GST Registration Turnover Limit 2026: ₹40 Lakh, ₹20 Lakh & ₹10 Lakh Rules

Quick answer: An eligible person exclusively supplying goods may qualify for the ₹40 lakh registration exemption. In specified states and Puducherry, the goods threshold is generally ₹20 lakh. Services usually follow ₹20 lakh, with ₹10 lakh applying in Manipur, Mizoram, Nagaland and Tripura. Mixed goods-and-services businesses generally cannot assume the enhanced ₹40 lakh exemption. Special mandatory-registration categories and exemptions can change this result.

If you are searching for the GST registration turnover limit in India in 2026, use the practical decision framework below instead of applying a single figure to everyone. The governing rules are principally sections 2(6), 22–25 of the CGST Act, 2017, Notification 10/2019-Central Tax and later notifications.

1. GST registration turnover limit in 2026: comparison table

Official references: CBIC — GST: An Update, registration thresholds Official ↗ · CGST Act, 2017 Official ↗ · CBIC Central Tax notifications Official ↗.

2. Understand aggregate turnover before checking the threshold

The threshold is based on aggregate turnover under section 2(6), not only the amount received in one bank account, one shop's sales, or one state's invoices. Aggregate turnover is calculated for all businesses under the same PAN across India for the relevant financial year.

In broad terms, aggregate turnover includes:

• taxable outward supplies (excluding inward supplies received on which you pay tax under reverse charge);
• exempt supplies, including supplies treated as exempt under the law;
• exports of goods or services; and
• interstate supplies made by the same PAN.

It generally excludes GST taxes and compensation cess themselves and the value of inward supplies on which tax is payable by you under reverse charge.

Example: turnover across Bihar and Odisha

A sole proprietor sells eligible taxable goods worth ₹23 lakh from Bihar and ₹19 lakh from Odisha in FY 2026–27 under the same PAN. Aggregate turnover is ₹42 lakh, not ₹23 lakh or ₹19 lakh separately. The supplier should review registration liability in the states from which taxable supplies are made and the dates when liability arises. It does not mean every state needs registration solely because that state received an order.

Example: exempt supplies plus taxable services

A consultancy has ₹16 lakh of taxable service fees and ₹6 lakh of qualifying exempt outward supplies under the same PAN. Subject to classification and exclusions, aggregate turnover is ₹22 lakh even though taxable fees alone are ₹16 lakh. The firm should test the ₹20 lakh registration threshold rather than ignoring the exempt turnover.

3. When does the ₹40 lakh GST threshold apply to goods?

Notification 10/2019-Central Tax, effective 1 April 2019, provided an enhanced registration exemption up to ₹40 lakh for qualifying persons engaged in exclusive supply of goods. It is an exemption from the registration requirement, not a blanket exemption from every other GST provision.

The enhanced limit is not available automatically where relevant exclusions apply, including:

• supplies from the specified lower-threshold states/UT listed in the table above;
• certain notified goods such as ice cream and other edible ice (whether or not containing cocoa), pan masala, tobacco and manufactured tobacco substitutes;
• persons subject to the specified compulsory-registration categories under section 24, where no separate relief applies; and
• persons who do not meet the notification's exclusive-goods or other eligibility conditions.

Goods examples

Example A — Eligible retailer in Odisha: A local trader exclusively supplies qualifying goods, has PAN-wide aggregate turnover of ₹34 lakh, and has no disqualifying category. The enhanced ₹40 lakh exemption may apply. No GST should be charged merely because the trader expects future growth.

Example B — Telangana goods trader: A local goods dealer reports ₹24 lakh aggregate turnover. Telangana is listed under the ₹20 lakh goods threshold rather than the enhanced ₹40 lakh limit. The dealer must consider registration once the applicable limit is crossed, assuming taxable supplies and no other exemption.

Example C — Ice-cream manufacturer: Do not rely on the ₹40 lakh threshold solely because the business supplies goods. The notification specifically excludes certain product classes. Check the precise classification and registration position.

Example D — Interstate goods sales: Interstate taxable supplies can attract compulsory registration under section 24 unless a specific relief covers the supplier or transaction. An ordinary goods trader should not infer that ₹40 lakh always protects interstate transactions.

4. ₹20 lakh and ₹10 lakh GST registration thresholds for services

For ordinary service suppliers, CBIC's registration summary identifies a ₹20 lakh threshold generally and ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura.

This commonly concerns consulting, repair and maintenance, IT services, professional work, salons, many commissions and other taxable services. However, the taxability and exemption of the specific service matter.

