GST Registration Turnover Limit in India 2026
You must register for GST once your aggregate turnover crosses the threshold that applies to you: ₹40 lakh for a supplier of goods in a normal-category state, ₹20 lakh for a service provider, and lower limits in special-category states. Certain businesses must register from day one regardless of turnover. This guide sets out exactly where you stand.
If you already know you need to register and just want the steps, see our GST registration process guide. This article answers the earlier question: do you have to register at all, and from when.
The Threshold Is Based on Aggregate Turnover
The registration limit is not measured against your sales in a single state or a single line of business. It is measured against your aggregate turnover, computed on a PAN-India basis.
Aggregate turnover includes:
- Taxable supplies
- Exempt supplies
- Exports
- Inter-state supplies
- Turnover of all GSTINs registered under the same PAN, added together
It excludes:
- The GST charged on your invoices (CGST, SGST, IGST and cess)
- The value of inward supplies on which you pay tax under reverse charge
Mis-calculating aggregate turnover is the most common registration mistake. Business owners often count only their taxable sales in their home state and conclude they are below the limit. But exempt supplies, exports and the turnover of every GSTIN on the same PAN all count. Add them together on a PAN-India basis before deciding you are safe. Under-counting means you keep trading unregistered past the date you became liable, which creates exposure to penalties and back-dated tax.
Goods vs Services, Normal vs Special-Category States
Two variables decide your threshold: whether you supply goods or services, and whether you operate from a normal-category or special-category state.
| Normal-category states | Special-category states | |
|---|---|---|
| Supplier of goods | ₹40,00,000 | ₹20,00,000 |
| Supplier of services | ₹20,00,000 | ₹10,00,000 |
Comparison
Goods vs Services: Which Limit Applies to You
| Parameter | Supplier of goods | Supplier of services |
|---|---|---|
| Normal-category state threshold | ₹40 lakh aggregate turnover | ₹20 lakh aggregate turnover |
| Special-category state threshold | ₹20 lakh aggregate turnover | ₹10 lakh aggregate turnover |
| Basis of measurement | PAN-India aggregate turnover | PAN-India aggregate turnover |
| Voluntary registration below limit | Allowed | Allowed |
Takeaway: Goods suppliers get the higher ₹40 lakh limit in normal states; service providers register at the lower ₹20 lakh limit. Both halve in special-category states.
Source: CGST Act thresholds; GST Council notifications
The ₹40 lakh goods threshold has not been changed by the GST Council, so a supplier of goods in a normal-category state continues to enjoy the higher limit.
Which States Are Special-Category?
Special-category states carry the lower ₹20 lakh (goods) and ₹10 lakh (services) thresholds. They include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand, along with certain other north-eastern states.
If you operate from a north-eastern or hill state, do not assume the ₹40 lakh figure applies to you. For certain special-category and north-eastern states the goods limit is ₹20 lakh and the services limit is ₹10 lakh. Confirm your specific state's category before relying on a threshold.
When You Must Register Regardless of Turnover
Section 24 of the CGST Act lists persons who must register irrespective of turnover. If you fall into any of these categories, the ₹40 lakh or ₹20 lakh threshold does not protect you. You register from the first day you carry on that activity.
- Persons making an inter-state taxable supply of goods (there is threshold relief for inter-state supply of services)
- E-commerce operators, and persons supplying through an e-commerce operator, subject to certain exemptions
- Persons liable to pay tax under reverse charge
- Casual taxable persons making taxable supplies
- Non-resident taxable persons making taxable supplies
- Input service distributors
- Persons required to deduct TDS or collect TCS under GST
- Agents who make taxable supplies on behalf of other taxable persons
- Suppliers of online information and database access or retrieval (OIDAR) services
Note the goods-versus-services asymmetry for inter-state supply. A person making an inter-state taxable supply of goods must register from the start, with no threshold. A person making an inter-state supply of services gets threshold relief and can stay unregistered up to the applicable limit. Mixing these up is a frequent and costly error for online sellers.
