GST Registration Threshold Limits

The GST Council,  to ease compliance under GST, increased the GST registration threshold limits. These changes were proposed in the 32nd GST Council meeting held on 10th January 2019.

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!

Overview of Earlier Limits, New Limits and the Date of Applicability

States Who Opted for the New Limit

An option was provided to the states to opt for the new limits or continue the earlier ones (status quo).

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 2025-2026) is considered for applicability of new threshold limits. 

Who are Compulsorily Required to Register for GST?

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:

• Interstate suppliers
• Casual Taxable persons
• Persons taxable under the reverse charge basis
• Non-resident taxable persons
• Persons required to deduct TDS under GST
• Persons required to deduct TCS under GST
• Input Service Distributors
• Persons making a sale on behalf of someone else, whether as an Agent or Principal.
• Every e-commerce operator provides a platform to suppliers to make supply through it.
• Suppliers who supply goods through e-commerce operators are liable to collect tax at source.
• Online Service Providers providing service from outside India to a non-registered person in India.
• Every person supplying online money gaming from a place outside India to a person in India

How to Calculate GST Threshold Limit?

Aggregate turnover for the current financial year (for instance, in the above case, FY 2025-2026) is considered for calculating GST threshold limit.

While computing the aggregate turnover, a taxpayer should consider the sum of the following:

1. Value of all taxable supplies
2. Exempt supplies
3. Exports of goods or services or both
4. Inter-state supplies of persons having the same PAN

Changes in the Threshold Limits to opt into the Composition Scheme

Changes in the composition scheme: The threshold of annual turnover for composition scheme was increased to Rs.1.5 crore from 1st April 2019. The taxpayers registered under the scheme have to pay tax quarterly and file returns annually from 1st April 2019. The limit remains unchanged at Rs.75 lakh for North Eastern states & Uttarakhand. The limit also applies to restaurants (not serving alcoholic beverages).

Composition scheme was made available to service providers: New scheme introduces a fixed tax rate of 6% with 3% CGST and 3% SGST. Independent service providers, as well as mixed suppliers of goods and services with an annual turnover of up to Rs.50 lakh in the preceding financial year can opt for this scheme.