GST Registration Limit
Any business with a total annual turnover of more than INR 40 lakhs must pay the GST and the Goods and Services Tax. Therefore, such companies should register themselves under the Goods and Services Tax. The GST offers advantages of improving taxation proficiency, boosting economic growth, and creating a common national market.
If you own a business, you should be familiar with the fundamentals of GST. This blog helps you answer all your queries on GST, invoices, and aggregate turnover.
The Limit for GST Registration
Details on the GST registration limit Updates:
| Update Date | Guideline |
| 21st December 2021 | Aadhaar authentication is mandatory to apply for revocation of cancelled GST registration under the CGST Rule 23 in REG-21. |
| 29th August 2021 | Taxpayers can get extended time up to 30th September 2021 to revoke cancelled GST registration if the last date falls between 01st March 2020 and 31st August 2021. |
| 28th May 2021 | The due date to file an application for revocation of cancellation of registration falling between 15th April 2021 till 29th June 2021 is 30th June 2021. |
| 1st May 2021 | The time limit for taking measures under Rule 9 of the CGST Rules, 2017, which falls between 01st May 2021 and 31st May 2021, has been extended to 15th June 2021. |
| 5th March 2021 | The Search ARN Functionality for Registration, post-TRN Login has been enhanced for the taxpayers. |
Old Limits for Goods/Services:
The following listing will provide an overview of the previous and new limits.
| GST limit for registration | Registration Requirement Criteria | Applicability |
| Rs. 20 lakh and above. | Normal category states should register. | Till March 31, 2019 |
| Rs. 10 lakh and above | Special category states should register. | Till March 31, 2019 |
New Limits for Goods Sales:
| GST limit for registration | Registration Requirement Criteria | Applicability |
| Rs. 40 lakh and above. | Normal category states should register. | From April 01, 2019 |
| Rs. 20 lakh and above. | Special category states should register. | From April 01, 2019 |
GST Registration Limit for Services
The GST registration limit for services is as follows:
- For ordinary taxpayers– the limit was Rs. 20 lakhs, excluding the special category states, and it stays unchanged.
- For States in the Special Category– the GST registration limit for service providers in the hilly and northeastern states was Rs. 10 lakhs, which remains unchanged.
- Restrictions for Composition Schemes
- For traders and manufacturers– the limit was up to Rs. 1 crore in the previous fiscal year. However, there is an increase in the GST Registration Limit. Manufacturers and traders with an annual turnover of up to Rs. 1.5 Crores in the preceding fiscal year can register under GST as composition dealers.
- For restaurant service, only– the limit was up to an aggregate turnover of up to Rs. 1 crore in the preceding financial year. However, there is an increase in the GST Registration Limit. Accordingly, restaurant service providers holding an AATO of up to Rs. 1.5 crores in the preceding fiscal year can now register under GST as composition dealers.
State-wide GST Registration Limit:
| States that opted for a GST registration limit of Rs. 10 lakhs | The Normal States that opted for a limit of Rs. 20 lakhs | States that opted for GST registration limit 40 lakhs |
| Manipur | Meghalaya | Rest of the 21 states and the five union territories. |
| Nagaland | Arunachal Pradesh | |
| Tripura | Sikkim | |
| Mizoram | Uttarakhand | |
| Telangana | ||
| Puducherry |
What is an Audit Under GST?
The audit under GST is the inspection of records, returns and other documents maintained by a taxable person. This GST registration turnover limit audit authenticates the accuracy of turnover acknowledged, refund claimed, input tax credit availed, and the tax paid by a business.
Moreover, auditing can evaluate compliance with the provisions of GST. These audits can be of several kinds, like
- Audit by CA/ CMA if the threshold turnover exceeds INR 2 crores.
- Audit by the tax authorities.
- Special audits by the Assistance Commissioner after considering the case’s nature, complexity, and revenue interest.
GST Turnover Limit Calculation
Suppose you have the same PAN (Permanent Account Number) across all your business entities in India. Then you can calculate the GST turnover limit for the whole financial year as follows:
Taxable Supplies + Exempt Supplies + Exports + Interstate Supplies)-(Taxes+inward supply value+Reverse Charge Taxable Supplies Value + Non-Taxable Supplies Value)
FAQs on GST registration limit
What is the purpose of calculating aggregate turnover in GST?
Calculating the aggregate turnover in GST can decide the threshold limit for GST.
What constitutes a business's aggregate turnover in terms of GST?
AATO includes the value of all taxable supplies, exempt supplies, exports, and interstate supplies.
Furthermore, the value of all taxes, including the value of inward goods, supplies taxable under the reverse charge, and non-taxable supplies, are subtracted from the first.
Is it necessary to register under the GST for services?
You must register under the GST if your AATO exceeds INR 20 lakh for all the normal category states and INR 10 lakhs for special category states.