Do I Need to Register? A Decision Path
Step-by-Step Guide
Deciding Whether You Must Register for GST
Check the Section 24 list first
Are you an inter-state supplier of goods, an e-commerce operator or seller through an ECO, a casual or non-resident taxable person, an ISD, a TDS/TCS deductor, an agent, an OIDAR supplier, or liable under reverse charge? If yes, register regardless of turnover.
CompulsoryIdentify goods or services
If Section 24 does not catch you, determine whether you mainly supply goods or services. This decides whether your threshold is the higher (goods) or lower (services) figure.
ClassifyIdentify your state category
Confirm whether you operate from a normal-category state or a special-category / north-eastern state. Special-category states halve the threshold.
LocateCompute aggregate turnover PAN-India
Add taxable, exempt, export and inter-state supplies across all GSTINs on your PAN. Exclude GST charged and inward reverse-charge value.
CalculateCompare against your threshold
₹40 lakh (goods, normal), ₹20 lakh (services normal, or goods special), or ₹10 lakh (services special). Cross it and you must register; stay below and you may still register voluntarily.
DecideSource: CGST Act Sections 22 and 24; GST Council notifications
Voluntary Registration Below the Threshold
You can register voluntarily even if your aggregate turnover is below the applicable limit. Businesses do this to claim input tax credit on purchases, to sell to buyers who insist on a GST invoice, or to onboard onto e-commerce and B2B platforms that require a GSTIN. Once registered, you take on the full compliance calendar, so weigh the input-credit benefit against the monthly return-filing obligation before opting in.
What Happens Once You Cross the Line
The threshold is a trigger, not a grace period. Liability arises when you cross the limit, and continuing to supply without registering leaves you exposed to penalties and to paying tax you never collected from your customers. The practical discipline is to track your rolling aggregate turnover through the year rather than checking it once at year-end, so you apply for registration in the window around the date you cross, not months later.
Frequently Asked Questions
What is the GST registration limit for goods in 2026?
₹40,00,000 of aggregate turnover for a supplier of goods in a normal-category state. In special-category states the limit is ₹20,00,000. The GST Council has not changed the ₹40 lakh goods threshold.
What is the GST registration limit for service providers?
₹20,00,000 of aggregate turnover in normal-category states, and ₹10,00,000 in special-category states. Service providers register at a lower limit than goods suppliers.
What counts towards aggregate turnover?
Taxable supplies, exempt supplies, exports and inter-state supplies, added across all GSTINs on the same PAN on a PAN-India basis. It excludes the GST charged on your invoices and the value of inward supplies taxed under reverse charge.
Which states have the lower ₹20 lakh and ₹10 lakh limits?
Special-category states, which include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand, along with certain other north-eastern states. Confirm your specific state's category before relying on a figure.
Do I have to register if I sell inter-state?
For an inter-state taxable supply of goods, yes, you must register from the start under Section 24 regardless of turnover. For an inter-state supply of services there is threshold relief, so you can stay unregistered up to the applicable limit.
Can I register for GST voluntarily if I am below the threshold?
Yes. Voluntary registration is allowed below the threshold, typically to claim input tax credit or to meet buyer and platform requirements. You then take on the full return-filing obligations of a registered person.
Who must register regardless of turnover?
Under Section 24 this includes inter-state suppliers of goods, e-commerce operators and sellers through an ECO, persons liable under reverse charge, casual and non-resident taxable persons, input service distributors, TDS/TCS deductors, agents supplying on behalf of others, and OIDAR suppliers.
Getting It Right the First Time
Most registration disputes trace back to one of two errors: under-counting aggregate turnover, or missing a Section 24 category that made registration compulsory from day one. Get the classification right, track your turnover through the year, and the timing looks after itself. When you are ready, our GST registration process guide covers the documents and steps, and the GST 2.0 rate structure guide explains the slabs you will charge once registered.
