Updated on: Mar 15th, 2023
7 min read
The GST Council, on considering the demands raised by MSME, increased the GST registration threshold limits. These changes were proposed in the 32nd GST Council meeting held on 10th January 2019. It was subsequently notified by the CBIC. It helps to ease compliance under GST.
This article explains the GST registration threshold limits. Find out the earlier threshold limits, new GST registration limits, and the persons to whom it applies. Meanwhile, if you want to check your vendors’ or buyers’ registration status, you can use our GST search tool. Enter the GSTIN and get results in no time!
Latest updates on GST Registration
21st December 2021
From 1st January 2022, CBIC made the aadhaar authentication mandatory to apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21.
|Aggregate Turnover||Registration Required||Applicability|
|Earlier Limits – For the sale of Goods/Providing Services|
|Exceeds Rs.20 lakh||Yes – For Normal Category States||Up to 31st March 2019|
|Exceeds Rs.10 lakh||Yes – For Special Category States||Up to 31st March 2019|
|New Limits – For Sale of Goods|
|Exceeds Rs.40 lakh||Yes – For Normal Category States||From 1st April 2019|
|Exceeds Rs.20 lakh||Yes – For Special Category States||From 1st April 2019|
|New Limits – For Providing Services|
|There has been no change in the threshold limits for service providers. Persons providing services need to register if their aggregate turnover exceeds Rs.20 lakh (for normal category states) and Rs.10 lakh (for special category states).|
An option was provided to the states to opt for the new limits or continue the earlier ones (status quo).
|Normal Category States/UT who opted for a new limit of Rs.40 lakh||Normal Category States who choose status quo||Special Category States/UT who opted for new limit of Rs.40 lakh||Special Category States/UT who opted for new limit of Rs.20 lakh|
|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 and Nagar Haveli and Daman and Diu, Andaman and Nicobar Islands and Chandigarh||Telangana||Jammu and Kashmir, Ladakh and Assam||Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand|
Note 1: Two hilly states J&K and Assam have also opted to raise the limit to Rs.40 lakh. These two states had the option to remain under lower threshold limits as they fall under the Special Category States. Even previously when these two states had the option to charge GST only on aggregate turnover exceeding Rs.10 lakh, they had opted for a higher threshold limit of Rs.20 lakh.
Note 2: Kerala can now charge ‘calamity cess’ up to 1% on all intra-state supply of goods and services to cope up with natural calamities faced by the state last year.
Aggregate turnover for the current financial year (for instance, in the above case, FY 2019-2020) is considered for applicability of new threshold limits. Every supplier whose aggregate turnover in the current financial year exceeds the threshold limits will have to get registered under GST. However, certain category of persons are required to compulsorily get registered under GST: