GST · Compliance Insights
GST registration isn’t just a matter of “have I crossed a turnover number.” The nature of what you sell — goods, services, or a mix of both — changes the threshold that applies to you, and in some cases removes the threshold altogether. Here’s what to check before you register, or before you assume you don’t need to.
If you provide only services
Businesses offering consultancy, commission-based work, brokerage, professional services, or freelancing must register for GST once annual turnover crosses ₹20 lakh.
If you deal only in goods
For businesses purely in trading, manufacturing, wholesale, retail, or distribution, the standard registration threshold is higher — ₹40 lakh.
The part most businesses miss
If you deal in goods but also earn any service income alongside it — commission, consultancy fees, brokerage, service charges, or anything similar, even if it’s as small as ₹100 — your applicable threshold drops from ₹40 lakh back down to ₹20 lakh. A small, incidental service income is enough to change which limit applies to your entire business.
Cases where the threshold doesn’t apply at all
In certain situations, the ₹20 lakh / ₹40 lakh limits don’t apply at all, and registration is required regardless of turnover:
- Interstate supply of goods
- Receiving services under Reverse Charge Mechanism (RCM) — for example, services from an Advocate
- Receiving Goods Transport Agency (GTA) services where RCM applies
Before deciding whether you need GST registration, don’t look at turnover alone. Check the nature of your income and the type of transactions you’re involved in. Getting this wrong is one of the most common reasons businesses end up facing unnecessary GST notices and penalties later.
Not sure which threshold applies to your business? We’ll review your income sources and transaction types before you register — not after.
Read the full case study: Should I Register for GST?
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