GST Slab

GST Tax Slabs in India
GST Rate Category
0% GST Essential items, basic food items
5% GST Packaged food, household essentials
12% GST Electronics, processed food items
18% GST Most services, consumer goods
28% GST Luxury items & high-end products

In India, the Goods and Services Tax (GST) registration threshold limits depend on the nature of supply (goods or services) and the business’s location, while different types of registration exist to cater to various business models.

GST Registration Threshold Limits

Registration is mandatory once a business’s aggregate annual turnover crosses the specified threshold. “Aggregate turnover” includes all taxable and exempt supplies, exports, and inter-state supplies under the same PAN across India.

Type of Supply Normal Category States Special Category States
Exclusively Supply of Goods ₹40 lakhs ₹20 lakhs
Supply of Services (or both goods/services) ₹20 lakhs ₹10 lakhs

Special Category States for threshold purposes typically include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand. Some states that are classified as special category, such as Assam, Jammu & Kashmir, and Himachal Pradesh, opted for the higher normal state limits for goods (₹40 lakhs).

Note: Certain businesses are required to register for GST regardless of their turnover, such as inter-state suppliers of goods, e-commerce operators and sellers on e-commerce platforms, and those liable to pay tax under the reverse charge mechanism.

Types of GST Registration

Regular Taxpayer: This is the standard registration for businesses whose turnover exceeds the threshold or those who register voluntarily. They can collect GST from customers and are eligible to claim Input Tax Credit (ITC) on their purchases. They are required to file monthly or quarterly returns.

Composition Scheme Dealer: This simplified scheme is for small taxpayers with a turnover up to ₹1.5 crore (₹75 lakhs in special category states) for goods suppliers/traders, or up to ₹50 lakhs for service providers.

  • Benefits: Lower, fixed tax rates (e.g., 1% for traders, 5% for restaurants, 6% for service providers) and fewer compliance requirements (quarterly returns).
  • Limitations: Cannot claim ITC and cannot make inter-state supplies.

Casual Taxable Person (CTP): For businesses that occasionally supply goods or services in a state where they do not have a fixed place of business (e.g., seasonal businesses, trade fairs). Registration is mandatory and valid for a maximum of 90 days (extendable).

Non-Resident Taxable Person (NRTP): For foreign individuals or businesses supplying goods/services in India without a fixed place of business. Similar to CTP, registration is mandatory and valid for 90 days, requiring an advance deposit of estimated tax liability.

Input Service Distributor (ISD): For offices of a company that receive tax invoices for services used by multiple branches and wish to distribute the input tax credit to those branches efficiently.

E-commerce Operator (ECO) / TCS Registration: Mandatory for platforms (like Amazon or Flipkart) that facilitate online sales and for sellers on such platforms (with exceptions for small local sellers of goods).