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GST

Tax Guide

What is GST registration threshold and when is it mandatory?

Key mapping

GST registration is mandatory when aggregate annual turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services) in a financial year. Special category states have lower thresholds of ₹20 lakh / ₹10 lakh.

Explanation

Under CGST Act Section 22, registration is mandatory when AATO exceeds ₹40 lakh for goods suppliers and ₹20 lakh for service providers in most states (regular category). Special category states (J&K, Uttarakhand, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Arunachal Pradesh, Sikkim) have thresholds of ₹20 lakh (goods) and ₹10 lakh (services). Additionally, mandatory registration regardless of turnover applies to: inter-state supply, e-commerce operators, persons liable to pay under RCM, casual taxable persons, and non-resident taxable persons. Composition scheme is available for suppliers with AATO ≤ ₹1.5 crore. Verify on the GST portal before filing.

Related terms and sections

GST registration40 lakh20 lakhthresholdmandatory registrationCGST Section 22composition

Use this in practice

GST Reconciliation →GSTR-3B Late Fee Calc →

Related sections

IT Act 2025 Section Mapper →All GST notices explained →

All section references are sourced from the Income Tax Act 2025 (official gazette, incometaxindia.gov.in) and cross-referenced against CBDT's comparative statement. Always verify on the official portal before filing. This page is for reference only and does not constitute legal or tax advice.