Service examples

Interstate services are not automatically disqualified

Notification 10/2017-Integrated Tax, as amended, granted relief to qualifying interstate service suppliers within the applicable turnover limits. A freelancer serving a client in another state is therefore not automatically required to register just because the client is located elsewhere. Determine the place of supply and the relevant exemption before deciding.

The same reasoning must not be blindly extended to ordinary interstate goods suppliers: the rules and exemptions differ.

5. Businesses selling both goods and services

The words “exclusive supply of goods” are central to the ₹40 lakh exemption. A retail store that also provides taxable repair services, installation or consultancy must evaluate whether the supply pattern remains eligible under the notification; it should not simply apply ₹40 lakh because goods form most revenue.

For example, a business has ₹28 lakh of goods sales and ₹4 lakh of separately charged taxable services. That is ₹32 lakh aggregate turnover. In an ordinary ₹20 lakh jurisdiction, it may already be liable for registration rather than qualifying for the goods-only ₹40 lakh exemption, subject to the exact legal classification and facts.

6. Compulsory GST registration under section 24: know the exceptions

Section 24 identifies categories that can require registration irrespective of turnover, but section 23 and specific notifications give relief to some taxpayers. It is inaccurate to say that every interstate seller or every marketplace seller needs registration without examining those exemptions.

Important categories to check include:

• persons making interstate taxable goods supplies, subject to statutory and notified relief;
• persons required to pay tax under reverse charge in applicable cases, with exemptions for certain persons exclusively making recipient-taxable reverse-charge supplies;
• casual taxable persons and non-resident taxable persons making taxable supplies;
• persons required to deduct tax at source or specified ecommerce operators liable to collect tax at source;
• persons making taxable supplies on behalf of other taxable persons as agents, where applicable;
• input service distributors and other specifically listed categories; and
• supplies involving ecommerce platforms where the operator is liable under section 9(5) or a special exemption applies.

Important 2023 ecommerce relief for unregistered goods sellers

Notification 34/2023-Central Tax provides a conditional exemption for certain persons supplying goods through ecommerce operators where the operator is required to collect TCS. The accompanying procedure and operator obligations are addressed in Notifications 36/2023 and 37/2023. Among the conditions are restrictions to intra-state supplies, applicable PAN-based enrolment and other prescribed requirements.

This relief is not a general permission to send unregistered goods sales across state borders. Consult the ecommerce operator's onboarding rules and the current GST notification text.

Official starting point: CBIC Central Tax notification archive Official ↗.

7. Exclusively exempt goods and services: section 23

Someone exclusively supplying goods or services that are wholly exempt or non-taxable is generally not liable for registration under section 23, even if the aggregate sales amount is large. An agriculturist's supply of produce from cultivation of land is also subject to a specific exclusion under section 23.

This does not mean a business with ₹1 crore in wholly exempt supplies can add ₹50,000 of taxable work and automatically remain unregistered. Once supplies are mixed, the computation and registration exemptions must be reassessed.

Example: A firm supplies ₹35 lakh of wholly exempt items and ₹3 lakh of taxable services. Its aggregate turnover may be ₹38 lakh; the presence of taxable services can change the registration conclusion. Examine its exact supply classification before relying on section 23.

8. When do you need registration for a second state or additional branch?

GST registrations are state/UT-specific, while the turnover threshold is measured on an all-India PAN basis. Businesses should identify the state from which each taxable supply is made rather than assuming that every destination state where customers live requires another registration.

• A registered trader with an additional place of business in the same state generally updates the registration; separate registration may be available for multiple places of business under the rules.
• A business operating from a separate state may need registration there when that state's registration liability arises.
• Selling to customers in another state does not, by itself, create a separate establishment or GST registration requirement in the customer's state.
• Separate companies with their own PAN do not automatically combine their aggregate turnover merely because they share an owner, brand or group.

9. How quickly must you register after crossing the limit?

Under section 25(1), a person who becomes liable under section 22 or section 24 generally must apply for registration within 30 days from the date liability arises. Some categories, including casual taxable persons and non-resident taxable persons, have separate advance-application rules.

The GST portal explains that a timely normal-taxpayer application can make registration effective from the date liability arose, while a late application can result in a different effective registration date. Tax liability and interest exposure should not be assumed to disappear because the ARN or GSTIN was issued later.

For the official interface and forms, use GST Portal — Registration User Manual Official ↗.

10. Example calculations for small businesses in India

These examples assume ordinary taxable supplies where specified. They are illustrations, not determinations of liability for a real business.

11. Registration threshold vs composition scheme vs GST rate

Three figures are frequently confused:

A business may be required to register well before reaching a composition eligibility ceiling. Equally, crossing a registration threshold does not establish that every product or service is taxable at the same rate.

