When to Register for GST: Rs 40 Lakh vs Rs 20 Lakh Limits

GST Registration Turnover Limit in India 2026

You must register for GST once your aggregate turnover crosses the threshold that applies to you: Rs. 40 lakh for a supplier of goods in a normal-category state, Rs. 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

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.

The Rs. 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 Rs. 20 lakh (goods) and Rs. 10 lakh (services) thresholds. They include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand, along with certain other north-eastern states.

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 Rs. 40 lakh or Rs. 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

Do I Need to Register? A Decision Path

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.

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 Rs. 40 lakh, Rs. 20 lakh and Rs. 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.