Confused about whether your business needs GST registration? We break down the ₹40 lakh threshold rule, special category state limits, and exactly when registration becomes mandatory.
Who Needs GST Registration?
The Goods and Services Tax (GST) registration threshold in India depends on your annual turnover and the type of goods or services you provide.
Standard Threshold — ₹40 Lakhs
Most businesses supplying goods must register for GST when their aggregate annual turnover exceeds ₹40 lakhs.
Service Providers — ₹20 Lakhs
Businesses providing services have a lower threshold of ₹20 lakhs in most states.
Special Category States — ₹10 Lakhs
States like Manipur, Mizoram, Nagaland, and Tripura have a threshold of ₹10 lakhs for both goods and services.
Mandatory Registration (No Threshold)
Certain businesses must register regardless of turnover:
- Inter-state suppliers of goods
- E-commerce operators
- Businesses registered under the previous tax regime (VAT/Service Tax)
- Non-resident taxable persons
- Input Service Distributors
How to Calculate Your Aggregate Turnover
Aggregate turnover includes:
- All taxable supplies
- Exempt supplies
- Exports
- Inter-state supplies
It excludes inward supplies on which you pay tax under reverse charge.
What Happens If You Miss the Deadline?
Failing to register when required can result in a penalty equal to 10% of the tax amount due (minimum ₹10,000), or 100% in case of deliberate evasion.
Pro tip: Use our free GST threshold calculator to instantly check your compliance status based on your current monthly sales.
Summary
| Business Type | Most States | Special Category States |
|---|---|---|
| Goods | ₹40 Lakhs | ₹10 Lakhs |
| Services | ₹20 Lakhs | ₹10 Lakhs |
| Inter-state goods | Mandatory | Mandatory |
Always consult a qualified CA for advice specific to your business situation.