GST registration threshold: when is GST registration mandatory?

1 min read

A business must register for GST once its aggregate turnover crosses a threshold, or immediately if it falls into a compulsory category. For a new company, the second rule often matters more than the first.

Turnover thresholds

Supplier	Most states	Special category states
Only goods (opted for higher limit)	₹40 lakh	₹20 lakh (some states ₹10 lakh)
Services, or goods and services	₹20 lakh	₹10 lakh

Aggregate turnover is calculated on an all-India basis for the same PAN, and includes taxable, exempt and export supplies, but not GST itself.

Compulsory registration regardless of turnover

Section 24 of the CGST Act requires registration from the first rupee for, among others:

Inter-state taxable supply of goods (inter-state supply of services up to the threshold is exempted)
Sellers through e-commerce operators who must collect tax at source (with limited exemptions)
Persons liable to pay tax under reverse charge
Casual taxable persons and non-resident taxable persons
Persons required to deduct TDS or collect TCS under GST
Input service distributors

Voluntary registration

Many startups register voluntarily even below the threshold, because B2B customers want GST invoices to claim input tax credit. The trade-off is monthly or quarterly returns from day one.

Frequently asked questions

Not mandatorily, but registering lets you claim refunds of input tax and file an LUT.

Within 30 days of becoming liable.

This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.