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The Finance Base
Composition Scheme

GST Registration Thresholds and Filing Rules for Small Businesses in India

India’s GST registration limit depends on turnover, state, and supply type. Learn how the ₹20 lakh, ₹10 lakh and conditional ₹40 lakh figures relate, plus filing options after registration.

By TheFinanceBase Team 5 min read
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There is no single GST registration threshold for every small business in India. The commonly cited general threshold is ₹20 lakh of PAN-wide aggregate turnover, with a lower ₹10 lakh threshold in specified cases. Eligible businesses exclusively supplying goods may qualify for a conditional exemption up to ₹40 lakh in jurisdictions that adopted it. Supply type, state, and exceptions can change the result. Once registered, a normal taxpayer can generally file monthly or opt for quarterly returns under QRMP; composition is a separate scheme with significant restrictions.

How to decide whether your business must register

Start with the business’s aggregate turnover, then check whether the nature or location of its supplies creates a registration requirement before it reaches the applicable threshold. A turnover figure alone does not settle every case.

  1. Calculate aggregate turnover across the PAN. Combine relevant supplies made across India by persons sharing the PAN, rather than checking each GSTIN or location in isolation.
  2. Identify the applicable threshold. Consider the state or union territory, whether the business supplies goods, services, or both, and whether a conditional exemption applies.
  3. Check for an earlier trigger or exemption. Inter-State taxable supplies may require registration below the usual threshold, subject to exceptions; businesses dealing exclusively in exempt supplies are generally not liable on turnover alone.
  4. Choose the filing route only after confirming registration and eligibility. QRMP changes the filing cadence for eligible normal taxpayers. Composition is a different scheme with restrictions.

CBIC’s FAQ pages contain legacy examples and wording. For a decision about a particular business, check the current applicable notification and GST Portal position for its state and supply type. CBIC GST FAQs

What counts as aggregate turnover

Aggregate turnover is calculated on an all-India basis for persons with the same PAN. It includes taxable supplies, exempt supplies, exports, and inter-State supplies, subject to statutory exclusions. GST and compensation cess are excluded. As a result, separate locations or GST registrations under one PAN do not each get a separate threshold. CBIC Sectoral FAQs

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Which threshold may apply?

Situation Figure described in official guidance Important qualification
General threshold commonly cited by CBIC ₹20 lakh Not a universal threshold: specified cases have a lower figure, and some eligible goods-only suppliers may qualify for a conditional higher exemption. CBIC FAQs
Specified special-category-state cases ₹10 lakh CBIC FAQs cite this lower threshold; confirm whether it applies to the business’s state and circumstances. CBIC FAQs
Eligible persons exclusively supplying goods Up to ₹40 lakh A conditional exemption applies only in jurisdictions that adopted it and is subject to exclusions and the relevant notification. It is not a nationwide threshold for service businesses or mixed suppliers. CBIC Union Territory notifications

These figures are registration thresholds or exemptions, not interchangeable versions of one national rule. State, supply mix, and applicable exclusions must be checked before relying on any one of them.

Cases where turnover alone may not decide liability

  • Inter-State taxable supply: It can trigger registration below the usual threshold, though exceptions apply. Check the rule for the specific supply rather than assuming every sale across a state border has the same result. CBIC FAQs
  • Exempt-only activity: A person dealing exclusively in exempt supplies is generally not required to register on the basis of turnover alone. CBIC FAQs
  • Voluntary registration: Registering voluntarily makes the person a normal taxable person, with the associated post-registration tax obligations. CBIC FAQs
  • Operations in multiple states: Turnover is calculated PAN-wide, while registration and supply consequences can depend on the state. Review the business’s full footprint rather than one location’s sales. CBIC FAQs

CBIC states that a person has 30 days from the date liability arises to complete registration formalities. Check the current law and applicable circumstances before treating that period as decisive for an individual case. CBIC FAQs

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Compare the filing routes after registration

Route Who may use it Return or statement cadence Tax payment Key consequences
Normal taxpayer, monthly Applicable normal and casual registered taxpayers GSTR-1 and GSTR-3B monthly As required for the tax period GSTR-1 reports outward supplies; normal-taxpayer obligations apply.
QRMP Eligible taxpayers with PAN-based aggregate annual turnover up to ₹5 crore in the current and preceding financial years, subject to conditions and portal eligibility GSTR-1 and GSTR-3B quarterly Monthly, through challans A cadence option for regular taxpayers; it does not remove monthly tax payments. Eligibility and elections operate at GSTIN level. GST Portal QRMP FAQ
Composition Eligible small taxpayers within the applicable scheme limit and conditions Quarterly CMP-08 payment statements and annual GSTR-4 Quarterly through CMP-08 Cannot collect GST separately or claim input tax credit; restrictions include inter-State supply. This is a separate scheme, not simply quarterly normal filing. GST Portal Welcome Kit

Normal filing: GSTR-1 and GSTR-3B

GSTR-1 is the statement of outward supplies. It covers applicable details including registered-customer invoices, relevant inter-State consumer invoices, credit and debit notes, exports, exempt and nil-rated supplies, and HSN/SAC summaries. The GST Portal says GSTR-1 must be filed even for a nil period: “Form GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period.” GSTR-3B is used to report tax liability. GST Portal GSTR-1 guidance

The portal’s ordinary GSTR-1 due date is the 11th of the following month for monthly filers, or the 13th of the month after quarter-end for quarterly filers. Government notifications may extend these dates, so check the live deadline for the relevant period. GST Portal GSTR-1 guidance

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QRMP: quarterly returns, monthly tax payments

QRMP stands for Quarterly Returns with Monthly Payment. The GST Portal describes eligibility for taxpayers with PAN-based aggregate annual turnover up to ₹5 crore in the current and preceding financial years, where applicable, subject to conditions such as filing the last due GSTR-3B. Both GSTR-1 and GSTR-3B are quarterly, while tax dues are paid monthly through a challan. Check the GSTIN’s current portal eligibility and election status. GST Portal QRMP FAQ

Composition: simpler reporting with material restrictions

The GST Portal Welcome Kit describes a general preceding-year limit of ₹1.5 crore for goods-only businesses, with lower limits in specified states, and ₹50 lakh for service or mixed-supply cases described in the kit. Composition taxpayers make quarterly payments through CMP-08 and file annual GSTR-4. They cannot issue a taxable invoice, collect GST from customers, claim input tax credit, or make inter-State supplies under the restrictions described in the kit. Limits, exclusions, and eligibility should be checked against current state-specific rules. GST Portal Welcome Kit

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What to check before acting

  • Use turnover across all relevant businesses sharing the PAN, not a single outlet or GSTIN in isolation.
  • Confirm the state or union territory, goods/services mix, and whether any conditional exemption or special threshold applies.
  • Check whether the supplies themselves create a registration requirement below the threshold, or whether all supplies are exempt.
  • If already registered, confirm whether monthly normal filing, QRMP, or composition is available and suitable; quarterly filing does not always mean quarterly tax payment.
  • Check the GST Portal and current notifications for the applicable due date and eligibility, since ordinary dates can be extended and official FAQs may include legacy material.

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