Threshold for GST Registration
The threshold for GST registration is the minimum annual turnover that a business must exceed in order to be required to register for GST.
Threshold for GST registration is checked for PAN INDIA across all businesses.
The threshold for GST registration applies to all businesses that supply taxable goods or taxable services, regardless of their size or type.
This includes sole proprietorships, partnerships, companies, trusts, and any other business entity.
What is the threshold limit?
As of January 2023, the limit is 40 lakhs for businesses that supply taxable goods. As of January 2023, the limit is 20 lakhs for businesses that supply taxable good and services.
North Eastern states and hill states are considered special category states. Any person making supplies from these states, then the threshold is 10 lakhs for taxable goods and services and 20 lakhs for only taxable goods.
The North Eastern states include Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. The hill states include Himachal Pradesh, Jammu and Kashmir, and Uttarakhand.
Threshold is not applicable
It is important to note that there are certain categories of businesses that are required to register for GST regardless of their annual turnover. These include:
- Businesses that make inter-state supplies of goods and services,
- Businesses that are engaged in e-commerce, and
- Businesses that are required to pay tax under the reverse charge mechanism.