GST Registration Threshold Limit in India (2025-26): ₹40 Lakh, ₹20 Lakh & ₹10 Lakh Explained

If you run a small business in India, one question comes up early: do you need to register for GST?

The answer depends on three things — your state, what you sell, and your annual turnover.

This guide covers every limit clearly. No jargon, no confusion.

The Short Answer

Here is the GST registration threshold in India for 2025-26:

If your annual aggregate turnover crosses these limits, registration is mandatory.

Not sure which limit applies to you? Use the GST Registration Threshold Checker — pick your state, supply type, and turnover to get an instant answer.

What "Aggregate Turnover" Actually Means

This is where most people get confused.

Aggregate turnover is not just your sales in one city or one shop. It includes:

• All taxable supplies across India
• Exempt supplies
• Exports of goods and services
• Inter-state supplies

All of this is counted under a single PAN, not per location or per business unit.

What is excluded from aggregate turnover:

• GST collected (CGST, SGST, IGST)
• Inward supplies taxed under reverse charge

So if you have two shops in different states under the same PAN, the turnover of both shops is added together to check the threshold.

States That Follow the ₹40 Lakh Limit for Goods

Most states in India use ₹40 lakh as the threshold for goods suppliers. These are called normal category states.

Here is the full list:

Andhra Pradesh, Bihar, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana*, Uttar Pradesh, Uttarakhand, West Bengal, Assam**, Jammu & Kashmir**, Ladakh, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands, Lakshadweep, Puducherry

*Telangana is a special category state but has opted for ₹20 lakh for goods, not ₹40 lakh. See the Telangana section below.

**Assam and J&K are special category states but opted for the higher ₹40 lakh goods limit.

Special Category States — Lower Thresholds Apply

Some states have lower limits. These are mostly northeastern and hilly states.

Goods threshold: ₹20 lakh Services threshold: ₹10 lakh

States in this category:

Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura

Even in these states, some businesses have opted for higher limits. Always verify your specific state on the official GST portal or with a CA.

State-Specific Notes

GST Registration Threshold in West Bengal

West Bengal is a normal category state.

• Goods: ₹40 lakh
• Services: ₹20 lakh

If your business is in West Bengal and sells goods only, you need to register only after crossing ₹40 lakh annually. For services, the limit is ₹20 lakh.

GST Registration Threshold in Telangana

Telangana is technically a special category state. But it has opted for ₹20 lakh as the goods threshold — not ₹40 lakh like most other states.

• Goods: ₹20 lakh
• Services: ₹20 lakh

This trips up a lot of business owners in Telangana. If you sell goods there, your registration limit is half of what it would be in Maharashtra or Delhi.

When You Must Register Regardless of Turnover

Here is something many people miss.

Some businesses are required to register under GST even if their turnover is ₹1 or ₹1 crore. The threshold does not apply to them.

You fall in this category if:

1. You Make Inter-State Taxable Supplies

Selling goods or services across state lines? You must register. No turnover exemption applies.

Even if your total annual sales are ₹5 lakh, one inter-state transaction triggers mandatory registration.

2. You Sell on an E-Commerce Marketplace

Listing products on Amazon, Flipkart, Meesho, or any similar platform? Registration is mandatory. The marketplace usually requires your GSTIN before activation anyway.

3. Reverse Charge Applies to You

If you receive certain supplies where you pay the tax (not the supplier), you need to be registered.

4. You Are a Casual or Non-Resident Taxable Person

Occasional business in a state where you have no fixed establishment? You must register before starting supplies.

5. You Are an E-Commerce Operator

Running a platform that connects buyers and sellers? Operator-level obligations apply. Registration is mandatory regardless of turnover.

6. TDS Deductor or Input Service Distributor

Notified persons who deduct TDS under GST must register. Same for Input Service Distributors (ISDs).

If any of the above applies to you, do not rely on the turnover limit. Go register directly.

Goods vs Services — What Is Your Supply Type?

This matters because the threshold is different for each.

