In India, for the financial year 2025-26, the GST registration threshold for an unregistered dealer is generally ₹40 lakh for exclusive suppliers of goods and ₹20 lakh for service providers (or those mixing goods and services). These limits are reduced to ₹20 lakh/₹10 lakh respectively for special category states.
In India, businesses with annual turnover over Rs. 40 lakhs (Rs. 20 lakhs in special category states) must register for GST. What is the minimum turnover to register for GST? Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST.
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.
If the ATO discovers you've been charging GST without being registered, you could face: Refunding GST to Customers: You'll need to pay back the GST you've charged, even if you've already spent it. Financial Penalties: The ATO may hit you with fines, interest charges, and audits.
If you have exceeded the threshold you must register for GST. You reach the GST turnover threshold if either: your current GST turnover – your turnover for the current month and the previous 11 months – totals $75,000 or more ($150,000 or more for non-profit organisations)
According to Notification No. 10/2019, any business engaged exclusively in the supply of goods must register for GST if the annual turnover exceeds ₹40 lakhs. To qualify for the ₹40 lakh limit, the following conditions must be met: The supplier must not provide any services.
Accordingly, wherever a registered person procures supplies from an unregistered supplier, he need to pay GST on reverse charge basis.
Buying from non-registered suppliers
If you buy goods or services from an unregistered person, they will not charge GST. This normally means you cannot claim GST on the purchase. For some special supplies, such as secondhand goods, you may still be able to claim a GST adjustment.
Can I Charge GST If I'm Not Registered for GST? You can't charge GST if you aren't registered for GST. Although the onus is generally on the purchaser to make sure that you've registered for GST if you're charging it, they may report you to the ATO if you've incorrectly charged GST.
GST Exemption Limit
Under the Goods and Services Tax (GST) regime in India, businesses whose annual revenue exceeds specific thresholds are required to register and pay GST. Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services.
Working out your GST turnover
Your GST turnover is your total business income (not your profit), minus: GST included in sales to your customers. sales to associates that aren't for payment and aren't taxable. sales not connected with an enterprise you run.
Please tell if rental income up to 20 lacs attracts GST or attracts any other charge? GST is leviable only if aggregate turnover is more than 20 lacs.
Adhering to the GST invoice norms, an unregistered dealer under GST invoice format should also feature a predetermined template. For invoices with a value greater than ₹50,000, the bills must display: Recipient's name and address. Delivery address.
GST Turnover Limit for Goods Suppliers
If you are supplying goods only, then in normal states the gst threshold limit for registration is ₹ 40 lakh per year. In special category states the limit is typically ₹ 20 lakh.
Ans: In case of unregistered dealer, recipient will pay tax on reverse charge basis. He can get the ITC provided he fulfills other conditions as mentioned in section 16 of the CGST Act, 2017.
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).
Heavy Penalties and Fines
If you are liable to register for GST but fail to do so, you are considered in violation of GST law. As per the GST Act: A penalty of ₹10,000 or 10% of the tax due, whichever is higher, is applicable. If tax evasion is found to be intentional, the penalty can go up to 100% of the tax due.
But common practice is to include:
A, a registered person under GST, buys goods from a person who is not registered under the Act for Rs. 4,000/-. In this case, he is not required to pay tax under reverse charge mechanism because purchases in a day have not exceeded Rs. 5,000/-.
If you're not registered, it doesn't matter what you purchase and if there is GST on the suppliers invoice, you can't claim it or enter it anywhere, it's just not relevant to you.
It is important to note that the RCM does not apply to all purchases from unregistered dealers. The government has exempted purchases below INR 5,000 per day from the RCM. This exemption applies to all types of purchases, including goods and services.
The GST rates in India have been simplified to three main slabs: 5%, 18%, and 40%. The 5% rate applies to essentials and common household goods, the 18% rate is the new standard for most consumer products and services, and the 40% rate is for luxury and "sin" goods.
For example, for the financial year 2024-25, the GST filing last date will be 31st Dec 2025. Moreover, businesses with an annual turnover exceeding ₹5 crore have to file GSTR-9C, a reconciliation statement certified by a Chartered Accountant. Its due date is also 31st December, following the end of the financial year.
Check if your business needs to register for GST
You must register for GST if: your business has a GST turnover of $75,000 or more. your non-profit organisation has a GST turnover of $150,000 or more.