GST Registration Limit —
₹40L or ₹20L?
The turnover threshold that makes GST registration mandatory, the lower special-category limits, who must register regardless of turnover, and how aggregate turnover is actually calculated.
GST registration becomes mandatory once your aggregate turnover in a financial year crosses ₹40 lakh for a supplier of goods or ₹20 lakh for a supplier of services in normal states (₹20 lakh and ₹10 lakh respectively in special-category states). E-commerce sellers, inter-state suppliers and persons liable under reverse charge must register from the first rupee — no threshold applies. You have 30 days to apply once the limit is crossed.
GST Registration Threshold Table 2025-26
Every common supplier type, with the turnover limit that triggers mandatory registration in normal and special-category states.
| Type of Supplier | Normal States | Special-Category States |
|---|---|---|
| Supplier of goods only | ₹40 lakh | ₹20 lakh |
| Supplier of services only | ₹20 lakh | ₹10 lakh |
| Mixed supply (goods + services) | ₹20 lakh | ₹10 lakh |
| E-commerce operators (Amazon, Zomato) | No threshold | No threshold |
| Sellers on e-commerce platforms | No threshold | No threshold |
| Inter-state suppliers of goods | No threshold | No threshold |
| Persons liable under reverse charge | No threshold | No threshold |
Limits apply to aggregate turnover in a financial year. The ₹40L goods threshold applies only to a pure goods supplier; any service supply pulls you to ₹20L. Registration thresholds were not changed by the GST 2.0 rate reform of 22 September 2025.
The higher ₹40 lakh limit applies solely if you supply goods and no services. The moment you provide even a small taxable service, your threshold drops to ₹20 lakh. Traders who add a service line (e.g. installation, AMC, consultancy) often cross the lower limit unknowingly.
Special-Category States (Lower Threshold)
Certain states have a lower GST registration threshold — ₹20 lakh for goods and ₹10 lakh for services. These are the notified special-category / hilly and North-East states for registration purposes:
- Manipur, Mizoram, Nagaland and Tripura — ₹10 lakh limit for both goods and services
- Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry and Telangana — ₹20 lakh (goods) / ₹10 lakh (services)
- Jammu & Kashmir and Assam have opted to keep the higher ₹40 lakh goods limit despite being special-category states
The special-category list for the registration threshold is not identical to the constitutional list. States such as Assam and J&K opted up to the ₹40 lakh goods limit, while a handful stay at ₹10 lakh. Always confirm your state’s notified limit before assuming you are exempt.
Not sure which threshold applies to your state and business?
Talk to a GST Expert →Who Must Register Regardless of Turnover
Under Section 24 of the CGST Act, the following must register even if turnover is below the threshold — the ₹40L/₹20L limit does not protect them:
- Inter-state suppliers of goods (any amount)
- E-commerce operators (Amazon, Flipkart, Zomato, Swiggy)
- Sellers supplying through an e-commerce platform
- Persons liable to pay tax under reverse charge (RCM)
- Casual taxable persons (temporary / event suppliers)
- Non-resident taxable persons
- Persons required to deduct TDS under GST
- Persons required to collect TCS (e-commerce operators)
- Input Service Distributors (ISD)
- Agents supplying on behalf of a registered person
- OIDAR service providers from outside India
- Persons notified by the Government
Any person selling goods through an e-commerce platform must obtain GST registration before listing, regardless of turnover — even a home-based seller with ₹2 lakh sales. Note: from Oct 2023, small intra-state suppliers of goods (below ₹40L) selling online enjoy a limited exemption, but most sellers still need a GSTIN. Confirm your case before you list.
Launching on an e-commerce platform or going inter-state?
Get Your GSTIN →What Counts as Aggregate Turnover?
The threshold is tested against aggregate turnover — the total value of all supplies made under the same PAN across all states and all business verticals in a financial year. It is a PAN-level figure, not per-branch and not per-business.
| Included in Aggregate Turnover | Excluded from Aggregate Turnover |
|---|---|
| Taxable supplies (domestic) | CGST, SGST, IGST and Cess charged |
| Exempt supplies | Value of inward supplies taxed under RCM |
| Exports / zero-rated supplies | Activities under Schedule III (non-supply) |
| Inter-state supplies | — |
| All supplies under the same PAN | — |
Aggregate turnover is computed on an all-India, PAN-wise basis — turnover of every branch, state and vertical is added together.
Goods trader — one PAN, two states
Service provider — single office
You can also register voluntarily below the threshold — useful to issue GST invoices to corporate clients, claim Input Tax Credit, or export as a zero-rated supply.
Registration Deadline & Late-Registration Penalty
| Event | Timeline / Consequence |
|---|---|
| Cross the turnover threshold | Apply for registration within 30 days |
| Effective date of registration | Date of liability (when limit was crossed), not the application date |
| Aadhaar-authenticated application | GSTIN normally issued in 3-7 working days |
| Failure to register | Tax evaded + 10% penalty (minimum ₹10,000) |
| Deliberate / fraudulent non-registration | Tax evaded + 100% penalty |
A casual or non-resident taxable person must apply at least 5 days before starting business.
If you delay past the 30-day window, GST for the period between crossing the limit and getting registered is still payable, but you cannot claim Input Tax Credit on inputs for that gap. Late registration also invites penalty and interest at 18% under Section 50.
Crossed the limit or about to? Get registered before the 30-day clock runs out.
Register for GST Now →Frequently Asked Questions
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