GST Registration Limit
GST registration limits depend on the type of supply and the State or Union Territory from which the business operates. For most service providers, registration is generally required when aggregate turnover exceeds ₹20 lakh, or ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura. Eligible businesses dealing exclusively in goods may have a higher threshold of up to ₹40 lakh, subject to applicable State and eligibility conditions.
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. | Eligible suppliers dealing exclusively in goods should register after crossing the higher threshold, subject to the applicable conditions and exclusions. | States and Union Territories that opted for the higher threshold. |
| Rs. 20 lakh and above. | Suppliers of goods should register after crossing the applicable threshold. | Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand, and cases where the ₹40 lakh threshold is not available. |
GST Registration Limit for Services
The GST registration limit for services is as follows:
- For most States and Union Territories– the GST registration threshold for service providers is Rs. 20 lakh.
- For Manipur, Mizoram, Nagaland and Tripura– the GST registration threshold for service providers is Rs. 10 lakh.
- For inter-State services– suppliers making inter-State taxable supplies of services can remain exempt from registration while their aggregate turnover is within the applicable threshold, subject to current rules and any other compulsory-registration provisions.
- 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 for Services:
| GST registration limit | State or Union Territory applicability |
| Rs. 10 lakh | Manipur, Mizoram, Nagaland and Tripura |
| Rs. 20 lakh | All other States and Union Territories, including Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Telangana and 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 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:
Aggregate Turnover = Taxable Supplies + Exempt Supplies + Exports + Inter-State Supplies of persons having the same PAN across India
It excludes GST and cess charged on those supplies, as well as the value of inward supplies on which tax is payable under reverse charge.
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.