This guide is based on the registration thresholds and compulsory-registration provisions of the CGST Act, principally Sections 22 and 24, together with the GST Council notifications setting the ₹40 lakh, ₹20 lakh and ₹10 lakh aggregate turnover limits and the list of special-category states. Because a state's category and specific compulsory-registration exemptions can turn on official notifications, confirm your position against the current CGST Act provisions and CBIC notifications before deciding whether and when to register.
Work with the Trusted Tax & Compliance Services in Kondapur, Hyderabad - Tax Garden for expert GST filing, ITR, TDS, ROC, and startup compliance support.
Frequently Asked Questions: Tax Services in Kondapur & Hyderabad
What makes Tax Garden a preferred GST consultant in Kondapur?
Tax Garden is ISO 9001:2015 certified and backs every engagement with Kavach, our ₹50,000 error-protection cover. Our flat-fee, no-surprise pricing and dedicated account manager make us a compliance partner for startups and SMEs in Kondapur's HITEC City corridor.
Why is Tax Garden a trusted tax compliance partner in Hyderabad?
Trust comes from three pillars at Tax Garden. First, transparency: you know the exact fee before you sign up, and it never changes mid-year. Second, certified expertise: our compliance team is qualified, and the firm holds ISO 9001:2015 certification. Third, accountability: Kavach, our unique error-protection plan, covers up to ₹50,000 in service charges for any clerical mistake made by our team.
Is there a reliable tax consultant near me in Kondapur?
Yes. Tax Garden's office is in Kondapur itself (CWS One Building, Hanuman Nagar). You can book an in-person consultation or get everything done fully online via WhatsApp and our client portal. We serve walk-in clients by appointment and remote clients across all of Hyderabad and Telangana.
I want a friendly CA who explains things clearly. Is that Tax Garden?
Absolutely. Every client gets a dedicated account manager reachable on WhatsApp, plain-language explanations of what is filed and why, and proactive reminders before every deadline. No jargon, no surprises, just friendly, expert compliance support from Kondapur.
Where is Tax Garden located in Hyderabad?
Tax Garden is located at 4th Floor, South Block, CWS One Building, Hanuman Nagar, Kondapur, Hyderabad, Telangana 500084. We serve clients across Kondapur, HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, and all of Hyderabad.
Can I get GST filing and registration services in Kondapur?
Yes. Tax Garden offers end-to-end GST services from our Kondapur office: GST registration, GSTR-1, GSTR-3B, GSTR-9 annual returns, ITC reconciliation, e-invoicing setup, and GST notice handling for businesses of all sizes in Kondapur and Hyderabad.
Do you file ITR for salaried employees and businesses in Hyderabad?
Yes. Our Kondapur team files ITR for salaried employees, freelancers, consultants, business owners, LLPs, and companies across Hyderabad. We cover ITR-1 through ITR-6 with complete Chapter VI-A deduction reconciliation, AIS reconciliation, and proactive deadline management.
Which areas in Hyderabad does Tax Garden serve?
Tax Garden's Kondapur office serves clients across Hyderabad including HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, Begumpet, Secunderabad, Ameerpet, Kukatpally, Uppal, LB Nagar, and all of Telangana. Most services are available fully online.
What compliance services does Tax Garden offer for startups in Kondapur?
Tax Garden is a compliance partner for startups in Kondapur and Hyderabad's HITEC City corridor. We handle company incorporation, GST registration, TDS filings, payroll, ROC annual filings, director KYC, and annual ITR filing, all under one flat-fee plan.
How does Tax Garden's compliance model compare to traditional hourly accounting services in Hyderabad?
Unlike traditional accounting practices that charge hourly and are difficult to reach, Tax Garden operates on flat-fee subscription plans with a dedicated account manager, monthly compliance updates, and WhatsApp-first communication. Our AI-powered workflow catches errors before filings are submitted, and Kavach error-protection ensures you are never left alone if something goes wrong.