GST Threshold Raised to ₹40 Lakhs
Confirmed in Budget 2026! GST registration threshold ₹20 lakh → ₹40 lakh doubled हो गया है general category states के लिए। Special category states के लिए ₹10 → ₹20 lakh। Effective April 1, 2026। Small businesses, freelancers, और part-time workers को huge compliance relief मिलेगी!
📢 GST Registration Threshold Doubled
❌ Old Rules (Till March 31, 2026)
- • General states: ₹20 lakh turnover
- • Special states: ₹10 lakh turnover
- • Mandatory registration above limit
- • Monthly/quarterly return filing
✅ New Rules (From April 1, 2026)
- • General states: ₹40 lakh turnover
- • Special states: ₹20 lakh turnover
- • No GST registration if below limit
- • No compliance burden for small businesses
🎉 Who Benefits Most?
Freelancers
Writers, designers, developers earning ₹20-40L → No GST compliance needed!
Gig Workers
Cab drivers, delivery partners with side businesses → threshold doubled
Home Businesses
Homemade products, online sellers → ₹40L तक GST-free growth
🗺️ State-wise GST Threshold
🌇 General Category States
Annual turnover limit (goods)
Includes:
• Maharashtra, Gujarat, Karnataka, Tamil Nadu
• Delhi, UP, Rajasthan, MP, West Bengal
• Punjab, Haryana, Telangana, Andhra Pradesh
(27 states + 7 UTs)
🏔️ Special Category States
Annual turnover limit (goods)
Includes (11 states):
• North-East: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura
• Hilly States: Himachal Pradesh, Uttarakhand
• Islands: Jammu & Kashmir
⚠️ Services vs Goods:
Goods: ₹40L threshold (general) / ₹20L (special)
Services: ₹20L threshold (ALL states)—यह unchanged रहेगा
📊 Impact on Gig Workers & Small Businesses
✅ Benefits
- No GST compliance: Return filing, invoice rules, tax payments—सब से छुट्टी (if under ₹40L)
- Cost savings: CA fees (₹2-3K/month), GST software (₹1K/month)—yearly ₹36-48K saved
- Simplified pricing: No need to add 18% GST in quotations—competitive edge
- Focus on business: Time spent on compliance → business growth में invest करें
⚠️ Important Notes
- Voluntary registration: ₹40L से कम पर भी GST le sakte हैं (ITC claim के लिए)
- Inter-state supply: E-commerce sellers के लिए GST mandatory (even under ₹40L)
- Monitor turnover: ₹40L cross होते ही 30 days में register करना mandatory
🧩 Should You Take Voluntary GST Registration?
✅ Register GST if:
- You buy raw materials/services with GST (can claim ITC—Input Tax Credit)
- Your clients are GST-registered businesses (they prefer GST invoices)
- You plan to scale beyond ₹40L soon (better to start early)
- You sell on e-commerce platforms (Amazon, Flipkart require GST)
❌ Avoid GST if:
- You serve individual consumers (B2C business—no ITC benefit for them)
- You have minimal expenses with GST (no ITC to claim)
- Your turnover is stable under ₹40L (compliance burden not worth it)
Effective April 1, 2026 • Calculate your GST liability • Decide registration strategy