In India, as of 2026, the GST registration threshold for businesses exclusively supplying goods is an annual turnover exceeding ₹40 lakh, while for service providers, it is over ₹20 lakh. For special category states, these limits are lower, typically ₹20 lakh for goods and ₹10 lakh to ₹20 lakh for services.
Businesses with annual sales of Rs. 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.
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.
GTAs with an annual turnover exceeding ₹20 lakh (or ₹10 lakh for special category states) must register under GST unless their services exclusively fall under the Reverse Charge Mechanism (RCM).
GST Registration Threshold: Restaurants with an annual turnover exceeding Rs. 20 lakhs are legally required to register under GST. Voluntary registration is possible for restaurants with a turnover below Rs. 20 lakhs.
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.
A regular scheme applies to larger restaurants and establishments, which include hotels. Under this scheme, GST on hotels & restaurants is generally 5% without ITC or 18% with ITC for hotel-based dining rooms where the tariff exceeds ₹7,500 per night.
Goods and services tax credit
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined.
In industry and commerce, transportation of goods by road is commonly carried out by the following 3 principal modes: Goods Transport Agency (GTA) – a transporter who gives a consignment note. Goods Transport Operator (GTO) – a transporter who does not give a consignment note, but offers a chllan or kachcha bill.
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.
In conclusion, the minimum GST registration limit for mandatory GST registration in India is Rs. 40 lakh for most businesses, with a lower threshold limit for GST registration of Rs. 10 lakh applicable in special category states.
Registration under GST is mandatory for all businesses whose annual turnover exceeds Rs 40 lakhs in a financial year. This threshold is Rs 20 lakhs for special category states such as Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
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)
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)
Here's what you need to know about the relevant threshold and how it affects your business or enterprise. The GST threshold for 2025 is $75,000 in annual GST turnover for most businesses. If your GST turnover exceeds this amount in any rolling 12-month period, you must register for GST within 21 days.
GST registration is mandatory for all eCommerce Sellers Citizen can apply for New GST by Registrating online without Visiting the Govt. office.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
Luxury cars exceeding 4 metres in length will attract a 40% GST rate compared to the previous rate of 28%.
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.
You may be eligible if: You are 19 years or older, or. You have (or had) a spouse or common-law partner, or. You are (or were) a parent living with your child.
The 40% GST slab is now the highest GST rate in India and applies to a very specific set of goods and services.
Compliance & Procedural Changes
From April 1, 2025, Input Service Distributor (ISD) registration will be compulsory for businesses having multiple Goods & Services Tax Identification Numbers (GSTINs). The time limit for the validity of an E-Way bill will be 180 days, and it can be extended to 360 days.
1% is the GST composition scheme rate for manufacturers and traders. 5% is the GST composition rate for restaurants not serving alcohol whereas 6% is the GST composition scheme rate for other service providers. GST composition scheme turnover limit is currently Rs.1.5 crore.
Under GST, Restaurants fall under the 5% GST rate, with no option to claim input tax credit (ITC) or the 18% GST rate, with ITC claims. GST rate is decided depending on the location of the restaurant.