What is the GST registration turnover limit?

By the India Law Simplified editorial team · Verified against the bare Acts & official portals · Updated 2026-07-28 · ~4 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.

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.