GST registration threshold: who must register in 2026
Not every business needs a GST registration; it depends on your turnover, the type of supply, and your state. Here are the exact thresholds and the cases where registration is compulsory regardless of turnover.
Updated 2026-05-30 · A reference guide from Ledgester
Key facts
- Goods suppliers in most states must register if aggregate turnover exceeds ₹40 lakh in a financial year.
- Service providers must register if turnover exceeds ₹20 lakh (₹10 lakh in special-category states).
- Certain businesses must register regardless of turnover, including inter-state suppliers, e-commerce operators, and casual taxable persons.
- Registration is mandatory from the day the threshold is crossed, not at the start of the next year.
The standard turnover thresholds
| Type of supply | Most states | Special-category states* |
|---|---|---|
| Goods (manufacturer or trader) | ₹40 lakh | ₹20 lakh |
| Services | ₹20 lakh | ₹10 lakh |
| Goods + services (mixed) | ₹20 lakh | ₹10 lakh |
* Special-category states (lower threshold applies): Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura, Uttarakhand, and Himachal Pradesh. Manipur, Mizoram, Nagaland and Tripura have a ₹10 lakh limit for both goods and services.
What counts as "aggregate turnover"?
Aggregate turnover is the total of all taxable supplies, exempt supplies, exports, and inter-state supplies, calculated at the PAN level across all GST registrations. It does not include inward supplies on which reverse charge is paid, or CGST, SGST, IGST amounts.
Who must register regardless of turnover
Section 24 of the CGST Act lists 14 categories that must register compulsorily, even if their turnover is below the threshold:
- Inter-state suppliers of goods or services (with some exceptions for small service providers).
- Casual taxable persons (those who supply occasionally in a state where they have no fixed business).
- Non-resident taxable persons.
- Persons paying tax under reverse charge (Section 9(3) or 9(4)).
- E-commerce operators required to collect tax at source (TCS).
- Suppliers through an e-commerce operator who is liable to collect TCS.
- Input Service Distributors (ISD).
- Persons required to deduct TDS under Section 51.
When does registration take effect?
You must apply for registration within 30 days of the date on which you first become liable. Liability arises on the day you cross the threshold, not at the start of the next financial year. If you are a casual taxable person or a non-resident, you must register at least 5 days before commencing business.
Voluntary registration
You can register voluntarily even if your turnover is below the threshold. A voluntary registration gives you the ability to issue tax invoices, claim ITC on purchases, and supply inter-state without restriction, but it also brings all GST compliance obligations.
Frequently asked questions
- What is the GST registration threshold in 2026?
- For goods suppliers in most states, the threshold is ₹40 lakh aggregate turnover. For service providers it is ₹20 lakh (₹10 lakh in special-category states like Manipur, Mizoram, Nagaland and Tripura).
- Does a freelancer need to register for GST?
- A freelancer providing services must register once aggregate turnover exceeds ₹20 lakh in a financial year (₹10 lakh in special-category states). If supplying services inter-state, registration is mandatory regardless of turnover.
- Is GST registration compulsory for an e-commerce seller?
- Yes. Suppliers who sell through e-commerce operators (Amazon, Flipkart, etc.) that collect TCS must register compulsorily, regardless of their turnover.
- What happens if I miss the GST registration deadline?
- Failure to register when liable attracts a penalty of ₹10,000 or the amount of tax evaded, whichever is higher, under Section 122. Interest at 18% per annum also applies on any tax due.
This guide is general information, not professional tax advice, and GST rules change through CBIC notifications. Verify the current position for your situation or consult a qualified professional before acting.