Who Needs GST Registration in India? Threshold, Aggregate Turnover and Exceptions

GST registration should not be reduced to a single "Rs. 20 lakh or Rs. 40 lakh" answer. The correct position depends on aggregate turnover, nature of supply, state, compulsory-registration provisions and exemptions.

For registration support, see GST Services.

Basic threshold framework

Section 22 of the CGST Act provides registration liability based on aggregate turnover in a financial year. The base threshold in the Act is Rs. 20 lakh, with a lower threshold for specified special category states. Separate notifications and state choices have affected thresholds for exclusive suppliers of goods in many cases, so the higher goods threshold should not be applied blindly to every business.

Because exceptions matter, always review the current facts rather than relying on a single number.

Aggregate turnover

Aggregate turnover is computed on an all-India PAN basis. It broadly includes:

• taxable supplies;
• exempt supplies;
• exports;
• inter-state supplies;
• supplies made by the person on own account or on behalf of principals.

It excludes GST taxes and inward supplies on which tax is payable under reverse charge.

Compulsory registration cases

Section 24 lists categories requiring registration regardless of normal threshold, such as:

• inter-state taxable supply, subject to exceptions/notifications;
• casual taxable person;
• non-resident taxable person;
• persons liable under reverse charge;
• tax deductors/collectors under GST;
• input service distributor;
• specified e-commerce-related supplies/operators;
• other notified persons.

When registration may not be required

Persons exclusively engaged in wholly exempt or non-taxable supplies, and agriculturists to the extent of produce out of cultivation of land, are generally not liable under Section 23.

E-commerce and inter-state issues

E-commerce rules and inter-state supplies have specific exceptions and conditions. Section 24 covers specified e-commerce-related supplies/operators, but notifications and Section 9(5) treatment may change the result for particular supply models. Service providers and goods suppliers can be treated differently depending on notifications and facts. If the business sells through platforms or outside the State, review registration before starting.

Voluntary registration

Voluntary registration can be useful for B2B credibility or input-tax-credit chain, but it also brings return filing, tax payment, invoicing and record obligations. It should be a business decision, not just a formality.

Documents and process

For documents, see GST registration document checklist. Companies/LLPs may also need connected support for Company Registration & ROC Compliance. Some signatories may require Digital Signature Certificate depending on constitution and portal requirement.

Official references

• CGST Act Sections 22, 23, 24 and 25, CBIC
• CBIC GST sectoral FAQ on registration and aggregate turnover
• CBIC GST FAQ

This article is reviewed in July 2026. GST registration applicability is fact-specific and should be confirmed before acting.