Goods — physical products, manufactured items, traded stock.

Services — consulting, software, design, agency work, education, and similar.

Mixed — you sell both. In this case, the goods-side threshold (₹40 lakh in most states) is used as the practical benchmark. But if your business is primarily services, validate this with a CA.

Voluntary Registration — Should You Register Early?

You can register for GST even if you are below the threshold. Here is when it makes sense:

• Your B2B clients want a GSTIN to claim input tax credit
• You want to claim input tax credit on your own purchases
• You are planning to scale past the limit soon
• You sell on e-commerce platforms (mandatory regardless)

Voluntary registration gives you access to the full GST ecosystem. The trade-off is compliance — monthly or quarterly filings.

What Happens If You Do Not Register After Crossing the Limit?

If your turnover crosses the threshold and you do not register, you are non-compliant.

Consequences include:

• Penalty — a percentage of the tax due (subject to a minimum amount)
• Demand notices — the GST department can raise a demand for unpaid tax
• Interest — on the unpaid tax amount from the date it was due

The exact penalty depends on the delay, the facts, and the assessing officer's discretion. It is not a flat fine. Get a CA involved if you have missed the deadline.

How to Calculate If You Have Crossed the Threshold

Follow these steps:

1. Add up all sales (goods + services + exports) under your PAN — across all India locations
2. Include exempt supplies in the total
3. Do not include GST collected in the total
4. Compare the total with your applicable limit (based on state and supply type)

If the number crosses the limit at any point during the financial year, you become liable to register within 30 days of crossing it.

Quick Reference: Threshold Limits by Scenario

Use the Threshold Checker Tool

Instead of doing the math manually, use our free tool.

GST Registration Threshold Checker →

Pick your state, enter your supply type, and add your annual turnover. The tool accounts for state-specific limits and mandatory registration factors automatically.

Frequently Asked Questions

What is the GST registration threshold limit in India?

For goods, it is ₹40 lakh in most states and ₹20 lakh in special category states. For services, it is ₹20 lakh in most states and ₹10 lakh in special category states. These are annual aggregate turnover limits under the same PAN.

Is the GST registration limit ₹20 lakh or ₹40 lakh?

It depends on what you supply and where. For goods in normal states, it is ₹40 lakh. For services, it is ₹20 lakh. For businesses in special category states, the limits are lower.

What is the GST threshold for special category states?

Special category states have a ₹20 lakh limit for goods and ₹10 lakh for services. Some states like Assam and J&K have opted for higher limits. Telangana uses ₹20 lakh for goods despite being a special category state.

Do I need GST if I sell goods worth ₹25 lakh in West Bengal?

No. West Bengal uses the ₹40 lakh threshold for goods. At ₹25 lakh, you are below the limit. But if you make any inter-state sales, registration becomes mandatory regardless.

What is the GST registration threshold for services?

₹20 lakh in most states. ₹10 lakh in special category states. If you exclusively provide services, this is your applicable limit.

Is there a different GST limit for online sellers?

Yes. If you sell through an e-commerce marketplace like Amazon or Flipkart, there is no threshold exemption. You must register before you start selling.

What is the GST threshold for Telangana?

Telangana uses ₹20 lakh for goods, not ₹40 lakh like most other states. Services also fall under ₹20 lakh. This is a common point of confusion for businesses in Telangana.

Can I register for GST voluntarily below the threshold?

Yes. Voluntary registration is allowed and often makes sense for B2B businesses or those planning to scale. Once registered, all GST compliance requirements apply.

Is the GST threshold calculated monthly or annually?

It is based on the annual aggregate turnover for the financial year (April to March). Once you cross the limit during the year, you must register within 30 days.

Does this article replace advice from a CA?

No. GST rules, notifications, and state-specific options change. Use this as a starting point to understand the framework. For your specific situation, consult a chartered accountant or tax professional.

Last updated: April 2026. GST thresholds are subject to change based on GST Council recommendations and state notifications. Always verify on the official GST portal or with a qualified adviser.