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Home > GST > Help Center > GST Registration ThresholdsLast Updated: Feb 25th 2023

GST Registration Thresholds, Exceptions, Examples

For ensuring the tax compliance, registration is the most fundamental requirement for identification of taxpayer. GST is a indirect tax and it means Goods & Service tax. GST is a value added tax levied on supply i.e., manufacture or sale of goods and provision of services. GST is a PAN based registration.

Tax Due Dates & Threshold Limits

1. Threshold limit for GST Registration

Every supplier of goods or services or both is required to obtain registration in the state or union territory from where he makes the taxable supply if his aggregate turnover exceeds specified threshold limit in a financial year.

In a fiscal year, the threshold limit for GST registration is Rs 20 lakhs / 40 lakhs. However, in certain states, the registration fee is reduced to Rs 10 lakhs.

StatesNature of SupplyThreshold limit
  • Manipur
  • Mizoram
  • Nagaland
  • Tripura
Supplier of goods and/or servicesRs 10 lakhs
  • Arunachal Pradesh
  • Meghalaya
  • Sikkim
  • Uttarakhand
  • Puducherry
  • Telangana
Supplier of goods and/or servicesRs 20 lakhs
  • Jammu & Kashmir
  • Assam
  • Himachal Pradesh
  • All other states
Supplier of services/both goods and servicesRs 20 lakhs
  • Jammu & Kashmir
  • Assam
  • Himachal Pradesh
  • All other states
Supplier of goods (Intra State)Rs 40 lakhs

Learn more on Tax thresholds limits and due dates for IT, GST, TDS and other at Tax Threshold Limits & Due Dates
Aggregate Turnover

Aggregate turnover is a crucial parameter to avail the benefit of threshold exemption for registration. The word Aggregate turnover

INCLUDES the following

  1. Value of all outward taxable supplies of persons having same PAN on India basis
  2. Value of all outward Exempt supplies of persons having same PAN on India basis
  3. Value of Exports of persons having same PAN on India basis
  4. Value of Interstate supplies of persons having same PAN on India basis

EXCLUDES the following

  1. CGST/SGST/UTGST/IGST/compensation cess
  2. Value of inward supplies on which tax is payable under reverse charge

2. Exceptions for above threshold for GST registration

The above threshold of Rs 40 lakhs is not applicable to the following cases

  1. Persons required to take compulsory registration u/s 24.
  2. Persons engaged in making supplies of ice cream and other edible rice, whether or not containing cocoa, Pan masala, Tobacco and manufactured tobacco substitutes
  3. Persons who has opted for voluntary registration or such registered persons who wants to continue with existing registration
  4. Persons engaged in making intra state supplies in the states of Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Telangana, Puducherry and special category states(Nagaland, Mizoram, Manipur, Tripura).

Example: 1

Krishna Enterprises is having 2 business i.e. 1 in Telangana with turnover of Rs 8 lakhs and 1 in Tripura of 7 lakhs . In this case, do the Krishna enterprises needs to take GSTIN as The total threshold less than 20 lakhs?

Answer: Even though the turnover of Krishna enterprises is less than 20 lakhs, Tripura is a special category state and threshold limit is 10 lakhs for GST registration. Hence Krishna Enterprises is required to take GST Registration both in Telangana and Tripura

Note: A person is required to take GST registration from the place where he is making the taxable supply. He is not required to take registration in a state or union territory from where he makes a exempt or non-taxable supply

Example: 2

Bala Associates is dealing in trading of shoes in Andhra Pradesh and the turnover in AP is 32 lakhs. It is also dealing in supply of alcoholic liquor for human consumption in Nagaland and its turnover is 9 lakhs. The threshold for AP is 40 lakhs and Nagaland is 10 lakhs.

As the aggregate turnover of Bala associates is more than 40 lakhs (32+9=41), it is required to get registration in Andhra Pradesh but it is not required to take any registration in Nagaland

3. Persons who are required to take compulsory GST registration

  1. Persons making any interstate taxable supply (however the threshold of Rs 20 lakhs/10 lakhs is available in case of inter state supply of taxable services, notified handicraft goods and handmade goods)
  2. Casual taxable persons making taxable supply
  3. Persons who are required to pay tax under reverse charge on inward supplies received
  4. Non resident taxable persons making taxable supply
  5. E-Commerce (every e commerce operator and persons who supply goods and/or services)
  6. Persons who are required to deduct tax u/s 51
  7. Input service distributor
  8. OIDAR Services
  9. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
  10. Persons who are required to pay tax u/s 9(5)
  11. Such other persons or class of persons as may be notified by government
GST Registration when selling through e-Commerce Operators ?

Earlier, Regular GST Registration is mandatory for the persons who wants to sell the goods through online portals like Amazon, Flipkart etc

W.e.f 1st Oct 2022, Unregistered persons and Composition taxpayers with turnover of Rs 1.5 crores can sell the goods through e commerce operators like Amazon, Flipkart, Snapdeal etc. But the unregistered persons and composition taxpayers can make only Intra State supply of goods (within State)

4. Persons not liable for Registration

  1. Persons engaged exclusively in the business of supplying goods and/or services not liable to tax/wholly exempt from tax

    Tarakam Foundation, a charitable trust registered under income tax act which is exclusively engaged in providing charitable services. As the charitable activities are exempt from GST, Tarakam foundation is not required to get registered under GST

  2. An agriculturist, to the extent of supply of produce out of cultivation of land.

    Mr Ramaiah is an agriculturist engaged in cultivation of wheat in his field in Telangana. As Ramaiah is an agriculturist, he is not required to take GST registration But if Ramaiah wants to start trading rice apart from supplying the wheat produce, he will come under GST.

    The turnover from supply of wheat is 15 lakhs and Rs 7 lakhs from trading of rice.

    As the aggregate turnover is more than 20 lakhs (15+7=22), he is required to get registered under GST

  3. Persons making only reverse charge supplies
  4. Persons making inter-state taxable supplies of taxable services up to Rs 20 lakhs/10 lakhs
  5. Persons making inter-state taxable supplies of notified handicraft goods and notified hand made goods up to Rs 20 lakhs/10 lakhs
  6. Casual Taxable persons making inter-state taxable supplies of notified handicraft goods and notified handmade goods upto Rs 20 lakhs
  7. Persons making supplies of services through an ECO with aggregate turnover upto Rs 20 lakhs

5. When to apply GST Registration?

  1. Every person who is liable to get registered under GST should register within 30 days from the date on which he becomes liable to registration
  2. A Casual taxable person or Non-resident taxable person should register at least 5 days prior to the commencement of business
State wise Registration

  1. One registration per state: Registration needs to be taken state wise. There is no centralized registration under GST. Any business having branches in various states needs to take separate registration for each state.
  2. Within Same State: Any business having different branches in same state can have single registration. It needs to declare 1 place as principal place of business and others as additional place of business.
  3. Note 1: If the taxpayer wants to have separate registrations for various branches in same state, he can apply for the same.

    Note 2: If the taxpayer is paying tax for one of his place of business under normal scheme, he is not eligible to pay tax under composition scheme for other place of business

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