GST Registration Threshold Limits (Updated 2025)
The GST Council, in its 32nd meeting held on 10th January 2019, increased the GST registration threshold limits, especially to ease compliance for small businesses and MSMEs. The revised limits were later notified by the CBIC and continue to impact the registration requirements under GST even today.
This article explains the current GST registration threshold limits, previous limits, state-wise applicability, and exemptions. We also cover changes to the composition scheme and provide a quick FAQ at the end.
📌 Latest GST Registration Update
Dated: 21st December 2021
From 1st January 2022, Aadhaar authentication became mandatory to apply for revocation of a cancelled GST registration under Rule 23 of the CGST Rules using Form REG-21.
✅ GST Registration Threshold Limits — Then & Now
| Aggregate Turnover | Registration Required | Applicability |
|---|---|---|
| Earlier Limits – For Sale of Goods / Services | ||
| Exceeds ₹20 lakh | Yes | Normal States (Until 31st Mar 2019) |
| Exceeds ₹10 lakh | Yes | Special Category States (Until 31st Mar 2019) |
| New Limits – For Sale of Goods (w.e.f. 1st April 2019) | ||
| Exceeds ₹40 lakh | Yes | Normal States (From 1st Apr 2019) |
| Exceeds ₹20 lakh | Yes | Special States (From 1st Apr 2019) |
| For Services | ||
| No change – Still ₹20 lakh for normal states, ₹10 lakh for special category states | ||
📍 States that Opted for Revised GST Thresholds
Normal States/UT Opted for ₹40 Lakh Limit:
- Kerala, Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal, Lakshadweep, Dadra & Nagar Haveli and Daman & Diu, Andaman & Nicobar Islands, Chandigarh.
Normal States Opting for Status Quo:
- Telangana
Special Category States Opted for ₹40 Lakh:
- Jammu & Kashmir, Ladakh, Assam
Special States Opted for ₹20 Lakh:
- Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand
Note 1: Despite being hilly states, J&K and Assam opted for the ₹40 lakh limit.
Note 2: Kerala is also allowed to levy a 1% calamity cess on intra-state supplies due to natural disasters.
🧾 Financial Year Consideration
The aggregate turnover of the current financial year is considered to determine GST registration liability. Once turnover crosses the applicable threshold, registration becomes mandatory.
However, irrespective of turnover, the following must register:
- Interstate suppliers
- Casual taxable persons
- Reverse charge taxpayers
- Non-resident taxable persons
- TDS/TCS deductors
- Input service distributors
- Agents/Principals selling on behalf of others
- E-commerce operators
- Suppliers via e-commerce platforms
- Online service providers from abroad to Indian unregistered recipients
📦 Changes in Composition Scheme Thresholds
From 1st April 2019, the turnover limit for the composition scheme was raised to ₹1.5 crore (₹75 lakh for NE States & Uttarakhand).
- Composition taxpayers now pay tax quarterly but file returns annually.
- Restaurants (excluding alcohol) are also covered under this limit.
For Service Providers (From 2019)
A new composition scheme was introduced with:
- Turnover limit: ₹50 lakh
- Tax rate: 6% (3% CGST + 3% SGST)
- Applicable to: Independent service providers & mixed suppliers
❓ Frequently Asked Questions
Q. Is the GST registration limit ₹20 lakhs or ₹40 lakhs?
A. For goods, it’s ₹40 lakh in most normal category states. For services, it’s still ₹20 lakh (₹10 lakh for special category states).
Q. What is the minimum turnover to register for GST?
A. ₹20 lakh for service providers in normal states and ₹40 lakh for goods suppliers (if the state opted for higher limit).
If you’re unsure whether your business needs to register for GST, consult with us.
For expert support with GST registration, compliance, and filings, feel free to contact us at aaaa.co.in or reach out directly to Ankush Aggarwal & Associates.
