Yes, if your business's annual GST turnover (gross income minus GST) is $75,000 or more ($150,000+ for non-profits), you are legally required to register for GST, charge it on goods and services, and pay it to the ATO. You must register within 21 days of reaching or expecting to reach this threshold.
Work out your GST turnover
If you sell $80,000 worth of clothes in a year, you'd have to register for GST. This is because your GST turnover is over the $75,000 threshold – even if you only make $40,000 in profit.
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Businesses with annual revenues below these limits are not mandated to register for GST; however, they may opt to do so voluntarily.
You must register for the GST/HST. Your effective date of registration is no later than the day of the supply that made you exceed $30,000. You have to start charging GST/HST on the supply that made you exceed $30,000.
$75,000 Threshold for Businesses
Even if you don't hit this figure yet, it's essential to monitor your revenue closely. The ATO requires registration if you either: Have a current GST turnover of $75,000 or more. Expect your turnover to reach $75,000 in the next 12 months.
Individuals making Nil Rated and Exempt supplies (e.g., fresh milk) are also exempt. Those engaged in activities not covered under the supply of goods and services (e.g., petroleum products) do not require GST registration. Individuals supplying goods under reverse charge mechanisms do not need to register for GST.
GST Registration Threshold Limits (As of 2025)
₹40 lakhs: This is the threshold for GST registration in most Indian states. ₹20 lakhs: For special category states like Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Sikkim, Tripura, Nagaland, and Uttarakhand.
But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.
Almost everyone has to pay the GST/HST on purchases of taxable supplies of property and services (other than zero‑rated supplies). However, in some situations, individuals registered under the Indian Act, Indian bands and band‑empowered entities are relieved of paying the GST/HST on taxable supplies.
Goods and Services Tax (GST) 2.0 reform, which came into effect from September 22nd, 2025, brought relief for the common people and boosts for businesses. One of the key GST updates under 2.0 reform is that it simplified the GST tax structure from a 4-slab (5%, 12%, 18% and 28%) to a 3-slab (5%, 18% and 40%).
To qualify for the GST/HST credit, your adjusted net family income must be below a certain threshold, which for the 2024 tax year ranges from $56,181 to $74,201, depending on your marital status and how many children you have.
Who is liable to pay GST under the proposed GST regime? Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services.
Answer: If turnover of the entity is less than the limit of Rs. 20 lakhs in a financial year, no tax would be payable. The exemption from payment of tax is applicable to services provided to a business entity having a turnover up to Rs. 20 lakh rupees.
Key items exempted from GST:
Prepared foods and snacks: Vegetable trays, pre-made meals, salads, sandwiches, chips, candy, granola bars, etc. Dining: Restaurant meals (dine-in, takeout, or delivery). Beverages: Beer, wine, cider, and sake.
For Goods Suppliers: Businesses involved in the supply of goods must register for GST if their annual turnover exceeds Rs. 40 lakhs. For Service Providers: For those providing services, the registration threshold is Rs. 20 lakhs in annual turnover.
Short answer. If you're registered for GST, you must charge and collect GST. Sole traders and businesses who estimate they'll make $75,000 or more in business income in any given 12-month period have to register for GST.
Exemption Limit under GST is 20 Lakh - SSI units and Small Service Provider. The exemption limit is applicable only when supply (sale) is made within the state. Any supply outside the state will attract registration provisions. Is the exemption limit is liable to change?
GST registration is mandatory for all eCommerce Sellers Citizen can apply for New GST by Registrating online without Visiting the Govt. office.
With the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, the estate, gift, and generation-skipping transfer (GST) tax exemptions are permanently set at $15 million per individual (or $30 million for married couples) starting January 1, 2026, with inflation adjustments beginning in 2027.