Under the Central Goods and Services Tax (CGST) Act, 2017, every business supplying goods or rendering services is governed by specific annual turnover thresholds. However, several categories of businesses are legally required to obtain a GST number regardless of their annual sales or revenue.
1. Statutory Aggregate Turnover Limits
You must register for GST within 30 days of crossing these turnover limits in a financial year:
- Suppliers of Goods: ₹40 Lakhs annual turnover for normal category states (₹20 Lakhs in Special Category States like Manipur, Mizoram, Nagaland, and Tripura).
- Service Providers: ₹20 Lakhs annual turnover for normal category states (₹10 Lakhs in Special Category States).
- Mixed Suppliers (Goods + Services): Applicable threshold is ₹20 Lakhs annual turnover.
2. Compulsory Section 24 Registration
Registration is compulsory from Day 1 with ₹0 turnover under Section 24 for:
- Inter-State Outward Supply: Supplying goods across state borders (e.g. Haryana to Delhi, UP, or Bihar).
- E-Commerce Sellers: Selling goods via Amazon, Flipkart, Meesho, JioMart, or quick-commerce platforms.
- Reverse Charge Mechanism (RCM): Businesses liable to pay tax under RCM (goods transport, legal services, etc.).
- Export of Goods or Services: Claiming zero-rated export benefits or refunds under LUT.
Why Take Voluntary GST Registration Below Threshold?
Many growing enterprises, freelancers, and startups voluntarily register for GST even before crossing the ₹20L/₹40L limit. Voluntary registration enables you to pass Input Tax Credit (ITC) to corporate buyers, win lucrative B2B purchase orders, establish business authenticity, and easily open a dedicated Current Bank Account in your firm's name.