What is GST Registration Threshold?

GST registration becomes compulsory once annual turnover crosses ₹40 lakh for goods or ₹20 lakh for services in most states, with lower limits in the special category states.

The limits are ₹20 lakh for goods and ₹10 lakh for services in the special category states of the north-east, Himachal Pradesh and Uttarakhand. Jharkhand, Uttar Pradesh and Bihar all use the ordinary limits.

Some businesses must register from the first rupee regardless of turnover: anyone making inter-state supplies of goods, e-commerce sellers, casual taxable persons, and anyone liable under reverse charge.

Why it matters

Registering voluntarily below the threshold is often worth it — without a GSTIN you cannot claim input tax credit, and larger customers will not buy from an unregistered supplier.

A worked example

A Ranchi trader selling goods within Jharkhand reaches ₹42,00,000 of turnover in February.

Illustrative figures. Your own numbers will differ — that is what the quote is for.
Threshold for goods, Jharkhand	₹40,00,000
Turnover at the point of crossing	₹40,00,000 — crossed in February
Time to apply from that date	30 days
Tax payable on supplies made while unregistered	Full rate, with no input credit
Minimum penalty for failure to register	₹10,000

The threshold is on aggregate turnover across all of India on the same PAN, not per state and not per business vertical — which is why a second small business on the same PAN can push the first one over the line.

The statutory position

Each figure with the provision it comes from, so it can be checked.
What	Position	Source
Goods, most states	₹40,00,000	Notification 10/2019-Central Tax
Services	₹20,00,000	Section 22, CGST Act 2017
Special category states	₹20,00,000 goods, ₹10,00,000 services	Section 22(1), proviso
Interstate supply	Registration mandatory at any turnover	Section 24(i), CGST Act 2017
Supply through an e-commerce operator	Registration mandatory at any turnover	Section 24(ix), CGST Act 2017
Time to apply	30 days from becoming liable	Section 25(1), CGST Act 2017

Not to be confused with

These get used interchangeably, including by tools that should know better. They are different things.

Composition scheme limit

The composition limit — ₹1.5 crore for goods — is the ceiling for staying in a simplified scheme. The registration threshold is the floor at which registration becomes compulsory. Different numbers, opposite purposes.

Income tax audit threshold

The ₹1 crore tax audit threshold is under the Income-tax Act and unrelated. A business can be liable to register for GST at ₹40 lakh and nowhere near a tax audit.

Questions people ask

Is the threshold per state or overall?

Aggregate turnover is computed across all of India on the same PAN, including exempt supplies and exports. Once it crosses, registration is required in each state from which you make taxable supplies.

I sell on Amazon. Does the threshold apply to me?

No. Supply through an e-commerce operator requires registration from the first rupee under section 24(ix), whatever the turnover. This is the single most common registration mistake among small online sellers.

What usually goes wrong

Counting only taxable turnover, when aggregate turnover includes exempt supplies and exports
Treating the threshold as per-state when it is computed on the all-India PAN total
Waiting for the threshold while selling interstate or on a marketplace, where it does not apply
Crossing in February and applying in June, leaving four months of supplies taxable without credit