“Do I need GST registration?” is one of the most searched GST questions, and the answer is not one number. It depends on where you supply from, whether you supply goods or services, what you sell, and whether any of your supplies make registration compulsory regardless of turnover. For CA Inter, ICAI tests exactly this mix through short case studies. Here is the whole picture, with ICAI’s own examples.
The short answer: threshold by State
Registration is required in a State or Union territory from where you make taxable supplies once your aggregate turnover in the financial year exceeds the limit below.
| Where you supply from | Only goods | Services, or goods and services |
|---|---|---|
| Manipur, Mizoram, Nagaland, Tripura | ₹10 lakh | ₹10 lakh |
| Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry, Telangana | ₹20 lakh | ₹20 lakh |
| All other States and UTs, including Jammu and Kashmir, Assam and Himachal Pradesh | ₹40 lakh | ₹20 lakh |
The ₹40 lakh limit for goods is not a separate section. Section 22 sets ₹20 lakh, and ₹10 lakh for the four special category States listed in it. Notification No. 10/2019-CT then exempts suppliers of only goods with turnover up to ₹40 lakh, with exceptions explained below.
Map view
GST registration limit for suppliers of only goods, State by State
The number on each tile is the limit in lakh for a supplier of only goods. This is a schematic tile map, not drawn to scale. The three tiles in the bottom row are Andaman and Nicobar Islands, Lakshadweep, and Dadra and Nagar Haveli and Daman and Diu.
Memory hook: the whole North-East is shaded except Assam. Add Uttarakhand, Telangana and Puducherry. Everything else is ₹40 lakh for goods.
Quick check
Why
Telangana is one of the States where the ₹40 lakh exemption does not apply, so the limit is ₹20 lakh. His ₹22 lakh exceeds it. This is an ICAI Study Material example.
Quick check
Why
For registration, only Manipur, Mizoram, Nagaland and Tripura are special category States. Assam gets the ₹40 lakh limit for suppliers of only goods, and ₹22 lakh is below it.
What counts in aggregate turnover
Aggregate turnover is computed on an all-India basis for all registrations under the same PAN. It includes:
- taxable supplies;
- exempt supplies, which include non-taxable supplies such as petrol and diesel;
- exports of goods and services;
- inter-State supplies to your own establishments in other States;
- supplies made on behalf of principals, if you are an agent.
It excludes:
- the GST itself (CGST, SGST, UTGST, IGST and cess);
- inward supplies on which you pay tax under reverse charge.
From practice
Two figures are easy to mix up. A fuel station that sells lubricants (taxable) and diesel (outside GST) still counts the diesel sales in its aggregate turnover, so a small lubricant business can cross the threshold because of its fuel sales. A company with depots in several States adds up every State’s turnover, including stock transfers between its own GSTINs, before comparing with the limit.
The ₹40 lakh limit: who gets it
The higher limit is available only to a person who is exclusively engaged in supplying goods. Interest earned on deposits, loans or advances does not break this, because those exempt services are ignored for the purpose. The ₹40 lakh limit is not available to:
- persons required to register compulsorily under section 24;
- suppliers of ice cream and other edible ice, pan masala, tobacco and tobacco substitutes, fly ash bricks, aggregate and blocks, bricks of fossil meals, building bricks, and earthen or roofing tiles;
- persons making intra-State supplies in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand;
- persons who have taken voluntary registration, or registered persons who choose to continue their registration.
Branches in more than one State
If a business with places of business across India has even one branch in Manipur, Mizoram, Nagaland or Tripura from which it makes a taxable supply, the limit for the whole business drops to ₹10 lakh. Once liable, it must register in every State from which it makes taxable supplies. In an ICAI example, a garment trader supplying from both Assam and Tripura is liable at ₹10 lakh and must register in both States.
Compulsory registration under section 24
These persons must register whatever their turnover:
- persons making inter-State taxable supplies (suppliers of services, and of certain handicraft goods, get relief up to the threshold);
- casual taxable persons;
- persons liable to pay tax under reverse charge;
- e-commerce operators who pay tax under section 9(5);
- non-resident taxable persons;
- persons required to deduct tax at source under section 51;
- persons making taxable supplies on behalf of other taxable persons, as agents or otherwise;
- input service distributors;
- persons supplying through an e-commerce operator that collects tax at source, other than supplies under section 9(5), with relief for services up to the threshold and for intra-State goods suppliers who meet notified conditions;
- e-commerce operators required to collect tax at source;
- persons outside India supplying online information and database access or retrieval services to unregistered persons in India, or online money gaming to persons in India;
- any other person notified by the Government on the Council’s recommendation.
