GST Threshold Limits

Financial Year 2026–27 / Assessment Year 2026–27

A consolidated reference of registration, composition, HSN, return-filing, e-invoicing and e-way bill thresholds under Indian GST law

1. GST Registration Thresholds

Aggregate turnover limits above which registration under Section 22 of the CGST Act becomes mandatory

1.1  Special Category States

The following states are notified as special category states and are eligible for the lower threshold limits:

•      Arunachal Pradesh

•      Manipur

•      Meghalaya

•      Mizoram

•      Nagaland

•      Sikkim

•      Tripura

•      Uttarakhand

1.2  Conditions attached to the ₹40 Lakh goods threshold

The enhanced ₹40 lakh limit for goods suppliers is not automatically available to every business. It applies only where:

•      The state/UT has opted to adopt the higher threshold (a few states continue with ₹20 lakhs even for goods).

•      The supplier is not engaged in notified exclusions — e.g. ice cream and edible ice, pan masala, and tobacco/tobacco substitute manufacturers, which remain compulsorily registrable at ₹20 lakhs.

•      The supplier is not otherwise compulsorily required to register under Section 24 (see below), irrespective of turnover.

1.3  Compulsory registration irrespective of turnover (Section 24)

The following categories must register regardless of turnover, even if below the threshold limits above:

•      Persons making any inter-State taxable supply (with limited exceptions for small service providers and notified handicraft suppliers)

•      Casual taxable persons and non-resident taxable persons

•      Persons required to pay tax under reverse charge

•      E-commerce operators required to collect tax at source (TCS)

•      Suppliers making supplies through an e-commerce operator (subject to specified relaxations for intra-State supplies below the threshold)

•      Input Service Distributors (ISDs)

•      Persons required to deduct tax at source (TDS) under Section 51

•      Agents supplying on behalf of another registered person

•      Online Information and Database Access or Retrieval (OIDAR) service providers supplying from outside India to unregistered persons in India

•      Every person supplying online money gaming from outside India to a person in India

2. Composition Scheme Thresholds

Turnover limits for opting into the composition levy under Section 10 of the CGST Act

2.1  Key features of the composition levy

•      Tax is paid at a fixed, concessional rate (typically 1% for traders/manufacturers, 5% for restaurant services, and 6% for the services composition scheme u/s 10(2A)) on turnover, instead of the standard rate structure.

•      Composition taxpayers cannot collect tax from customers or claim Input Tax Credit (ITC) on inward supplies.

•      Quarterly statement-cum-payment in Form CMP-08 and an annual return in Form GSTR-4 are required, in place of the standard monthly/quarterly return cycle.

•      Not available to manufacturers of notified goods such as ice cream, pan masala and tobacco products, to persons making inter-State outward supplies, or to e-commerce suppliers required to collect TCS (subject to specified exceptions).

2.2  States with the ₹75 lakh composition limit

North-Eastern states and Uttarakhand (i.e., the special category states listed in Section 1.1) are eligible for composition up to ₹75 lakhs for goods, against ₹1.5 crore for normal category states.

3. HSN Code Reporting Requirements

Digit-level HSN disclosure on tax invoices and in GSTR-1, based on Annual Aggregate Turnover (AATO) in the preceding financial year

•      AATO is computed based on the taxpayer's turnover in the immediately preceding financial year across all GSTINs on the same PAN.

•      B2B and B2C supplies are reported separately in Table 12 of GSTR-1, and HSN summary values must reconcile with the corresponding B2B/B2C values disclosed elsewhere in the return.

•      Manual entry of HSN descriptions has been phased out on the portal; HSN codes must generally be selected from the auto-populated master, with quantity and value validations enabled.

4. Annual Return Filing Thresholds

Applicability of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) based on aggregate turnover for the financial year

•      GSTR-9 must be filed separately for each GSTIN; turnover is reckoned at the PAN level for determining applicability, then filed GSTIN-wise.

•      GSTR-9C is a self-certified reconciliation between the audited annual financial statements and the figures declared in GSTR-9 — the requirement for a separate CA/CMA certification was earlier removed, and it is now filed as a self-certification by the taxpayer.

•      Composition taxpayers file GSTR-4 annually instead of GSTR-9, and are not subject to the GSTR-9/9C thresholds above.

5. E-Invoicing Thresholds

Applicability of mandatory e-invoice generation (IRN) for B2B, export and certain B2G supplies

5.1  The "once crossed, always covered" rule

Once a taxpayer's AATO has crossed the applicable threshold in any financial year from 2017–18 onwards, the e-invoicing mandate continues to apply in all subsequent years — even if turnover subsequently falls below ₹5 crore. There is no provision to exit the e-invoicing requirement once it has been triggered.

5.2  Scope

•      Applies to B2B supplies, supplies to government departments/agencies (B2G) in specified cases, exports, and deemed exports.

•      B2C supplies remain outside the IRN mandate, though dynamic QR code requirements apply separately for large B2C taxpayers.

•      Certain categories remain exempt from e-invoicing regardless of turnover — including SEZ units (as distinct from SEZ developers), insurers, banking companies and financial institutions, GTAs, passenger transport services, and multiplex cinema admissions.

6. E-Way Bill Thresholds

Consignment value limits requiring generation of an e-way bill under Rule 138

•      Consignment value is based on the invoice/bill of supply/delivery challan value, inclusive of tax, and excludes the value of exempt supplies where the invoice contains both taxable and exempt goods.

•      E-way bill validity is distance-based — one day per 200 km (or part thereof) for regular cargo, with a longer per-day distance slab for over-dimensional cargo.

•      Because intra-State limits are state-specific, the applicable state notification should be checked before relying on a single uniform figure for intra-State movement.

Disclaimer

This document is a consolidated reference of GST threshold limits believed to be applicable for FY 2026–27 / AY 2026–27, compiled from publicly available guidance current as of July 2026. GST thresholds, exemption notifications (particularly for GSTR-9 applicability) and e-invoicing/e-way bill rules are subject to periodic amendment by the GST Council and CBIC. This summary is intended for general reference only and should not be relied upon as a substitute for professional advice or verification against the latest CBIC notifications, circulars and press releases before making compliance decisions.