GST turnover limit in India decides whether a business must register under GST or not. Many small business owners are confused about this limit and end up either delaying registration or registering unnecessarily.
If you are unsure about GST rules, you should also read our complete GST registration guide to understand the full process, documents and timelines. If you want to apply directly, you can check our GST registration service for expert assistance.
Small businesses may also benefit from MSME registration and Google Business Profile setup for government schemes and local visibility.
Many business owners in India believe that GST registration is required only for big companies. In reality, GST rules are based on turnover limits and business activities, not company size.
In this guide, you will learn the latest GST turnover limit in India, when registration becomes mandatory, exceptions to the limit, and how to check your eligibility easily.
Table of Contents
What is GST Turnover Limit?
GST turnover limit is the minimum annual business income after which GST registration becomes compulsory. The government sets different limits for goods sellers and service providers to protect small businesses from unnecessary compliance.
What is Considered as Turnover Under GST?
GST turnover is calculated based on aggregate turnover, which means the total value of all taxable supplies, exempt supplies, exports and inter-state supplies under the same PAN.
Even if you run multiple small businesses under one PAN, all income is added together to calculate the GST turnover limit. Many business owners cross the limit unknowingly because of this rule.
Current GST Turnover Limit in India (Latest Updated)
- Service Providers: ₹20 lakh per year
- Goods Sellers: ₹40 lakh per year
- Special Category States: ₹10 lakh
These limits apply to the total turnover of all businesses under the same PAN across India.
Does GST Turnover Limit Differ by State?
In most Indian states, the GST turnover limit is the same. However, some special category states have lower threshold limits to protect small local businesses.
If your business operates from or supplies to special category states, it is important to check the exact limit applicable to you. Registering late can attract penalties even if you were unaware of the rule.
You can also verify GST rules on the official government portal.
When is GST Registration Mandatory Even Below Turnover Limit?
In certain cases, GST registration is compulsory even if your turnover is below the threshold.
- Selling on Amazon, Flipkart, Meesho, etc.
- Providing inter-state services
- Import or export of goods or services
- Supplying through e-commerce operators
- Businesses under reverse charge
Even if your income is low, GST turnover limit in India does not apply to these cases and registration becomes compulsory.
GST Turnover Limit Examples for Small Businesses
Let us understand GST limits using practical examples.
- A tailor earning ₹12 lakh locally → GST not mandatory
- Freelancer serving clients in other states → GST mandatory
- Home baker selling via Instagram with delivery → GST mandatory
- Retail shop with ₹45 lakh turnover → GST mandatory
What Happens If You Cross the GST Limit and Don’t Register?
Continuing business after crossing the turnover limit without GST registration can attract penalties and legal action.
- Penalty equal to tax due
- Interest on unpaid tax
- Business notices from department
- Bank account complications
How to Check If You Need GST Registration
Instead of guessing, it is best to check your eligibility based on business model, turnover and location.
- Annual turnover amount
- Business activity type
- Selling platforms
- State-wise operations
Learn More About GST Registration Process
If you are new to GST, you should also read our complete guide that explains documents, process and timelines in detail.
GST Registration in India Complete Guide
If you want expert help, you can apply directly through our GST registration service
Many businesses also require other registrations like MSME Registration and Google Business Profile to grow faster and get government benefits.
Not Sure If You Need GST? Get Free Guidance
Our experts can check your GST turnover limit in India and guide you correctly.
If you are confused about GST eligibility or turnover rules, our experts at LocalGrow Digital can guide you based on your exact business model.
Frequently Asked Questions on GST Turnover Limit
What is the GST turnover limit in India?
For service providers the limit is ₹20 lakh and for goods sellers it is ₹40 lakh per year in most states.
Is GST required below 20 lakh turnover?
Normally no, but GST is mandatory for online sellers, inter-state services, imports, exports and e-commerce suppliers.
Does turnover include exempt supplies?
Yes, GST turnover is calculated using aggregate turnover which includes exempt and taxable supplies under the same PAN.
Is GST mandatory for freelancers?
If freelancers provide inter-state services or cross ₹20 lakh turnover, GST registration becomes compulsory.
What happens if I cross GST limit and don’t register?
You may face penalties, interest on tax and legal notices from the GST department.