Think first
A trader in Delhi has intra-State taxable sales of ₹15 lakh this year. He sends one consignment of goods worth ₹50,000 to a customer in Jaipur. Does he need to register?
Show answerHide answer
Yes. A person making an inter-State taxable supply of goods must register under section 24, whatever his turnover. The threshold relief for inter-State supplies applies to services and certain handicraft goods, not to ordinary goods.
Who need not register
Section 23 and the notifications under it exempt:
- persons supplying only goods or services that are not liable to tax or are wholly exempt;
- agriculturists, for the supply of produce from cultivating land;
- persons whose only supplies are those on which the recipient pays the full tax under reverse charge (metal scrap suppliers are carved out of this relief);
- persons supplying services inter-State, and handicraft goods, up to the threshold;
- suppliers of services through e-commerce operators up to the threshold, and intra-State goods suppliers through e-commerce operators who meet the notified conditions.
When to apply, and from when registration is effective
- Apply within 30 days from the date you become liable to register.
- Casual taxable persons and non-resident taxable persons apply at least 5 days before they start business.
- If you apply within 30 days, registration is effective from the date you became liable. If you apply later, it is effective from the date it is granted.
- Anyone can register voluntarily, even below the limit, for example to let business customers claim credit.
Exam lens
In registration questions, write three steps every time: (1) which limit applies, with the reason (State, goods or services, notified goods); (2) aggregate turnover, with what you included or excluded; (3) the conclusion, and in which States registration is needed. Many students jump straight to step 3 and lose most of the marks.
Flashcards · 6 cards
Registration in 6 cards
Try to answer first, then tap the card to check.
Once you know whether you must register, the next question is how you will be taxed. Small taxpayers can look at the composition scheme under section 10, and every registered person should know which credits are blocked under section 17(5). To see where registration sits among the 15 chapters, use the CA Inter GST syllabus and 12-week plan. Applications are made on the GST Portal, and the law is available on the CBIC GST website.
Frequently asked questions
What is the GST registration limit for services?
₹20 lakh of aggregate turnover in a financial year, or ₹10 lakh if you supply from Manipur, Mizoram, Nagaland or Tripura. The ₹40 lakh limit applies only to suppliers of goods.
Is GST registration compulsory for inter-State sales?
Yes, for inter-State taxable supplies of goods, whatever the turnover. Suppliers of services, and of certain handicraft goods, making inter-State supplies need to register only after crossing the threshold.
Is the ₹40 lakh limit available in every State?
No. It is not available in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand, and not to suppliers of ice cream, pan masala, tobacco, specified bricks and tiles.
Does exempt turnover count towards the registration limit?
Yes. Aggregate turnover includes exempt and non-taxable supplies. But a person supplying only exempt or non-taxable goods or services does not need to register at all.
Within how many days must I apply for GST registration?
Within 30 days of becoming liable. Casual taxable persons and non-resident taxable persons must apply at least 5 days before starting business.
Can I register for GST voluntarily below the limit?
Yes. Voluntary registration is allowed. Once registered, you must follow all the provisions that apply to a registered person, and the ₹40 lakh exemption no longer applies to you.
Related reading
- Composition scheme under GST: limits, rates and eligibility
- Supply under GST (Section 7): CA Inter notes
- CA Inter GST syllabus and 12-week study plan for May 2027
Free for the May 2027 batch
Learn GST the way it is applied at work
CA Inter GST (Paper 3, Section B) by CA Vivek Kumar: short lectures in Hinglish, a concept-check MCQ after every concept, study notes, revision notes and past-paper practice for every chapter.
Note
Based on Chapter 9 (Registration) of the ICAI BoS Study Material, Intermediate Paper 3 Section B, for May 2027, September 2027 and January 2028 (law as amended up to 30.04.2026). Last reviewed 15 October 2026.