Learn the latest GST Threshold Limit. Check GST registration limits, composition scheme, QRMP, e-invoice, GSTR-9, GSTR-9C, Rule 86B, GST TDS, LUT, and refund thresholds in one complete guide.
If you are starting a business or already running one, understanding the GST Threshold Limit is essential to avoid penalties and ensure timely compliance.
Whether you are a trader, manufacturer, service provider, exporter, freelancer, or MSME, different GST provisions become applicable once your turnover crosses specified limits.
This comprehensive guide explains every important GST Threshold Limit in India, including:
- GST Registration Threshold
- Composition Scheme Limit
- QRMP Scheme Eligibility
- E-Invoice Threshold
- E-Way Bill Limit
- GSTR-9 & GSTR-9C Applicability
- Rule 86B
- GST TDS
- LUT for Export
- GST Refund
If you are searching for GST Threshold Limit, this guide contains everything you need.
What is GST Threshold Limit?
A GST Threshold Limit is the prescribed turnover limit under the GST law after which a taxpayer becomes liable to register, comply, or follow a particular GST provision.
Different GST compliances have different turnover thresholds.
For example:
- GST Registration starts at one turnover limit.
- E-Invoicing starts at another.
- Annual Return has another limit.
- GST Composition Scheme has a different eligibility limit.
Knowing these limits helps businesses remain compliant and avoid unnecessary notices from the GST Department.
1. GST Registration Threshold Limit for Goods
Threshold Limit
₹40 Lakhs
Applicable To
Suppliers dealing in goods located in normal category States.
Meaning
If your aggregate turnover exceeds ₹40 lakhs in a financial year, GST registration generally becomes mandatory (subject to exceptions under the GST law).
Important: This limit is not available in Special Category States.
2. GST Registration Threshold Limit for Services
Threshold Limit
₹20 Lakhs
Applicable To
Service providers.
Examples include:
- Consultants
- Lawyers
- Chartered Accountants
- Architects
- Digital marketers
- Freelancers
- Software developers
Once turnover exceeds ₹20 lakhs, GST registration generally becomes mandatory unless exempt.
3. GST Threshold Limit for Special Category States
The GST registration threshold is lower in specified Special Category States.
Threshold
- ₹20 Lakhs
- ₹10 Lakhs
The applicable limit depends upon the particular State and the relevant GST notifications.
Businesses operating in these States should verify the applicable threshold before assuming that the ₹40 lakh limit applies.
4. GST Composition Scheme Threshold Limit (Goods)
Threshold Limit
₹1.50 Crore
Applicable To
Eligible:
- Traders
- Manufacturers
Businesses within this turnover limit may opt for the Composition Scheme, subject to eligibility conditions prescribed under GST.
Benefits
- Lower tax rate
- Simplified compliance
- Reduced return filing burden
5. Composition Scheme Threshold for Service Providers
Threshold Limit
₹50 Lakhs
Eligible service providers can opt for the special composition scheme if they satisfy the prescribed conditions.
This scheme significantly reduces compliance requirements for small service businesses.
6. QRMP Scheme Threshold Limit
Threshold Limit
Up to ₹5 Crore Aggregate Annual Turnover (AATO)
Applicable To
Registered persons having AATO up to ₹5 crore.
Benefit
Eligible taxpayers can file:
- GSTR-1 Quarterly
- GSTR-3B Quarterly
This reduces the compliance burden for small and medium businesses.
7. E-Invoice Threshold Limit
Threshold Limit
Above ₹5 Crore Aggregate Annual Turnover (AATO)
Applicable To
Registered persons crossing the prescribed turnover.
Requirement
Generation of Invoice Reference Number (IRN) is mandatory for:
- B2B Transactions
- Export Invoices
Failure to issue valid e-invoices can lead to significant GST consequences.
8. E-Way Bill Threshold Limit
Inter-State Movement
Threshold
Consignment Value above ₹50,000
Whenever goods move across States and the consignment value exceeds ₹50,000, an E-Way Bill is generally required.
Tamil Nadu (Intra-State)
Threshold
Above ₹1,00,000 (including GST)
For intra-state movement within Tamil Nadu, a higher threshold applies.
Businesses should always check State-specific rules because they may differ.
9. GSTR-9 Threshold Limit
Threshold
Above ₹2 Crore AATO
Applicable To
Registered taxpayers crossing this turnover.
