GST Registration Limit in India: Who Needs to Register?
Not every business must register under GST. Small suppliers below a turnover limit can stay unregistered, although some businesses must register regardless of turnover. Here is a plain summary.
Turnover limits for registration
| Type of supplier | Aggregate annual turnover limit |
|---|---|
| Suppliers of goods only (most states) | โน40 lakh |
| Suppliers of goods only, in certain special category states and Puducherry | โน20 lakh |
| Suppliers of services, or goods and services | โน20 lakh |
| Suppliers of services in Manipur, Mizoram, Nagaland and Tripura | โน10 lakh |
The higher โน40 lakh limit for goods is not available to everyone (for example, certain ice cream, pan masala and tobacco manufacturers). Check conditions with your CA.
When you must register regardless of turnover
- Making interstate supplies of goods (with limited exceptions)
- Selling through e-commerce operators (with certain exceptions)
- Casual taxable persons and non-resident taxable persons
- Persons liable to pay tax under reverse charge
- Persons who are required to deduct TDS or collect TCS under GST
Should you register voluntarily?
Benefits: you can charge GST and claim input tax credit, you look more credible to business customers, you can sell across states and many corporate buyers will only deal with registered suppliers.
Costs: you must issue tax invoices, file returns on time and maintain records. Late filing leads to fees and interest.
Composition scheme
Small businesses below a higher turnover limit may opt for the composition scheme and pay a small fixed percentage of turnover. They cannot claim input tax credit and cannot charge GST to customers. See composition scheme explained.
Different from registration: e-invoicing
E-invoicing is mandatory for businesses whose aggregate turnover exceeds โน5 crore (currently). Read e-invoicing explained.
Next steps after registration
- Issue invoices with GSTIN. Use our free GST invoice generator.
- Follow the invoice numbering rules.
- File returns and pay tax on time.
Limits and conditions change. Confirm on the official GST portal or with a qualified CA before deciding.