Read TaxQue's GST registration fees guide, GST rates and HSN guide and GST registration service for the next steps.

12. Should you voluntarily register below the threshold?

Under section 25(3), a person not otherwise liable may apply for voluntary GST registration. Once registered, they generally take on the rights and obligations of a registered taxpayer, including relevant filings and tax payments.

Voluntary registration can be useful where a business:

• serves B2B customers that prefer GST invoices;
• has eligible input tax credit on substantial purchases;
• expects turnover to exceed the limit soon; or
• needs a GSTIN for certain contracts or onboarding workflows.

It may not be sensible for a very small consumer-facing business without input-credit needs, because late returns, reconciliations and compliance costs can continue even in quiet months. Evaluate cash flow and ongoing obligations before applying voluntarily.

13. Documents and records to retain for a threshold assessment

• ○ PAN-wise annual turnover statement across all states
• ○ Month-by-month taxable goods invoices
• ○ Taxable service invoices and receipts
• ○ Exempt, nil-rated and non-taxable outward supply details
• ○ Export and interstate supply ledger
• ○ HSN/SAC classification and business-activity description
• ○ State-wise places of business, warehouses and branch details
• ○ Ecommerce and marketplace terms, enrolment details, and supply geography
• ○ Records of any reverse-charge / section 9(5) activities
• ○ Earlier registrations or cancellation records under the same PAN
• ○ Copies of the notifications relied upon and calculation working papers

14. Common GST threshold mistakes to avoid

Mistake 1: Treating ₹40 lakh as the universal threshold. It is an enhanced goods-specific exemption with conditions.

Mistake 2: Treating every northeastern state as a ₹10 lakh service state. CBIC's current framework identifies four specific states for the lower service threshold.

Mistake 3: Ignoring exempt or export sales. These can form part of aggregate turnover, even when the outward supply has a different GST treatment.

Mistake 4: Looking only at one state. Aggregate turnover is PAN-wide and all-India.

Mistake 5: Assuming all interstate service supplies require registration. Examine Notification 10/2017-Integrated Tax and amendments.

Mistake 6: Assuming unregistered sellers can sell any goods anywhere through ecommerce. Special 2023 relief is conditional and does not permit all interstate goods supplies.

Mistake 7: Waiting until the financial year ends. Registration liability can arise during the year; section 25 has a general 30-day application period.

Mistake 8: Confusing the registration threshold with the composition scheme limit or the GST tax rate. These are different legal tests.

15. What changed at the October 2026 GST Council meeting?

At its 57th meeting on 8 October 2026, the GST Council recommended reforms to registration processing, amendments, cancellations and small sellers using ecommerce platforms. The official press release also discusses automatic registration arrangements under Rule 14A for qualifying applicants under prescribed conditions, and an in-principle optional scheme for certain small consumer-facing businesses with turnover up to ₹5 crore.

These are not the same thing as replacing the ordinary ₹40 lakh, ₹20 lakh and ₹10 lakh registration thresholds. The proposed optional scheme is also not a general five-crore GST registration exemption. A recommendation has to be distinguished from a rule, notification or legislation that is actually effective.

Source: PIB — 57th GST Council recommendations, 8 October 2026 ↗.

Official government sources and verification checklist

The following official portals and legal sources support the framework explained above. Check the latest amendments and applicable state position at the time of filing:

1. CBIC — GST An Update, Registration and Threshold (1 June 2019) Official ↗ — published threshold summary (historical reference).
2. CGST Act, 2017 — sections 2(6), 22, 23, 24 and 25 Official ↗ — statutory framework; read with amendments.
3. CBIC — Central Tax notifications Official ↗ — Notification 10/2019 and 34/2023, 36/2023 and 37/2023.
4. CBIC — Circular 88/07/2019-GST Official ↗ — interstate supply of job-work services and relevant relief.
5. GST Portal — New Registration User Manual Official ↗ — filing steps, documents and effective-date notes.
6. GST Council — What's New ↗ — monitor recommendations separately from notified legal amendments.

Get your GST registration eligibility reviewed by TaxQue

If you operate across states, sell goods and services together, use ecommerce marketplaces or have significant exempt turnover, a PAN-wide calculation plus notification review is the safest way to decide whether you need a GSTIN.

TaxQue can assist with applicability checks, document preparation and online GST registration. You can also review our GST registration fee comparison before engaging a professional.

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Compliance note: This article provides general information as of October 2026. Notification applicability, activity classification and special cases can change the answer. It is not an individual legal or tax opinion.