Compliance
Annual Return (GSTR-9) becomes mandatory.
10. GSTR-9C Threshold Limit
Threshold
Above ₹5 Crore AATO
Compliance
Applicable taxpayers are required to furnish the Reconciliation Statement (GSTR-9C), subject to Government notifications.
11. Rule 86B Threshold
Threshold
Taxable Supplies exceeding ₹50 Lakhs in a month
Applicability
Specified taxpayers.
Effect
Rule 86B restricts the utilisation of Input Tax Credit (ITC) beyond the prescribed limit and requires payment of a portion of GST in cash, subject to exemptions.
12. GST TDS Threshold
Threshold
Contract Value above ₹2.50 Lakhs
Specified deductors are required to deduct GST TDS when the value of the contract exceeds ₹2.50 lakhs, subject to the GST provisions.
13. LUT for Export
Turnover Limit
No Turnover Limit
Exporters can furnish a Letter of Undertaking (LUT) and export goods or services without payment of IGST, subject to eligibility under GST law.
14. GST Refund Threshold
Minimum Limit
No Minimum Turnover Requirement
Eligible registered persons may claim GST refunds wherever permitted under the GST Act and Rules.
Examples include:
- Export refunds
- Inverted duty structure
- Excess tax payment
- Excess electronic cash ledger balance
GST Threshold Limit Summary Table (FY 2026–27)
| GST Compliance | Threshold Limit |
|---|---|
| GST Registration (Goods) | ₹40 Lakhs |
| GST Registration (Services) | ₹20 Lakhs |
| Special Category States | ₹20 Lakhs / ₹10 Lakhs |
| Composition Scheme (Goods) | ₹1.50 Crore |
| Composition Scheme (Services) | ₹50 Lakhs |
| QRMP Scheme | Up to ₹5 Crore AATO |
| E-Invoice | Above ₹5 Crore AATO |
| E-Way Bill (Inter-State) | ₹50,000 |
| E-Way Bill (Tamil Nadu) | ₹1,00,000 |
| GSTR-9 | Above ₹2 Crore AATO |
| GSTR-9C | Above ₹5 Crore AATO |
| Rule 86B | Monthly Taxable Supplies above ₹50 Lakhs |
| GST TDS | Contract above ₹2.50 Lakhs |
| LUT for Export | No Turnover Limit |
| GST Refund | No Minimum Limit |
Why Understanding GST Threshold Limits is Important
Knowing the applicable GST threshold limits helps businesses:
- Avoid late registration penalties.
- Choose the right GST scheme.
- Comply with e-invoicing requirements.
- File correct GST returns.
- Avoid notices and litigation.
- Plan business expansion efficiently.
- Ensure seamless input tax credit compliance.
Whether you are a startup, MSME, exporter, trader, manufacturer, or service provider, staying updated with the latest GST threshold limits is crucial for smooth business operations.
Frequently Asked Questions (FAQs)
What is the GST registration threshold limit for goods?
Generally, suppliers of goods in normal category States are required to obtain GST registration when their aggregate turnover exceeds ₹40 lakhs, subject to the provisions of the GST law.
What is the GST registration threshold limit for service providers?
The threshold is ₹20 lakhs in most States.
What is the composition scheme turnover limit?
Eligible traders and manufacturers can opt for the Composition Scheme up to ₹1.50 crore, while eligible service providers have a limit of ₹50 lakhs.
What is the e-invoice turnover limit?
E-invoicing is applicable to registered persons having Aggregate Annual Turnover exceeding ₹5 crore, as per the applicable notifications.
When is GSTR-9 mandatory?
GSTR-9 is generally applicable where the Aggregate Annual Turnover exceeds ₹2 crore.
Is there any turnover limit for LUT?
No. There is no turnover limit for furnishing an LUT for eligible exporters.
Conclusion
The GST Threshold Limit is the foundation of GST compliance in India. From registration and composition scheme eligibility to e-invoicing, annual returns, Rule 86B, GST TDS, and export benefits, each threshold determines when a particular compliance obligation begins.
Businesses should regularly review their turnover during the financial year to ensure timely registration, accurate return filing, and compliance with evolving GST requirements. Staying informed about these limits not only helps avoid penalties but also enables better tax planning and smoother business operations.
The information in this article is general in nature and should not be relied upon as legal advice. If you require any further information, you may reach out at hello@lawfluencers.com.