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GST Registration Limits: What Every Growing Business Should Know

Growth Across States Can Change Your GST Obligations

A Chennai manufacturer opening a branch in another State must reassess GST registration—even if the new branch has minimal sales. 

GST thresholds depend on the nature of supplies, location and aggregate PAN-based turnover.

 

₹40 Lakh Is Not a Universal Limit

 

Eligible businesses exclusively supplying goods may qualify for a ₹40 lakh registration threshold in Tamil Nadu and several other States. 

The general threshold is ₹20 lakh for services or mixed supplies in most States. 

Businesses supplying ice cream, pan masala, specified tobacco products or notified bricks are excluded from the enhanced ₹40 lakh limit. 

Even a small service supply can affect eligibility.

 

Special Category States Need Attention

 

For GST registration, 

Manipur, Mizoram, Nagaland and Tripura have a ₹10 lakh threshold under Section 22. 

Other States may have different limits for eligible goods suppliers. 

 

Turnover Is Calculated Across India

 

Aggregate turnover includes taxable and exempt supplies, exports and inter-State supplies under the same PAN across India, excluding GST and specified inward reverse-charge supplies. 

A Chennai consultancy with ₹12 lakh taxable services and ₹10 lakh exempt supplies may cross the ₹20 lakh threshold, although its taxable revenue alone does not.

 

What Business Owners Should Review

Check goods-versus-services classification, 

State-wise operations, excluded products, aggregate turnover and compulsory registration under Section 24. 

Voluntary registration also brings ongoing compliance obligations. 

Before expanding into another State, ask your finance team to document the applicable threshold and registration position.

 

CA Sailesh Bhandari

 

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