Understand the 2026 GST registration turnover limits for goods and services, lower-threshold states, aggregate turnover and compulsory registration cases.
Last verified: 28 September 2026. GST registration thresholds are not one universal number. The applicable threshold depends on whether the taxpayer is eligible for the enhanced ₹40 lakh goods threshold, the ₹20 lakh general threshold, the ₹10 lakh service threshold in specified states, and whether a compulsory-registration provision applies.
The biggest mistake is to say “GST starts after ₹40 lakh” without checking the type of supply and state.
CBIC’s registration guidance summarises the framework as follows:
| Supplier category | General threshold | Lower-threshold jurisdictions / conditions |
|---|---|---|
Suppliers of services | ₹20 lakh | ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura |
Exclusive suppliers of goods eligible for enhanced threshold | ₹40 lakh | ₹20 lakh in specified states/UT and subject to Notification 10/2019 conditions |
For goods, the enhanced ₹40 lakh exemption does not apply automatically to every business.
GST registration is tested using aggregate turnover as defined under GST law.
Broadly, it is PAN-based turnover calculated on an all-India basis and includes the categories specified in section 2(6), subject to statutory exclusions.
Do not test the limit using only:
Businesses with operations in multiple states should calculate the PAN-level aggregate turnover carefully.
Notification No. 10/2019-Central Tax provides exemption from registration to eligible persons engaged in exclusive supply of goods up to ₹40 lakh, subject to conditions and exclusions.
CBIC’s threshold summary lists a ₹20 lakh goods threshold in:
The precise legal eligibility should always be checked against the notification and the taxpayer’s supply pattern.
For service suppliers, CBIC summarises the threshold as:
This is why a consulting or professional-service business should not simply rely on the ₹40 lakh goods threshold.
A mixed business requires more careful analysis.
The enhanced ₹40 lakh notification is framed for persons engaged in exclusive supply of goods, subject to the notification’s provisions.
A business with significant taxable services should not automatically assume the ₹40 lakh limit applies.
Review the actual supply mix and section 22/notification conditions.
Section 24 of the CGST Act lists categories where registration can be compulsory, subject to later exemptions/notifications for particular classes.
Examples can include specified categories of:
Because exemptions have been issued for some classes over time, do not use an old “Section 24 list” without checking current notifications.
A business below the threshold can voluntarily register.
Once voluntarily registered, GST law generally applies to it as a registered person, including invoicing, return and tax-compliance obligations.
Voluntary registration can make sense where:
It should not be taken casually if the business is not ready for ongoing compliance.
Annual aggregate turnover: ₹18 lakh
Type: taxable consulting services
General service threshold: ₹20 lakh
On turnover alone, registration may not yet be triggered, provided no compulsory-registration provision applies.
Annual aggregate turnover: ₹36 lakh
Supply: exclusive goods, conditions satisfied
The enhanced exemption may apply, subject to Notification 10/2019 and current facts.
Annual aggregate turnover: ₹12 lakh
The ₹10 lakh service threshold is relevant, so registration can be required unless another exemption applies.
Section 25 generally requires a person who becomes liable to register to apply within the statutory period.
Do not wait until year-end if the threshold is crossed during the financial year.
Keep monthly turnover monitoring in your accounting system.
TaxQue can review your turnover, state and supply type before filing.
Information note: GST threshold analysis can change where compulsory-registration or exemption notifications apply. Review the current law for the actual transaction pattern.
This article is published by TaxQue (ARB FinTech LLP) for general informational, educational, and business guidance purposes only. Tax laws, GST rules, MCA circulars, and judicial precedents are subject to frequent statutory revisions. This content does not constitute formal individualized tax, accounting, or legal counsel.
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