Common threshold references are ₹40 lakh for exclusive suppliers of goods in states that adopted the enhanced limit and ₹20 lakh for services in most states, with lower limits in specified states. These are not universal safe harbours: section 24 compulsory-registration rules, notifications and e-commerce/interstate exceptions must be checked.
Start with the law effective on the transaction date
This article was checked against official GST material available on 2026-07-29. Rates, exemptions, thresholds and portal steps can change. Match the exact supply, HSN/SAC, parties, state, place of supply and effective date to the implementing notification.
Do not file from a secondary headline alone. Keep the notification, classification working, invoices and reconciliations supporting the treatment.
Aggregate turnover formula
Include taxable supplies, exempt supplies, exports and interstate supplies of persons under the same PAN on an all-India basis. Exclude CGST, SGST/UTGST, IGST and cess, and exclude inward supplies on which tax is payable under reverse charge.
Goods threshold
The enhanced ₹40 lakh threshold is conditional on the state/UT adopting it and on exclusive supply of goods within the notification conditions. A business supplying services or excluded goods may not qualify.
Services and special states
The common service threshold is ₹20 lakh, with ₹10 lakh applying in specified special-category jurisdictions under the statutory framework. Use the registration state and current notification, not a generic Northeast list.
Compulsory registration and exceptions
Section 24 covers categories such as certain interstate suppliers, casual/non-resident persons, TDS/TCS persons, agents, ISDs and electronic-commerce situations. Later notifications provide important relaxations, so ‘every interstate or online seller must register’ is too broad.
Correct turnover example
If a PAN has ₹30 lakh taxable supplies, ₹5 lakh exports and ₹3 lakh exempt supplies, aggregate turnover is generally ₹38 lakh—not ₹32 lakh—because exempt supplies are included, not subtracted. GST collected is excluded.
When and where to register
Apply within the statutory period after becoming liable and obtain state-wise registration where required. Monitor rolling financial-year turnover, branch supplies, marketplaces, exports and changes in business model.
Need a transaction-specific GST review?
Get help with classification, registration, valuation, ITC, invoices and return treatment.
Request GST supportFrequently asked questions
Is exempt turnover subtracted?
No. Exempt supplies are generally included in aggregate turnover.
Is GST collected included?
No. GST and cess are excluded from aggregate turnover.
Is ₹40 lakh available everywhere?
No. It depends on state adoption and exclusive-goods conditions.
Must every interstate service provider register?
Not necessarily; notification-based exemptions may apply.
Did GST 2.0 change thresholds?
The official 56th Council FAQ says the goods threshold did not change.
Is turnover calculated GSTIN-wise?
Aggregate turnover is PAN-based across India, though registrations are state-wise.
