General information, not professional advice. GST rules, rates and due dates change by notification. Check the current position on the GST Portal or with your CA before you act on anything here.
The short version
- Goods: ₹40 lakh in most states, ₹20 lakh in the special category and some opted-out states. Services: ₹20 lakh, and ₹10 lakh in special category states.
- Aggregate turnover is PAN-level and all-India: taxable, exempt, exports and inter-state supplies, excluding GST itself.
- Some people must register from the first rupee, including inter-state suppliers of goods, casual taxable persons and those liable under reverse charge.
- E-commerce sellers have their own rules, with a narrow exemption for small intra-state suppliers of goods.
- Voluntary registration is worth it when your buyers are registered and want credit from you.
The turnover limits
| What you supply | Most states | Special category states |
|---|---|---|
| Goods | ₹40 lakh | ₹20 lakh |
| Services | ₹20 lakh | ₹10 lakh |
The ₹40 lakh limit for goods applies to states that adopted it; a few states stayed at ₹20 lakh, and a business supplying both goods and services is generally tested against the lower services limit. Your own state's position is the one that counts.
What counts as aggregate turnover
Aggregate turnover is computed on the PAN, across all of India, and includes:
- Taxable supplies
- Exempt supplies
- Exports
- Inter-state supplies between your own registrations
It excludes GST itself and, importantly, excludes the value of inward supplies on which you pay tax under reverse charge. Two shops in two states under one PAN are added together, which is the part that catches people who think of each shop separately.
Register regardless of turnover
Some categories must register from the first supply:
- Persons making inter-state taxable supplies of goods. Service providers have a relief here up to the threshold.
- Casual taxable persons, such as someone taking a stall at an exhibition in another state.
- Persons liable to pay tax under reverse charge.
- Non-resident taxable persons.
- Agents supplying on behalf of others, and input service distributors.
- Persons required to deduct TDS or collect TCS under GST.
- Suppliers of online information and database access services from outside India to an unregistered person in India.
Selling online
Selling through an e-commerce operator has generally meant compulsory registration. A narrow exemption now lets small suppliers of goods sell intra-state through an operator without registering, subject to conditions including staying within the threshold and having a PAN. Service providers using an operator have their own limited relief. If you sell on a marketplace, confirm the current position for your exact case before relying on the exemption.
When registering early pays
Registration is not only an obligation, it is sometimes a sales decision:
- Your buyers are registered businesses. Without a GSTIN you cannot give them credit, so your price is effectively higher than a registered competitor's.
- You buy a lot with GST on it. Unregistered, that tax is a cost. Registered, it is credit.
- You are about to cross anyway. Registering before the rush beats registering in the week you exceed the limit.
The cost is real too: returns every month or quarter, invoices in the prescribed format, and records to keep. Voluntary registration can be cancelled, but not casually.
After you cross the line
Apply within 30 days of becoming liable. A casual or non-resident taxable person applies at least five days before starting business. Registration is effective from the date you became liable if you applied in time, which matters for the credit on your opening stock.
What to keep ready is in the registration documents checklist.
Working before and after a GSTIN
AawazAI works fully for an unregistered business: sales, purchases, khata, stock and reports all behave the same, and bills come out as cash memos with no GST on them. Add your GSTIN in Settings the day you register and the same sales start producing tax invoices with HSN, the right tax split and the month's GSTR summaries. Nothing has to be re-entered.
Books that do not care whether you are registered yet
AawazAI records your sales, khata and stock either way, and starts issuing tax invoices the day you add a GSTIN. Nothing is re-entered.
Frequently asked questions
What is the GST registration limit in India?
For goods it is ₹40 lakh of aggregate turnover in most states and ₹20 lakh in special category states. For services it is ₹20 lakh, and ₹10 lakh in special category states. A few states kept the lower limit for goods, so check your own state.
What is aggregate turnover?
The all-India turnover on one PAN: taxable supplies, exempt supplies, exports and inter-state supplies between your own registrations, excluding GST itself and excluding inward supplies taxed under reverse charge.
Who must register for GST regardless of turnover?
Inter-state suppliers of goods, casual and non-resident taxable persons, those liable under reverse charge, agents, input service distributors, and persons required to deduct TDS or collect TCS, among others.
Do I need GST registration to sell on Amazon or Flipkart?
Historically yes. A narrow exemption now allows small intra-state suppliers of goods to sell through an operator without registering, subject to conditions. Confirm the current position for your case before relying on it.
Is voluntary GST registration worth it?
It is if your customers are registered businesses who want input credit from you, or if you pay a lot of GST on purchases that would otherwise be a cost. The trade is regular return filing and record keeping.
How long do I have to register after crossing the threshold?
Thirty days from becoming liable. A casual or non-resident taxable person applies at least five days before starting business.