GST Registration Limit — Mandatory Turnover Threshold 2026

Updated: 3 June 2026 | CGST Act, 2017 | As amended up to 2026

GST registration is mandatory when annual aggregate turnover exceeds ₹40 lakh for goods suppliers and ₹20 lakh for service providers (₹20L and ₹10L respectively for special category states like North-East and hill states). E-commerce operators and businesses making inter-state supplies must register regardless of turnover.

Threshold Summary
₹40L threshold for goods only | ₹20L for services | Special category states (NE, hills): ₹20L goods, ₹10L services | E-commerce: mandatory regardless of turnover.

GST Registration Turnover Thresholds at a Glance

₹40L

Goods Suppliers
Normal States

₹20L

Service Providers
Normal States

₹20L / ₹10L

Goods / Services
Special Category States

No Threshold

E-commerce &
Inter-state Suppliers

GST Registration Threshold Table 2026

Business Type	Normal States Threshold	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 (like Amazon, Flipkart)	Mandatory — no threshold
Suppliers through e-commerce platforms	Mandatory — no threshold
Inter-state suppliers of goods or services	Mandatory — no threshold
Input Service Distributors (ISD)	Mandatory
TDS deductors (Govt / PSU / specified entities)	Mandatory
TCS collectors (e-commerce operators)	Mandatory

Thresholds apply to aggregate turnover in a financial year. Once threshold is crossed, registration must be obtained within 30 days.

Special Category States (Reduced Threshold)

These states have a lower GST registration threshold — ₹20 lakh for goods and ₹10 lakh for services:

Arunachal Pradesh Assam Himachal Pradesh Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Uttarakhand Jammu & Kashmir Puducherry

Who Must Register Regardless of Turnover

Even if annual turnover is below the threshold, GST registration is compulsory for these categories:

Inter-state suppliers of goods and services (any amount)
E-commerce operators (platforms like Amazon, Flipkart, Zomato, etc.)
Suppliers who sell through e-commerce platforms
Casual taxable persons (non-resident temporary suppliers)
Non-resident taxable persons
Agents of a registered taxable person
Persons required to deduct TDS under GST (Government departments, PSUs)
Persons required to collect TCS under GST (e-commerce operators)
Input Service Distributors (ISD)
Persons supplying under reverse charge mechanism
Persons supplying online information and database access / retrieval (OIDAR) services from outside India to Indian consumers

What is Aggregate Turnover? (Calculation)

Aggregate turnover is the combined value of all supplies made under the same PAN across all states and all business verticals during a financial year.

Aggregate Turnover = All taxable supplies + Exempt supplies + Zero-rated supplies (exports) + Inter-state supplies MINUS taxes paid (CGST, SGST, IGST, Cess) + Value of inward supplies taxable under reverse charge.

Included in Aggregate Turnover	Excluded from Aggregate Turnover
Taxable supplies (domestic)	CGST, SGST, IGST, and Cess charged on supply
Exempt supplies	Value of inward supplies taxable under reverse charge
Exports (zero-rated supplies)	Activities not constituting supply under Schedule III
Inter-state supplies	—
Supplies under same PAN (all states)	—

Registration Deadline & Penalty for Late Registration

Event	Timeline / Consequence
Cross turnover threshold	Apply for GST registration within 30 days
Effective date of registration	Date of liability (date threshold was crossed), not application date
Penalty for failure to register	Tax evaded + 10% penalty (minimum ₹10,000)
Fraud / deliberate non-registration	Tax evaded + 100% penalty
Processing time (new registration)	7 working days (Aadhaar-authenticated) / up to 30 days otherwise

Frequently Asked Questions

If I sell through Amazon, do I need GST registration?

Yes. All e-commerce sellers — regardless of turnover — must register for GST. E-commerce operators like Amazon and Flipkart collect TCS under GST and are required by law to collect only from GST-registered sellers. Even if your turnover is below ₹40 lakh, you must register before listing on any e-commerce platform.

I have multiple businesses — is the threshold calculated separately for each?

No. The GST registration threshold is based on aggregate turnover under the same PAN, across all states and all businesses. If you run a shop in Delhi and a consulting firm in Mumbai under the same PAN, the combined turnover of both is considered to determine if registration is mandatory.

Can a composition dealer register below ₹40L threshold?

Yes, voluntary GST registration is allowed even if turnover is below the threshold. The composition scheme is available for registered suppliers with aggregate turnover up to ₹1.5 crore (₹75 lakh for services). Under composition, you pay GST at flat rates and file quarterly returns, but cannot collect GST from customers or claim ITC.

I crossed ₹40L this month — when must I register?

You must apply for GST registration within 30 days of crossing the turnover threshold. The effective date of registration (and your GSTIN) will be the date of liability — i.e., the date you first crossed the threshold — not the date of your application. Late registration may attract penalties for the period in between.

Is GST registration required for a new startup with zero revenue?

GST registration is not mandatory if turnover is below the threshold. However, voluntary registration is beneficial if you need to issue GST invoices to corporate clients, claim Input Tax Credit (ITC) on business purchases, or export goods/services (zero-rated supply requires GSTIN). You can voluntarily register at any time on the GST portal.

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