Last updated: March 24th, 2023 11:39 AM

What is the limit for GST registration?

The Goods and Services Tax (GST) is a comprehensive tax system implemented in India since July 2017. It is a single unified tax system that subsumes most of the existing taxes, such as excise duty, value-added tax and service tax. The objective of the GST regime is to create a unified and transparent tax system in the country and to improve the ease of doing business. Under the GST, companies exceeding an annual turnover of more than Rs. 40 lakhs are mandatorily required to register for GST.

Eligibility for GST registration-

In addition to the registration limits, there are several other conditions which need to be taken into consideration while registering for GST. These conditions include the nature of business, the type of goods or services being supplied and the place of supply. Apart from the statutory registration limit, businesses can also opt for voluntary GST registration even if their turnover is lower than the registration limit. Voluntary registration benefits companies as it enables them to avail the advantages of input tax credit, issue tax invoices, claim refunds and avail other benefits provided under the GST regime.

What is the turnover limit for GST registration?

According to recent amendments, the government has increased the limit from Rs. 20 lakhs to Rs. 40 lakhs in most states. This means that any business with an annual turnover of Rs 40 lakhs or more is required to obtain GST registration. The threshold limit of Rs 40 lakhs (for goods) and Rs. 20 lakhs (for services) is applicable to all businesses except those located in the North-Eastern states. For these states, the GST registration threshold limit is Rs 10 lakhs. The special category states include-

• Arunachal Pradesh
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
• Himachal Pradesh
• Uttarakhand

Note: The threshold limit for GST registration is subject to change from time to time. The government makes changes in the threshold limit based on the economic conditions of the country and the needs of the taxpayers. Therefore, businesses should always keep track of the latest GST registration threshold limit and ensure that their GST registration is updated accordingly. In conclusion, GST registration is mandatory for companies with an annual turnover exceeding Rs. 40 lakhs. Businesses can also opt for voluntary registration even if their turnover is lower than the registration limit. To get the maximum benefit from GST, companies should understand the registration requirements and should comply with them.