1 and GSTR-3B, even nil returns). If most of your customers are individuals who don't claim ITC, staying unregistered until you cross the limit is usually simpler.

5Special category states have lower thresholds

The headline figures — ₹40 lakh for goods and ₹20 lakh for services — are the thresholds for most of the country. Several states operate on half of that.

In the special category states the limit is ₹20 lakh for goods and ₹10 lakh for services. If you supply from, or have a place of business in, one of those states, the lower figure is the one that applies to you.

⚠️ ImportantSome states exercised an option on the goods threshold, so a business operating across state lines can face different limits in different states at the same time. Check the state you actually supply from rather than assuming the national figure.

6Registration is state-wise, not business-wise

This is the point most often misunderstood. GST registration attaches to a state, not to a legal entity. A company operating in three states needs three GSTINs under the same PAN.

Aggregate turnover, by contrast, is computed on an all-India basis on that PAN. So turnover from every state is added together to decide whether you cross the threshold, but once you cross it you register in each state from which you make taxable supplies.

Aggregate turnover includes exempt supplies, exports and inter-state supplies, not just taxable sales
It excludes GST itself, and excludes inward supplies on which you pay tax under reverse charge
It is computed on the PAN, so all businesses under the same PAN are aggregated

7The 30-day clock, and what late registration costs

Once you become liable, the application must be made within 30 days. The date that matters is the date you became liable, not the date you noticed.

Registering late has a specific and expensive consequence: you cannot claim input tax credit on purchases made before the effective date of registration, but you remain liable for tax on the supplies you made after crossing the threshold. You pay output tax on sales you have already invoiced without GST, and you cannot recover the input side.

✅ TipIf you are near the threshold, track aggregate turnover monthly rather than at year end. The cost of registering slightly early is administrative; the cost of registering late is cash.

8Casual and non-resident taxable persons register regardless

Two categories have no threshold at all and are frequently overlooked by businesses that only occasionally cross a state line.

A casual taxable person — someone supplying occasionally in a state where they have no fixed place of business, such as at an exhibition or a trade fair — must register before commencing business, irrespective of turnover. A non-resident taxable person is treated the same way.

Registration for both is temporary, valid for the period applied for up to ninety days and extendable, and it requires an advance deposit of the estimated tax liability at the time of applying.

✅ TipIf you are exhibiting in another state for a week, this applies to you even if your annual turnover is nowhere near the threshold.

GST registration thresholds at a glance
Supplier type	Normal states	Special-category states
Goods	₹40 lakh	₹20 lakh
Services	₹20 lakh	₹10 lakh
Inter-state / e-commerce / reverse charge	₹0 (compulsory)	₹0 (compulsory)

Key takeaways

Mandatory at ₹40 lakh turnover for goods, ₹20 lakh for services (half that in special-category states).
Aggregate turnover is computed PAN-wide across all your businesses, all-India.
Inter-state sellers, e-commerce sellers and reverse-charge cases must register from rupee one.
Registration on the official GST portal is completely free — avoid agents charging high fees.
Voluntary registration helps if your customers want ITC, but it brings full monthly compliance.

Frequently asked questions

Is GST registration free?

Yes — registration on the GST portal is completely free. Avoid agents who charge high fees for it; the AI-guided steps here walk you through the application at no cost.

Do freelancers and consultants need GST registration?

A service provider must register once turnover crosses ₹20 lakh (₹10 lakh in special-category states), or immediately if they make inter-state supplies. Many freelancers supplying clients in other states or abroad register early, partly to claim ITC and look established.

What happens if I don't register when I should?

Operating without registration when required attracts a penalty (10% of tax due or ₹10,000, whichever is higher; 100% in fraud cases), plus you can't collect GST or claim ITC for that period. Register on time to avoid this.

Is GST registration based on income or turnover?

Turnover, not profit. It's based on the total value of your supplies (sales), computed PAN-wide — not on your net income after expenses.

Are the thresholds the same in every state?

No. Most of the country uses ₹40 lakh for goods and ₹20 lakh for services, but the special category states use ₹20 lakh and ₹10 lakh respectively. Some states also exercised an option on the goods threshold, so a business supplying from several states can face different limits at once.

I operate in three states — do I need three registrations?

Yes. Registration is state-wise, not entity-wise, so you take a separate GSTIN in each state from which you make taxable supplies, all under the same PAN. Aggregate turnover, however, is computed across all of India on that PAN.

What exactly counts toward aggregate turnover?

Taxable supplies, exempt supplies, exports and inter-state supplies, computed on the PAN across all states. It excludes GST itself and excludes inward supplies on which you pay tax under reverse charge. Exempt supplies counting toward the total is what pushes many businesses over unexpectedly.

How long do I have to register after crossing the limit?

Thirty days from the date you became liable. Registering late is expensive in a specific way: you cannot claim input tax credit on purchases made before the effective date of registration, but you remain liable for tax on supplies already made after crossing the threshold.

I am exhibiting at a trade fair in another state for a week — do I need to register there?

Yes. A casual taxable person supplying in a state where they have no fixed place of business must register before commencing, regardless of turnover. The registration is temporary, valid for the period applied for up to ninety days and extendable, and it requires an advance deposit of the estimated tax liability when applying.

Does voluntary registration have a downside?

It starts the full return cycle immediately, and those returns continue every period even with nil turnover. Register voluntarily only where input credit or a customer requirement genuinely justifies the ongoing compliance.