In India, the GST registration exemption threshold is generally ₹40 lakhs for businesses supplying goods and ₹20 lakhs for service providers. For special category/hilly states, these limits are reduced to ₹20 lakhs for goods and ₹10 lakhs for services.
Beginning January 1, 2026, the federal estate, gift, and generation-skipping transfer (GST) tax exemptions will be $15,000,000 per individual and $30,000,000 for married couples, indexed for inflation. Without this legislation, the exemption would have reverted to about $7,000,000 per person.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
GST exemption from registration
A person whose turnover falls below the threshold exemption limit—INR 40 lakhs for goods, INR 20 lakhs for services, and INR 20 lakhs (or INR 10 lakhs in special category states) for specified categories.
The GST/HST break includes certain qualifying goods, such as:
Small businesses in Australia who turn over less than $75,000 per year don't have to pay GST. If you're a registered not-for-profit, you also don't have to pay GST as long as your turnover is less than $150,000. If you run a taxi service or are an uber driver, for example, you must always pay GST, regardless of income.
40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
Businesses dealing in goods are exempt from GST if their annual aggregate turnover is below INR 40 lakhs. For businesses in hilly and northeastern states, this threshold is reduced to INR 20 lakhs to address regional challenges. Service providers are exempt from GST if their turnover is under INR 20 lakhs annually.
Non-resident Indians have the same rights as Indian citizens when it comes to Goods and Services Tax (GST) exemptions. If a Non-Resident Indian meets the criteria set out in the applicable law, he/she can avail of this benefit.
You have to start charging GST/HST on the supply that made you exceed $30,000. You exceed the $30,000 threshold 1 over the previous four (or fewer) consecutive calendar quarters (but not in a single calendar quarter).
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.
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.
$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.
Tax-free income in new tax regime (Financial Year 2025-26)
The basic exemption limit has been raised to Rs. 4 lakh, providing immediate relief to taxpayers. Moreover, the rebate under Section 87A has been increased to Rs. 60,000 for taxable incomes up to Rs. 12 lakh.
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
The GST exemption essentially allows the earmarking of transfers, made during lifetime or at death, that either skip a generation or are made in trust for multiple generations.
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.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
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.
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.
Turnover in the state under GST refers to the total value of supplies of goods or services made within a specific state. This includes taxable supplies, exempt supplies, and exports made from that state, but excludes inter-state supplies and inward supplies on which tax is payable under reverse charge.
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.
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.
When to register for GST. You must register for GST as soon as you think you'll earn more than $60,000 in 12 months – whether you're a sole trader, a contractor, in partnership or a company. You may be charged penalties if you don't register when you need to.