Is the GST registration limit 20 lakhs or 40 lakhs?

What is the threshold for registering for GST?

Check if your business needs to register for GST

You must register for GST if: your business has a GST turnover of $75,000 or more. your non-profit organisation has a GST turnover of $150,000 or more.

How to know threshold limit?

Annual and Monthly Threshold Limits Explained

1. Salary (Section 192): TDS applies if total income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60).
2. Interest on Deposits (Section 194A): Threshold is ₹40,000 per financial year (₹50,000 for senior citizens).

What is the maximum GST in India?

The GST rates in India have been simplified to three main slabs: 5%, 18%, and 40%. The 5% rate applies to essentials and common household goods, the 18% rate is the new standard for most consumer products and services, and the 40% rate is for luxury and "sin" goods.

What is the maximum amount for GST?

For example, the information from your 2024 tax return determines the GST/HST credit amount you get for the payment period from July 2025 to June 2026. You could get up to: $533 if you are a single individual. $698 if you are married or have a common-law partner.

What is the threshold limit for GST registration under composition scheme?

The GST limit for composition schemes in India is Rs. 1.5 crore turnover per annum. Composition schemes are voluntary schemes available for small businesses with annual turnovers up to Rs. 1.5 crore who can opt for fixed tax rates instead of regular GST rates.

Is GST applicable on sale above 50 lakhs?

✔ If monthly taxable turnover > ₹50 lakh (excluding exempt and zero-rated supplies), ✔ Minimum 1% of GST liability must be paid in cash, ✔ The remaining 99% may be paid through ITC. Applicable to registered persons under GST whose monthly taxable supply exceeds ₹50 lakh.

What is the threshold limit for GST 2025?

GST Registration Threshold Limits (As of 2025)

₹40 lakhs: This is the threshold for GST registration in most Indian states. ₹20 lakhs: For special category states like Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Sikkim, Tripura, Nagaland, and Uttarakhand.

How is GST threshold calculated?

The GST threshold is the level of income at which a business is required to register for and start charging GST. At this point in time, that threshold is $60k – as soon as you expect to make $60k in any 12-month period, you're required to be GST registered.

How to avoid GST registration?

Can Businesses Sell on E-commerce Sites Without GST Registration?

1. Your total turnover is below the threshold all across India. The threshold limits vary by state, not exceeding ₹40 lakhs annually.
2. You are not involved in the production of taxable interstate supplies.

What is rule 40 of GST?

Rule 40 – Manner of claiming credit in special circumstances

Provided that any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

What is the GST registration limit for freelancers?

Under GST law, freelancers in India must register for GST if their turnover exceeds Rs. 20 lakh (Rs. 10 lakh for special category states). Freelancers offering services to overseas clients must also comply with GST on exporting services, even if they do not cross the turnover limit.

What is the limit of GST registration?

What is the threshold limit for GST registration? Generally, the threshold limit for GST registration is ₹40 lakhs for goods business, and in the case of services, the limit is ₹20 lakhs. For special category states, the limit reduces to ₹20 lakhs and ₹10 lakhs, respectively.

From when is 40% GST applicable?

India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.

How many GST can a person have in India?

With a single PAN, you can register for two GST registrations in one state or union territory. GST, or Goods and Services Tax, is one of India's most revolutionizing tax regimes, with the motto "One Nation, One Tax." GST, which is an indirect tax, is linked to the PAN, which serves as the basis for direct taxes.

What is the 40 tax slab in India?

The key categories of goods and services included under the special 40% GST slab are, Tobacco and related intoxicants as sin goods (e.g., cigarettes, bidis, pan masala, caffeinated drinks) Drinks with high sugar content and caffeinated. Super-luxury and luxury 4-wheelers, 2-wheelers and personal use yacht, aircraft, ...

What is the 5 crore limit for GST?

Notification No. 10/2023, issued on May 10, 2023, amends the earlier Notification No. 13/2020–Central Tax from March 21, 2020. The GST e-invoice requirement now applies to businesses with a turnover exceeding ₹5 crore in any financial year since 2017-18, starting from August 1, 2023.

What are the 4 types of thresholds?

It outlines four types of thresholds: absolute, recognition, differential, and terminal, each with specific implications and applications in fields like marketing, design, healthcare, and technology. Understanding these concepts is essential for enhancing perception and optimizing experiences in various domains.

What is the income limit for GST?

GST/HST credit eligibility requirements

To qualify for the GST/HST credit, your adjusted net family income must be below a certain threshold, which for the 2023 tax year ranges from $54,704 to $72,244, depending on your marital status and how many children you have.