GST Registration Threshold Limit 2025

Threshold Limits for GST Registration

Goods:

• Normal category states: Annual turnover is to exceed 40lakh

• Special category states: Annual turnover of more than 20 Lakh rupees, but some states such as Assam, Jammu & Kashmir and Ladakh have chosen to default to the higher amount of 40 Lakh rupees.

Services:

• Normal category states: Turnover per annum > 20 lakh

• Special category states: Turnover of > 10 lakh per annum.

States that come under special category are: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura, Uttarakhand. Differentiated thresholds exist as indicated.

State Category Reference Table

• Assam, J&K, and Ladakh chose normal-state limits for goods .

Mandatory Registration Scenarios (Regardless of Turnover)

One is required to be registered as GST even where the threshold is met:

• Goods or service suppliers interstate

• Non-professional taxable persons (e.g. trade fair sellers)

• Non-resident taxpayers

• Suppliers of the Reverse charge mechanism

• Online companies or merchants via websites such as Amazon, Flipkart

• Input Service Distributors (ISDs) (required by multI-GSTIN group entities as on req 1, 2025)

• Online gaming providers, OIDAR service providers, TDS/TCS deductors.

Key Updates Effective April 2025

• Binding ISD registration of entities having multiple GSTINs in a single PAN in effect as effect April 1, 2025.

• Portal logins, e-invoices and e-way bills to have multi-factor authentication (MFA) in force April 1, 2025.

• E-invoice generation window reduced to 30 days now (validity).

Composition Scheme & Voluntary Registration

• Can be used up to 1.5 crores in normal states; 75 lakhs in special states.

• Below thresholds, voluntary registration enables businesses to claim Input Tax Credit (ITC), and the voluntary registration has more credibility.

Freelancers & Export of Services

• No GST registration is usually needed in case of intra-state service turnover less than 20 lakh (10 lakh in special states).

• Inter- state or export services however tend to result in registration under Section 24 (i).

• Under Notification 10/2017, Section 23, one can now get relief of up to 20 Lakhs even in the case of inter-state services-but the course is risky.

• Although not a mandate, most freelancers are registering to enjoy the benefit of ITC, LUT on zero-rated exports, and reporting their compliance.

Key Takeaways

• Goods: 40 lakhplus in the majority of the states; 20 lakhplus in the special states.

• Services: 20 lakhs generally; 10 lakhs, in special states.

• Inter state, casual, non-resident, e-commerce, RCM, ISD etc. GSTIN is compulsory regardless of turnover.

• April 2025 compliance updates: ISD, MFA, tighter e-invoicing.

• Filing under the composition scheme is easy, and it has a limit of 1.5 cr.

• Freelancers can be helped through GST and voluntary registration for export services.

Disclaimer

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