What to do when your business crosses the GST threshold

Know the limit that applies to you

The threshold is Rs. 20 lakh for service providers and mixed businesses (Rs. 10 lakh in Manipur, Mizoram, Nagaland and Tripura). For businesses supplying exclusively goods it is Rs. 40 lakh in most states, with lower limits in some special category states, so check your state. Aggregate turnover includes taxable, exempt, export and inter-state supplies on the same PAN across India, and excludes GST itself and inward supplies taxed under reverse charge.

Watch turnover month by month. A garment shop that sold Rs. 3 lakh a month suddenly crosses the line during the festival season.

The 30-day window and effective date

Apply in REG-01 within 30 days of the date you became liable. If you do, the registration takes effect from the date you became liable. If you apply late, it takes effect from the date of grant, and the period in between remains a gap for which tax is still payable along with interest and possible penalty.

Between the liability date and the certificate, you cannot charge GST as a registered person, but your sales are still taxable. After the certificate is issued, you can issue revised tax invoices for those supplies within one month.

• Day 0: aggregate turnover crosses the limit.
• Within 30 days: file REG-01 and complete Aadhaar authentication.
• After approval: revised invoices for the gap period within one month of the certificate.

Credit on stock in hand

Under Section 18(1), a person who applies within 30 days can take credit on inputs held in stock, and inputs in semi-finished or finished goods, on the day before liability, using invoices not older than one year. Prepare a stock statement on that date with the matching purchase invoices.

Choosing a scheme

New registrants can opt for composition in the registration application itself if eligible: up to Rs. 1.5 crore (Rs. 75 lakh in special category states) for traders, manufacturers and restaurants, and Rs. 50 lakh for service providers under Section 10(2A). Composition rules out inter-state outward supplies, collecting tax from customers and claiming credit. Within 30 days of registration, or before the first GSTR-1, add bank details under Rule 10A.

• Waiting until the year end to apply.
• Charging GST on bills before getting the GSTIN.
• Forgetting the stock credit claim.

Getting help

A professional can fix the liability date, file the application within the window and prepare the revised invoices and stock credit statement.

Get it handled for you

Need GST registration done right the first time? Our chartered accountants prepare the documents, file the application and handle any query, so you do not have to visit the GST office. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.