GST Registration Triggers and Thresholds in India

Do you need to register for GST in India?

Whether you need to register for GST in India depends on three things: where your business is located, who your customers are, and how much revenue you earn in India.

For businesses based outside India (foreign/non-resident)

If you are a foreign company selling SaaS or digital services to unregistered consumers (B2C) in India, registration is mandatory from your very first sale. There is no revenue threshold to cross first. The moment you make a taxable supply to an unregistered Indian customer, GST registration is required.

For B2B sales to GST-registered Indian businesses, registration is not required. The Indian buyer handles the tax through the Reverse Charge Mechanism (RCM).

For businesses based inside India (domestic)

Domestic businesses must register for GST once their annual aggregate turnover exceeds the applicable threshold. Thresholds vary by state and by the type of supply.

For services (including SaaS):

• INR 20 lakh for most states (normal category states)

• INR 10 lakh for special category states, including several northeastern states

For goods:

• INR 40 lakh for most states

• INR 20 lakh for special category states

Aggregate turnover includes taxable supplies, exempt supplies, exports, and zero-rated supplies, all calculated across all registrations under the same PAN (tax identification number) in India.

When does the measurement period reset?

India's financial year runs from April 1 to March 31. The threshold is measured against the current financial year's aggregate turnover, and the clock resets on April 1 each year.

What triggers registration for domestic businesses?

Once aggregate turnover exceeds the applicable threshold in the current financial year, the business must apply for registration within 30 days. GST liability applies from the date the threshold was crossed, not from the date of application.

Special cases that require immediate registration

Some situations require registration regardless of turnover:

• Making interstate supplies of goods

• Selling through an ecommerce operator that is required to collect Tax Collected at Source (TCS)

• Being required to pay tax under the Reverse Charge Mechanism as a recipient

State-wise Threshold Reference

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