GST Registration Threshold — Turnover Limits & Mandatory Cases 2026

Updated: 3 June 2026

GST registration is mandatory when annual aggregate turnover exceeds: ₹40 lakh (goods suppliers, most states); ₹20 lakh (service providers, most states); ₹10 lakh (special category states — North-East + Uttarakhand, for services). Regardless of turnover, registration is mandatory for: inter-state suppliers, e-commerce operators and sellers, casual taxable persons, input service distributors, OIDAR service providers (foreign digital services to India), and persons paying GST under Reverse Charge Mechanism. Voluntary registration is also allowed below the threshold — beneficial for those wanting to claim ITC or serve GST-registered B2B clients.

₹40L / ₹20L ₹40 lakh for goods, ₹20 lakh for services — GST registration threshold for most states in 2025-26.

GST Registration Thresholds by State Category

Supplier Type	Normal States	Special Category States
Goods (manufacturer / trader)	₹40 lakh	₹20 lakh
Services (all service providers)	₹20 lakh	₹10 lakh
Both goods + services (mixed)	₹20 lakh (service threshold applies)	₹10 lakh
Composition Scheme — goods	₹1.5 crore turnover limit	₹75 lakh
Composition Scheme — services	₹50 lakh turnover limit	₹50 lakh

Special category states: Arunachal Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand, and J&K (for services threshold of ₹10L). Note: Manipur, Mizoram, Nagaland, and Tripura have ₹10L threshold for goods as well.

Mandatory GST Registration — Regardless of Turnover

Category	Why Mandatory	Reference
Inter-state supplier of goods	Any supply crossing state lines — even ₹1 — requires registration	Section 24(i)
Inter-state supplier of services	Exempt if turnover below ₹20L (services only, per 2019 amendment)	Section 24(i) + Notification
E-commerce operators (Flipkart, Amazon, Meesho)	Collect TCS; operate marketplace; must register in every state	Section 24(ix)
Sellers on e-commerce platforms	Cannot sell on marketplace without GSTIN; TCS tracking requires GST no.	Section 24(ix)
Casual taxable persons	Persons doing temporary business in a state where not normally resident	Section 24(ii)
Non-resident taxable persons	Foreign entities supplying taxable goods/services in India	Section 24(iii)
Input Service Distributors (ISD)	Distribute ITC to branches — requires separate ISD registration	Section 24(vii)
Reverse Charge recipients	Any person paying GST under RCM must register	Section 24(iii)
OIDAR service providers	Foreign digital service providers (Netflix, Google, etc.) supplying to unregistered persons in India	Section 14 IGST
TDS deductors (Section 51)	Government/PSU entities deducting 2% TDS on payments above ₹2.5L	Section 24(vi)

Frequently Asked Questions

When is GST registration mandatory?

GST registration is mandatory in two scenarios: (1) Threshold-based: when annual aggregate turnover exceeds ₹40 lakh for goods (most states), ₹20 lakh for services (most states), or ₹10 lakh in special category states (North-East + hill states) for services. (2) Mandatory regardless of turnover: inter-state suppliers of goods or services, e-commerce operators and sellers on e-commerce platforms, casual taxable persons, non-resident taxable persons, Input Service Distributors, persons liable to pay GST under Reverse Charge Mechanism (RCM), OIDAR service providers from outside India to non-GST registered persons in India, and persons required to deduct TDS under Section 51. Voluntary registration is also allowed below the threshold.

What is the GST registration limit for services in 2025-26?

For service providers, the GST registration threshold is ₹20 lakh annual aggregate turnover for most states. This limit applies to all service providers — consultants, lawyers, architects, IT professionals, tutors, designers, and all other service categories. For special category states (Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand), the threshold is ₹10 lakh. Note: The ₹20L threshold is aggregate turnover — it includes all taxable supplies, exempt supplies, exports, and inter-state supplies made from all registration points under the same PAN across India.

Do I need GST registration for freelancing?

If your freelance income (gross fees received, not profit) is below ₹20 lakh in a year and all your clients are in India, GST registration is not mandatory. You can operate without GST, issue regular invoices without GST, and your clients pay you without GST. However, if you serve foreign clients (export of services), the ₹20 lakh threshold still technically applies — but since exports are zero-rated, many tax advisors recommend voluntary registration to claim ITC refunds on business expenses like software, internet, and equipment. Once registered, you must file GSTR-1 and GSTR-3B monthly or quarterly.

Does an e-commerce seller need GST registration?

Yes — e-commerce sellers must register for GST regardless of turnover. This is one of the mandatory registration categories under Section 24 of the CGST Act. If you sell on Amazon, Flipkart, Meesho, Myntra, or any other e-commerce marketplace, you need a GSTIN to list products and receive payments. The ₹40 lakh / ₹20 lakh threshold does NOT apply to e-commerce sellers. The e-commerce operator (Amazon, Flipkart) collects TCS (Tax Collected at Source) at 1% on your sales, which can only be offset against your GST liability if you are registered. Without GST registration, you cannot legally sell on e-commerce platforms.

What is the GST Composition Scheme threshold?

The Composition Scheme threshold is ₹1.5 crore annual aggregate turnover for goods suppliers and manufacturers, and ₹50 lakh for service providers (under CGST Rule 7). Under the Composition Scheme: you pay a flat tax rate (1% for goods traders, 5% for restaurants, 6% for service providers) on turnover — instead of regular 18% GST. You cannot collect GST from customers (no tax invoice — only bill of supply). You cannot claim ITC. You file quarterly GSTR-4 instead of monthly returns. You cannot make inter-state supplies. The scheme is suitable for small businesses with mostly local, B2C customers who want simplified compliance.

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