GST Registration for Services

New GST Registration Threshold Limit for Services in 2022

Online Legal India LogoBy Online Legal India Published On 23 Mar 2022 Updated On 06 Jan 2023 Category GST

Under the GST system, sales of a Company or business owners with more than 40 lacs must register as regular taxable persons on GST  and Rs 10 lacs and are subject to the GST registration thresholds for services operating in the northeastern states. Registration of the GST is mandatory for almost all businesses. If a company conducts business  without registering with GST,it is considered a criminal offence under GST rules and applies severe penalties. There are no changes to the  service provider thresholds. The person providing the service must register if the total sales exceed Rs. 200,000 rupees (for regular category states) and  10 rupees (for special category states). The GST Council has doubled the GST tax exemption limit from Goods and Services Tax (GST) payments to 40 rupees. It used to be 200,000 rupees. Also, in the northeastern states, the tax exemption limit has been raised from the previous 10 rupees to 20 rupees. Companies with total sales of more than Rs 200,000 in a fiscal year must be registered under the Goods and Services Tax. This limit is set at 100,000 rupees for northeastern and hilly states designated as special categories of states. CBIC announced that from April 1, 2019, the standard amount of the company will be raised from 20 rupees to 40 rupees.

Online registration

The online GST registration process can take 2-6 hours. We can also help you complete your GST registration in just three easy steps. In light of the request from the MSME, the GST Council has raised the turnover threshold for hit GST registrations. This increase in the sales threshold  helps facilitate compliance with the GST scheme. The state has the option of choosing to continue with  existing  or  higher limits.This article describes the GST registration thresholds and the individuals or organisations to which they apply.

Registration Threshold Limit For Normal Taxpayer

This was a threshold of Rs 200,000 for  goods suppliers only under the original GST scheme declared by the government in July 2017. For better clarity, suppliers or distributors of goods with annual sales of up to  20 Rak? do not need to register under the GST system. Therefore, any supplier or distributor of goods with a sales threshold  of Rs. 200,000 or higher must register with GST. However, this annual allowance was raised from 20 rupees to 40 rupees at the 32nd GST Council meeting. In addition, this tax exemption  limit of up to Rs. 400,000 does not apply to the following taxpayers: You are required to register under Section 24 of the CGST Act. You are involved in the business of supplying products such as edible products related to foods.

Gst Registration Limit For Services

Regular Taxpayers:

According to the original GST structure declared by the government in July 2017, the service provider's sales limit was 200,000 rupees, excluding special categories of  states. However, this  GST tax exemption limit for service providers has not changed. That is, as explained at the 32nd GST Council, it is 200,000 rupees.

Special Category States:

Under the early GST system, service providers in the northeastern states had a tax exemption limit of Rs 100,000. However, this tax exemption limit has not changed and will be 100,000 rupees according to the 32nd GST Council session. The new GST registration threshold limits differ from company to company, some of the companies are mentioned below:

Dealers and Manufacturers:

Under the GST Act, all dealers and manufacturers with annual sales of up to Rs 100 million in the previous fiscal year are eligible to register with GST as constituent dealers. These retailers and manufacturers are subject to a GST tax rate of 1%. However,  as announced at the 32nd GST Council Meeting the GST registration limits for distributors and manufacturers in the Configure Distributor category have been raised. As a result, manufacturers and distributors with annual sales of up to  1.5 crores in the previous fiscal year can be registered with GST as constituent distributors. However, the 1% GST tax rate applicable to these manufacturers and distributors has not changed.

Restaurant Service Only:

Based on the GST method. Service provider, d. H. GST can only be registered for restaurant services  with total sales of up to  1 rupee in the previous fiscal year. The percentage of hits and misses for goods and services that apply to this type of service provider is 5%.

However, as announced at the 32nd GST Council, the GST registration limits for restaurant service providers registered as composition traders have also been raised. Therefore, restaurant service providers with annual total sales of up to 1.5 chlores in the previous fiscal year can  register as a composition trader under  the GST. Also, the 5% GST tax rate applicable to such restaurant service providers has not changed.

Other Service Providers:

Service providers other than restaurant-related services could not choose a composition dealer under the original GST structure. However, as of the 32nd GST Council meeting, a new configuration scheme will be available for mixed providers or service providers with a tax rate of 6% (3% CGST + 3% SGST). In addition, these service providers must maintain an annual sales threshold of up to Rs. 500,000 in the previous fiscal year. Registration obligation based on GST. The taxpayer category that must be registered with GST. Listed below are these categories under Section 24 of the 2017 CGST Act. Therefore:

  • Individuals or businesses, including interstate taxables 

  • Individuals subject to temporary taxation 

  • Individuals who have to pay taxes on reverse billing 

  • Taxable persons under Section 9 subsection (5)

  • Non-resident taxable person 

  • Those who need to pay TDS (tax)


GST was introduced in India to abolish some other indirect taxes and build a unified tax system. GST also helps simplify collection and improve process efficiency. GST registration is required for companies with sales exceeding Rupees. 400,000 rupees for selling goods (20 rupees for northeastern-all hilly states for selling goods). There are no changes to the  service provider thresholds. The person providing the service must register if the total sales exceed Rs.20 lakh (for states in the regular category) and Rs.10 lakh (for states in the special category).

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Anjali Malhotra


Anjali Malhotra


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