GST Registration Limit: ₹40 Lakh & ₹20 Lakh Rules
Definition
A business must register under GST once its aggregate turnover in a financial year crosses ₹40 lakh if it supplies only goods, or ₹20 lakh if it supplies services — with lower limits in some special-category states — or earlier if it falls in a compulsory registration category.
| Term | GST registration limit |
|---|---|
| In Hindi | GST पंजीकरण सीमा |
| Area | GST & tax |
| Search phrase | GST registration limit |
| Try it | GST number check |
GST पंजीकरण सीमा — हिंदी में अर्थ
किसी व्यवसाय को GST पंजीकरण तब लेना होता है जब वित्त वर्ष में उसका कुल टर्नओवर केवल माल बेचने पर ₹40 लाख या सेवाएँ देने पर ₹20 लाख पार करे — कुछ विशेष श्रेणी राज्यों में सीमा कम है — या पहले ही, यदि वह अनिवार्य पंजीकरण की श्रेणी में आता है।
The thresholds
Exclusively goods: ₹40 lakh, in the states that adopted the higher limit (a few kept ₹20 lakh, so check your state). Services, or goods and services together: ₹20 lakh. Special-category states have lower limits — as low as ₹20 lakh for goods and ₹10 lakh for services. The higher goods limit does not apply to suppliers of notified goods such as ice cream, pan masala and tobacco.
The test is aggregate turnover, counted PAN-wise across India: taxable, exempt and export supplies and inter-state supplies between your own branches — excluding GST itself and inward supplies taxed under reverse charge. Registration must be applied for within 30 days of becoming liable.
Compulsory registration regardless of turnover
Persons making inter-state taxable supplies of goods, casual taxable persons, persons liable to pay tax under reverse charge, e-commerce operators and others required to collect TCS, persons required to deduct TDS under GST, input service distributors, and non-resident taxable persons. Many small manufacturers also register voluntarily because B2B buyers want ITC.
Example
A Pune machining shop billed ₹38 lakh of job-work services in FY 2025-26. Job work is a service, so the ₹20 lakh limit applies — it should have registered within 30 days of crossing ₹20 lakh, not waited for ₹40 lakh.
Related tools and guides
Frequently asked questions
What is the GST registration limit for goods?
₹40 lakh aggregate turnover for businesses supplying only goods, in most states; lower in some special-category states.
What is the GST registration limit for services?
₹20 lakh, and ₹10 lakh in some special-category states.
Is exempt turnover counted for the limit?
Yes. Aggregate turnover includes exempt and export supplies, not just taxable ones.
Do I need GST to sell goods to another state?
Yes. Inter-state taxable supply of goods needs registration whatever the turnover.
Related terms
- Bill of supplyA bill of supply is the GST document issued instead of a tax invoice when no tax can be charged — by a composition taxpayer, or by a registered person supplying exempt goods or services. It shows no GST amount.
- Blocked credit under GST (Section 17(5))Blocked credit is GST paid on purchases that cannot be claimed as input tax credit even when used in business, because section 17(5) of the CGST Act specifically disallows it — such as food, most passenger cars and construction of buildings.
- Composition scheme (GST)The composition scheme is an optional, simpler GST scheme for small taxpayers: they pay tax at a low fixed percentage of turnover, file quarterly, but cannot charge GST on their invoices or claim input tax credit.
- GSTR-1 vs GSTR-3BGSTR-1 is the return of outward supplies — invoice-wise details of sales. GSTR-3B is the summary return in which tax is actually paid and input tax credit claimed. Both are filed by regular GST taxpayers.
- ITC reversal under GSTITC reversal means paying back input tax credit already claimed, or not claiming it, when the conditions for credit are not met — for example the supplier is not paid within 180 days, or inputs are used for exempt supplies.
- Nil-rated, exempt, zero-rated and non-GST supplyNil-rated supplies carry a 0% GST rate; exempt supplies are wholly exempted from GST; zero-rated supplies are exports and supplies to SEZs, where ITC is still allowed; non-GST supplies are items outside GST altogether, such as petrol and alcohol for human consumption.