The turnover limits
| Where your business is | Goods only | Services, or goods and services |
|---|---|---|
| Most states and Union territories | ₹40 lakh | ₹20 lakh |
| Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana, Uttarakhand | ₹20 lakh | ₹20 lakh |
| Manipur, Mizoram, Nagaland, Tripura | ₹20 lakh | ₹10 lakh |
The ₹40 lakh limit for goods comes from Notification 10/2019-Central Tax, which the ten states in the lower rows did not adopt. It applies only if you supply goods alone; a business that supplies any services, other than exempt interest income, uses the ₹20 lakh limit. Choosing between composition and the regular scheme? See GST composition vs regular.
What counts as aggregate turnover
Aggregate turnover is the total value of all your supplies across India under the same PAN: taxable, exempt and export supplies, and inter-state supplies between your own branches. It excludes the GST itself and the value of purchases on which you pay tax under reverse charge.
Two points catch people out. Exempt supplies count, so a business with mostly exempt sales can still cross the limit. And the test is on your PAN, so turnover from all your businesses and states is added together.
When you must register whatever your turnover
Section 24 of the CGST Act lists the cases where the turnover limit does not apply. The ones that matter most to small businesses:
- Inter-state supply of goods. Selling goods to a customer in another state requires registration from the first sale. Inter-state supply of services below the limit does not.
- Casual taxable persons, such as a business taking a stall at an exhibition in another state.
- Non-resident taxable persons making taxable supplies in India.
- Persons paying tax under reverse charge.
- E-commerce operators who collect tax at source or pay tax on behalf of suppliers.
- Input service distributors, and deductors of GST TDS.
- Suppliers of online information and database access services from outside India to unregistered persons in India.
Selling on Amazon, Flipkart or other platforms
Since 1 October 2023, a seller of goods through an e-commerce platform can stay unregistered below the turnover limit if all its sales are within its own state, subject to conditions, including enrolment with the platform (Notification 34/2023-Central Tax). Selling goods to another state through a platform still needs registration. Service providers selling through a platform, other than services on which the platform itself pays the tax, need not register below the limit.
Marketplaces often ask for a GSTIN as a matter of policy anyway. See GST registration for e-commerce sellers.
Freelancers and exporters of services
A freelancer or consultant supplying only services, including to clients abroad, does not have to register until aggregate turnover, including exports, crosses ₹20 lakh (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura), under Notification 10/2017-Integrated Tax. Once registered, exports of services are zero-rated, and you can export without paying IGST under a Letter of Undertaking.
Should you register voluntarily?
Registration below the limit is allowed. It makes sense if your customers are businesses that want input tax credit, if you buy a lot of taxable inputs and want to claim credit on them, or if platforms and large clients insist on a GSTIN. It does not suit a business selling mostly to consumers, where GST would simply raise the price. Once registered, you file returns every month or quarter even with no sales, and late returns carry a fee; see our GST late fee calculator.
A small business that registers can choose the composition scheme, paying tax at a low flat rate on turnover up to ₹1.5 crore (₹75 lakh in some states), or ₹50 lakh for services, without claiming input tax credit. See GST composition.
How and when to apply
- Deadline: within 30 days of becoming liable.
- Form: GST REG-01 on the GST portal, with Aadhaar authentication of the proprietor, partners or directors.
- Documents: PAN, Aadhaar and photos of the people responsible, proof of the place of business and bank details.
- Fee: no government fee.
Our GST registration service starts from ₹999. For the full process, see GST registration: documents, fees and timeline. To work out GST on an invoice, use our GST calculator.
Frequently asked questions
What is the GST registration limit in 2026?
₹40 lakh of aggregate turnover for a business supplying only goods, and ₹20 lakh for services. In Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and Uttarakhand the goods limit is ₹20 lakh, and in Manipur, Mizoram, Nagaland and Tripura it is ₹20 lakh for goods and ₹10 lakh for services.
Is GST registration mandatory for freelancers?
Not until aggregate turnover, including export receipts, crosses ₹20 lakh (₹10 lakh in four north-eastern states). Supplying services to clients in other states or abroad does not by itself require registration.
Do I need GST registration to sell on Amazon or Flipkart?
Not if you sell goods only within your own state and stay below the turnover limit, under conditions in force since 1 October 2023. Selling goods to other states requires registration. Platforms may still ask for a GSTIN.
Does exempt turnover count towards the limit?
Yes. Aggregate turnover includes exempt supplies, exports and inter-state supplies, for all businesses under the same PAN.
Is there a fee for GST registration?
No. The government charges nothing for GST registration.
How soon must I apply after crossing the limit?
Within 30 days of becoming liable to register.
About the author
Regikart CA Team
Chartered Accountants at Regikart. Want to discuss this in the context of your business?
