Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Goods vs services
Goods suppliers: ₹40 lakh. Service providers: ₹20 lakh. Special-category states have lower limits. Turnover is measured PAN-wide across India.
Below the limit but still required
If you supply inter-state, sell online, or are liable under reverse charge, you must register even under the threshold. Confirm current limits.
How the limit is measured, with a worked case
‘Aggregate turnover’ for the threshold is PAN-wide and all-India: it adds taxable, exempt, export and inter-state supplies, but excludes the GST itself and inward supplies taxed under reverse charge. So a Mumbai consultant billing ₹14 lakh and also earning ₹7 lakh of exempt income has an aggregate turnover of ₹21 lakh and crosses the ₹20 lakh services limit, even though taxable receipts alone were under it. For a goods trader the line is ₹40 lakh, dropping to ₹20 lakh in the listed special-category states; for services it’s ₹20 lakh, ₹10 lakh in some special states. Mixed suppliers of goods and services generally take the lower ₹20 lakh line. Because the figure is cumulative across the year, watch it through the year rather than at the close — once you cross, you have 30 days to apply, and supplies made after liability begins but before registration can still carry tax. Confirm the current limit for your state and supply type, since the special-category list and the thresholds have changed over time.