Whether you need GST registration comes down to one number: your aggregate turnover for the year. Cross the limit and registration is compulsory. Stay under it and you usually have a choice. This page gives you the limits that apply now, the states where they are lower, and the situations where the limit does not matter at all because you must register from your first sale.
- Goods only: ₹40 lakh a year in most states. Services, or goods and services together: ₹20 lakh.
- The limit is halved in a few north-eastern states, and the ₹40 lakh goods limit does not apply in ten states at all.
- Some businesses must register whatever their turnover, but inter-state service providers and small online sellers have exemptions most guides miss.
- Under the limit, voluntary registration can still pay off if your buyers are businesses or you have GST to reclaim on your costs.
The turnover limits that apply now
Your liability depends on aggregate turnover, not profit and not just your taxable sales. We explain what goes into that number in the next section. First, the limits.
If you supply only goods, you must register once your aggregate turnover crosses ₹40 lakh in a financial year. If you supply services, or a mix of goods and services, the limit is ₹20 lakh. In a small group of states the limits are lower, which the table below sets out in full.
These figures have not changed since 1 April 2019. If you have seen a different number described as a new limit for this year, it is wrong. The ₹40 lakh goods limit comes from a 2019 notification and still stands.
| Who you are | Normal states | Lower-limit states |
|---|---|---|
| Goods only | ₹40 lakh | ₹20 lakh, or ₹10 lakh in four states |
| Services, or goods and services | ₹20 lakh | ₹10 lakh |
| Must register from the first rupee | See “who must register whatever their turnover” below | |
The ₹10 lakh states are Manipur, Mizoram, Nagaland and Tripura. For goods only, six more states cap the limit at ₹20 lakh instead of ₹40 lakh: Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and Uttarakhand. The next section but one lists these in full.
What counts as aggregate turnover
Aggregate turnover is wider than the sales you charge GST on. It is the total of all your supplies in a year: taxable sales, exempt sales, exports, and sales made between states, added up across every GST registration held under the same PAN. It leaves out the GST itself, and it leaves out purchases on which you pay tax under reverse charge.
Two points catch people out. First, it is measured across your whole PAN, not one shop or one state. If you run branches in three states under one PAN, you add all three together to test the limit, even if no single branch is over it on its own. Second, exempt sales count. A business selling both taxable and exempt goods counts both towards the limit.
Once you know you have to register, the paperwork is the next question: see what documents GST registration needs.
When the ₹40 lakh limit does not apply to you
The ₹40 lakh figure is only for businesses that supply goods and nothing else. Three things take it away and drop you back to ₹20 lakh, or lower.
You supply any services. The moment services are part of your business, even alongside goods, your limit is ₹20 lakh, not ₹40 lakh. One narrow exception: earning interest on deposits, loans or advances does not count as supplying a service for this test, so interest income alone does not cost you the ₹40 lakh limit.
You are in one of ten states. The ₹40 lakh limit does not apply to goods suppliers in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura or Uttarakhand. In the first six of these the goods limit is ₹20 lakh; in Manipur, Mizoram, Nagaland and Tripura it is ₹10 lakh.
You sell certain goods. Ice cream and edible ice, pan masala, and tobacco or tobacco substitutes are left out of the ₹40 lakh limit whatever state you are in. Sell any of these and your limit is ₹20 lakh.
Who must register whatever their turnover
Some businesses have to register from their first sale, with no limit at all. The main ones are inter-state suppliers of goods, casual sellers who trade in a state where they have no fixed premises, non-resident sellers, anyone liable to pay tax under reverse charge, and anyone who deducts or collects tax under GST.
Two of these are widely stated wrong, so here is what the law actually says.
Inter-state services are not caught until you reach the normal limit. If you supply services to a client in another state, you are exempt from compulsory registration until your aggregate turnover reaches ₹20 lakh, the same as any other service provider (₹10 lakh in the four lower-limit states). A designer in Delhi billing a client in Mumbai for ₹4 lakh a year does not need to register on account of that inter-state work. The register-from-the-first-rupee rule is for inter-state supply of goods, not services.
Small online sellers now have exemptions too. Selling through a marketplace no longer means automatic registration in every case. If you supply services through a platform, you are exempt up to the normal ₹20 lakh limit. If you supply goods through a platform that collects tax at source, then since 1 October 2023 you can stay unregistered below the ₹40 lakh or ₹20 lakh goods limit, provided you sell in only one state, do not supply across state lines, and get an enrolment number on the portal first. Above the limit, or if you sell across states, registration is back to being compulsory.
If you are unsure which side of one of these lines you fall, it is worth getting it checked before you start selling, because registering late carries interest and penalties.
Freelancers, consultants and sole proprietors
If you work for yourself, the service limit is what applies to you: ₹20 lakh of aggregate turnover in a year, ₹10 lakh in Manipur, Mizoram, Nagaland or Tripura. Below that, you are not required to register, with one thing to watch. If you take on work for a client in another state, check the inter-state services position above. You are still covered up to ₹20 lakh, but it is the point people most often get wrong about their own situation.
Many freelancers register before they have to, because business clients ask for a GST invoice so they can claim the tax back. The next section covers when that choice makes sense.
You have crossed the limit. How long do you have?
Once your turnover crosses the limit that applies to you, you have 30 days to apply for registration. The clock starts on the day you become liable, which is the day you cross the limit, not the end of the year. Casual and non-resident sellers are different: they apply at least 5 days before they start trading.
