GST registration becomes mandatory once your aggregate turnover crosses ₹40 lakh for a supplier of goods or ₹20 lakh for a supplier of services in most states. In special-category states the limits fall to ₹20 lakh (goods) and ₹10 lakh (services). Separately, some businesses — inter-state suppliers, e-commerce sellers, casual and non-resident persons, and those under Reverse Charge — must register from the first rupee, regardless of turnover.
GST Registration Threshold by State & Supply Type
The turnover limit depends on whether you supply goods, services or both, and on the state category. See the current registration limits below.
| Supplier type | Normal states | Special-category states |
|---|---|---|
| Goods — manufacturer / trader | ₹40 lakh | ₹20 lakh |
| Services — all service providers | ₹20 lakh | ₹10 lakh |
| Goods + services (mixed supply) | ₹20 lakh | ₹10 lakh |
| Composition — goods / manufacturer | ₹1.5 crore | ₹75 lakh |
| Composition — service provider | ₹50 lakh | ₹50 lakh |
Special-category states: Manipur, Mizoram, Nagaland, Tripura (₹10L for goods too), plus Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry & Telangana for the ₹20L goods / ₹10L services limits. Thresholds were not changed by the GST 2.0 rate rationalisation (eff 22 Sep 2025).
If you supply both goods and services, the lower ₹20 lakh (services) threshold applies — you do not get the ₹40 lakh goods limit. A trader who also earns any service income (commission, freight, installation) is therefore assessed against ₹20 lakh, not ₹40 lakh.
Not sure which threshold applies to your business?
Talk to a GST Expert →When Registration Is Mandatory — Regardless of Turnover
The ₹40L / ₹20L limits are only one route to registration. Under Section 24 of the CGST Act, several categories must register from their very first supply, even with zero turnover:
| Category | Why mandatory | Reference |
|---|---|---|
| Inter-state supplier of goods | Any supply crossing a state line needs registration | Section 24(i) |
| E-commerce sellers & operators | No listing / TCS handling without a GSTIN | Section 24(ix) |
| Casual taxable person | Temporary business in a state you are not resident in | Section 24(ii) |
| Non-resident taxable person | Foreign entity making taxable supplies in India | Section 24(iii) |
| Reverse-charge (RCM) payers | Anyone liable to pay GST under RCM | Section 24(iii) |
| Input Service Distributor (ISD) | Distributing ITC to branches needs ISD registration | Section 24(vii) |
| TDS deductors | Govt / PSU deducting 2% TDS on eligible contracts | Section 24(vi) |
| OIDAR providers | Overseas digital services to unregistered persons in India | Section 14, IGST Act |
Inter-state supply of services is exempt below ₹20L (2019 amendment); the from-rupee-one rule mainly bites inter-state goods.
- Cross the turnover limit in a financial year
- Sell on Amazon / Flipkart / Meesho
- Supply goods to another state
- Pay GST under Reverse Charge
- Act as a casual / non-resident supplier
- Want ITC or B2B credibility (voluntary)
Selling online or across states? Get registered the right way.
Start GST Registration →What Counts as "Aggregate Turnover"?
The threshold is tested on aggregate turnover — an all-India, PAN-level figure, not a per-state or per-branch number. It is wider than most people expect.
- Includes — taxable supplies, exempt supplies, exports and inter-state supplies, computed on the same PAN across every state.
- Excludes — GST itself (CGST/SGST/IGST/cess) and the value of inward supplies taxed under Reverse Charge.
- Once any registration point under the PAN crosses the limit, GST registration is triggered for that business.
Aggregate turnover includes exempt and export income. A freelancer with ₹15L taxable fees plus ₹6L of exempt receipts has crossed ₹20L and must register — a trap that catches many small service providers and exporters.
Use our GST calculator to check tax on invoices, and see GST return filing for what happens after you register.
Composition Scheme & Voluntary Registration
Above the registration limit but still small? The composition scheme lets you pay a flat rate on turnover up to ₹1.5 crore (goods) or ₹50 lakh (services), with quarterly CMP-08 and annual GSTR-4 instead of monthly returns.
Below the threshold — optional
- Registration not mandatory
- Can register voluntarily to claim ITC
- Useful for B2B / exporter credibility
- No returns unless you opt in
Above the threshold — mandatory
- Must register within 30 days
- File GSTR-1 & GSTR-3B (or QRMP)
- Charge GST & issue tax invoices
- Can pick composition if eligible
Voluntary registration below the limit is common for freelancers and exporters who want to claim input tax credit on software, rent and equipment, or to bill GST-registered clients cleanly.
Frequently Asked Questions
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