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GST

When GST registration becomes compulsory for a small trader

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If you sell only goods within one State and your yearly turnover is ₹15 lakh, you are below the limit and do not have to register. The limit is ₹40 lakh for goods-only suppliers in most States and ₹20 lakh for services, lower in some special category States.

Provisions

Sec 22(1), CGST Act 2017; Notification 10/2019-CT; Sec 24, CGST Act 2017

Analysis

Aggregate turnover counts all your taxable, exempt and export sales across India under one PAN, not just one shop. A kirana store selling ₹15 lakh of goods only within Delhi stays below ₹40 lakh, so registration is optional. But if even one sale goes to another State, or you sell through an online marketplace, Sec 24 can make registration compulsory from the first rupee. Check your State's limit, because a few States kept the ₹20 lakh goods limit.

Close

  1. Add up all sales under your PAN for the financial year, including exempt items.
  2. Check which limit your State uses for goods (₹40 lakh or ₹20 lakh).
  3. Check if any Sec 24 trigger applies, such as inter-State sales or e-commerce.
  4. Track monthly turnover so you know the date you cross the limit.
  5. If you cross it, apply in REG-01 within 30 days.

Turnover is counted across all branches under the same PAN, so splitting sales between two shops does not reset the limit.

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