Applying late does not just risk a penalty. You cannot issue a proper tax invoice or pass on input credit to your buyers until you are registered, so the delay can cost you customers as well.
Registering when you are under the limit
You can choose to register even if you are below the limit. It is worth doing in two common cases.
Your customers are businesses. A registered buyer wants a GST invoice so they can claim the tax you charge as input credit. Without your GST number they cannot, which can push them towards a registered supplier instead.
You have GST to reclaim on your own costs. If you buy stock, equipment, software or professional services with GST on them, registering lets you claim that tax back as input credit against the GST you collect. For an input-heavy business that can outweigh the extra filing.
The trade-off is real: once registered, you must file returns on time whether or not you have crossed any limit, and you must charge GST on your sales. Voluntary registration suits a business that is growing towards the limit anyway or selling mainly to other businesses. It suits a small B2C seller far less.
What GST registration actually is
GST registration is how a business is entered on the GST system and given a GSTIN, a 15-digit number tied to its PAN and state. Once registered, a business charges GST on its sales, files returns, and can claim credit for the GST on its purchases. The turnover limits on this page decide when that becomes compulsory. Registration itself is done online on the government portal, and we cover the documents and the step-by-step process on separate pages.
Already applied? You can check your GST ARN status for free.
If you would rather not work through the portal yourself, see our GST registration service for what it costs and what is included, or read the documents and process guide first.
Frequently asked questions
What is the turnover limit for GST registration?
₹40 lakh a year if you supply only goods, and ₹20 lakh if you supply services or a mix of goods and services. The limit is ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura, and the ₹40 lakh goods limit is reduced to ₹20 lakh in six more states.
Is the GST registration limit ₹20 lakh or ₹40 lakh?
Both, depending on what you sell. ₹40 lakh applies only to businesses supplying goods and nothing else. As soon as you supply any services, your limit is ₹20 lakh.
Have the GST registration limits changed recently?
No. The ₹40 lakh goods limit has applied since 1 April 2019 and has not changed since. Any figure described as a new limit for a recent year is incorrect.
What is aggregate turnover?
The total of all your supplies in a year: taxable sales, exempt sales, exports and inter-state sales, added across every GST registration under the same PAN. It excludes the GST itself and purchases taxed under reverse charge.
Is the limit based on turnover across all my branches?
Yes. Aggregate turnover is measured across every registration under one PAN and all states combined, not branch by branch. Branches under different PANs are separate.
Do I need to register for inter-state sales?
For goods, yes, from your first inter-state sale. For services, no: you are exempt up to the normal ₹20 lakh limit even when your clients are in other states.
Do I need GST registration to sell on Amazon or Flipkart?
Not always now. If you sell goods through a marketplace that collects tax at source, you can stay unregistered below the goods limit if you sell in one state only, do not sell across states, and get a portal enrolment number first. Above the limit, or selling across states, registration is compulsory.
Is there a turnover limit for freelancers and consultants?
Yes, the service limit of ₹20 lakh a year, or ₹10 lakh in the four lower-limit states. Below that you are not required to register unless another rule applies to you.
How long do I have to register after crossing the limit?
30 days from the day you become liable, which is the day you cross the limit.
Is GST registration mandatory below the limit?
Not unless you fall into a compulsory category such as inter-state supply of goods, reverse-charge liability, or selling as a casual or non-resident taxable person. Otherwise it is voluntary.
Should I register voluntarily if I am under the limit?
It is worth it if your customers are businesses that want a GST invoice, or if you have significant GST on your costs to reclaim. It is less worthwhile for a small business selling mainly to consumers.
Which states have a ₹10 lakh limit?
Manipur, Mizoram, Nagaland and Tripura. These are the special category states where the registration limit is ₹10 lakh rather than ₹20 lakh.
GST registration ki turnover limit kya hai?
Sirf goods bechte hain to ₹40 lakh saal ki, aur services ya dono bechte hain to ₹20 lakh. Manipur, Mizoram, Nagaland aur Tripura mein yeh limit ₹10 lakh hai.
Kya ₹20 lakh se kam turnover par GST registration zaroori hai?
Aam taur par nahi, jab tak aap kisi compulsory category mein na aayein, jaise doosre state mein goods bechna ya reverse charge ki liability. Warna registration voluntary hai.
Freelancer ya consultant ke liye GST limit kya hai?
Service limit hi lagti hai, yaani ₹20 lakh saal ki (₹10 lakh char special category states mein). Isse kam par registration zaroori nahi.
Kya Amazon ya Flipkart par bechne ke liye GST number chahiye?
Ab har baar nahi. Agar aap goods TCS wale platform se ek hi state mein bechte hain aur limit se neeche hain, to bina registration ke bech sakte hain, pehle portal se enrolment number lekar. Limit ke upar ya doosre state mein bechne par registration zaroori hai.
Aggregate turnover mein kya kya count hota hai?
Ek saal ki saari supplies: taxable, exempt, export aur inter-state, ek hi PAN ke saare registrations milakar. Ismein GST khud aur reverse charge wali purchases nahi gini jaatin.
Limit cross karne ke baad kitne din mein register karna hota hai?
Jis din aap liable bante hain, yaani limit cross karte hain, us din se 30 din ke andar.
Last reviewed: 15 September 2026
FilingSetu is the brand of ANR Consultancy, a partnership firm.
GSTIN: 07ACOFA0324K1ZG
This page explains the law as it stands on the review date. It is not advice on your specific case.
