Who must register for GST?

You must register for GST when your aggregate turnover in a financial year crosses ₹40 lakh if you supply only goods, or ₹20 lakh if you supply services, in most states. Some businesses — such as those selling goods to other states or collecting tax under reverse charge — must take GST Registration from day one, whatever their turnover.

Not every business must register for GST. The answer depends on your turnover, what you supply, and how you sell. The rules below come from Sections 22 and 24 of the CGST Act; the official text is on cbic-gst.gov.in.

What are the GST Registration turnover limits?

Business type	Register when aggregate turnover exceeds
Supplying only goods (most states)	₹40 lakh
Supplying services, or both goods and services (most states)	₹20 lakh
Special category states	Lower limits — ₹20 lakh for goods and ₹10 lakh for services, depending on the state

"Aggregate turnover" is the total of all supplies across India under the same PAN, including exempt supplies and exports. It does not include the GST itself.

The lower limits apply in a handful of states, mostly in the North-East, and not every state chose the ₹40 lakh option for goods. If your business is outside the large states, check the limit for your state on the GST portal or with your state GST department.

A few points people miss:

• The ₹40 lakh limit is only for businesses that supply goods alone. If you also supply any taxable service, the ₹20 lakh limit applies.
• Makers of certain notified goods, such as ice cream, pan masala and tobacco products, cannot use the ₹40 lakh limit.
• Once you cross the limit, you must apply for GST Registration within 30 days.

What counts in aggregate turnover — and what does not?

Included	Not included
Taxable sales of goods and services	The GST itself (CGST, SGST, IGST and cess)
Exempt supplies, such as fresh vegetables or certain educational services	Purchases on which you pay tax under reverse charge
Exports, including services billed to clients abroad	Money that is not a supply, such as capital introduced or a loan received
Sales to other states, and sales of all branches under the same PAN	The value of your own purchases

Because exempt supplies are counted, a business can cross the limit even when most of its sales carry no GST. But a person who supplies only exempt goods or services does not need to register at all.

Who needs mandatory GST Registration regardless of turnover?

• Businesses making inter-state supplies of goods.
• Casual taxable persons and non-resident taxable persons.
• Persons liable to pay tax under reverse charge.
• E-commerce operators, and many sellers who supply goods through e-commerce platforms.
• Input service distributors, and persons required to deduct or collect tax at source.
• Agents who supply on behalf of other registered persons.
• Suppliers outside India providing online information and database access or retrieval (OIDAR) services to unregistered persons in India.

A "casual taxable person" is someone who occasionally supplies in a state where they have no fixed place of business — for example, a stall at a trade fair in another state. Such persons must register before starting, and the Registration is valid for a limited period.

There are exceptions. Service providers with turnover below ₹20 lakh do not need Registration merely because they make inter-state supplies of services or sell through e-commerce platforms. Since 1 October 2023, small suppliers of goods within their own state can also sell through e-commerce platforms without Registration, subject to conditions. Check the current notification before relying on either exception.

Online sellers have their own set of rules, explained in the blog post Is GST Registration mandatory for e-commerce sellers on Amazon and Flipkart?

Who does not need to register?

• Businesses below the turnover limit that do not fall in any compulsory category.
• Persons supplying only goods or services that are exempt from GST or not taxable under GST.
• Agriculturists, for the supply of produce from cultivating their own land.

What happens once you cross the limit?

You have 30 days from the date you become liable to apply. If you apply within those 30 days, the Registration takes effect from the date you became liable. If you apply late, it takes effect only from the date it is granted — but the tax on sales made in the gap is still payable, with interest.

Practical scenarios

• A graphic designer in Pune billing ₹15 lakh a year to Indian clients. Below the ₹20 lakh limit for services, so GST Registration is not compulsory — even for clients in other states.
• A software developer earning ₹12 lakh from Indian clients and ₹10 lakh from a client abroad. Aggregate turnover is ₹22 lakh, because exports count. Registration is required.
• A small furniture maker in Mumbai with ₹10 lakh of sales who sends one order to Gujarat. An inter-state supply of goods, so Registration is needed regardless of turnover.
• A trader of goods with ₹35 lakh of sales who also earns ₹2 lakh a year from repair services. Because there is a taxable service, the ₹20 lakh limit applies, and Registration is required.

Freelancers and early-stage startups face a few specific questions, covered in the blog post GST Registration for freelancers, service providers and startups.

Should you register even when it is not compulsory?

Even when not mandatory, many businesses register because their clients, marketplaces or payment gateways ask for a GSTIN. See the lesson on voluntary GST Registration before deciding.

What are the common mistakes?

• Counting only one business or branch, when all supplies under the same PAN add up.
• Leaving out exempt sales or export receipts from the turnover total.
• Using the ₹40 lakh limit while also supplying a taxable service.
• Assuming low turnover is always safe when the business sells goods to other states.
• Waiting until the end of the year to check turnover, and missing the 30-day window.

Key takeaways

• ₹40 lakh for goods and ₹20 lakh for services in most states; lower in some special category states.
• Inter-state goods, reverse charge and e-commerce often need Registration from day one.
• Turnover is counted across all your businesses under one PAN, including exempt supplies and exports.
• Apply within 30 days of crossing the limit.