GST registration: turnover thresholds and compulsory registration

When a business must register under GST: turnover thresholds (Section 22), cases needing registration regardless of turnover (Section 24), and how aggregate turnover is counted.

Threshold-based registration (Section 22)

• General threshold: aggregate turnover above ₹20 lakh (₹10 lakh in specified special category States).
• For persons exclusively supplying goods, the threshold was raised to ₹40 lakh by Notification 10/2019-Central Tax, except in certain States that did not opt for it. Check the State list in the notification.

Aggregate turnover (Section 2(6))

Aggregate turnover is computed on an all-India PAN basis. It includes taxable, exempt, export and inter-state supplies, and excludes GST itself and inward supplies taxed under reverse charge.

Compulsory registration regardless of turnover (Section 24)

Examples: persons making inter-state taxable supplies of goods, casual taxable persons, persons liable to pay tax under reverse charge, non-resident taxable persons, persons required to deduct TDS/collect TCS under GST, input service distributors, and persons supplying through e-commerce operators who collect TCS (with notified relaxations for some small suppliers).

Practical note

Apply within 30 days of becoming liable (Section 25). Many businesses register voluntarily to let B2B customers claim ITC.