In a written reply to an unstarred question in the Lok Sabha, the Ministry of Finance clarified that GST registration thresholds are determined solely on the recommendations of the GST Council. At GST’s launch, the threshold was ₹20 lakh (₹10 lakh for special category States).

In a written reply to an unstarred question in the Lok Sabha, the Ministry of Finance clarified that GST registration thresholds are determined solely on the recommendations of the GST Council. At GST's launch, the threshold was ₹20 lakh (₹10 lakh for special category States). Based on the Council's 32nd meeting on 10 January 2019, the threshold for suppliers of goods was increased to ₹40 lakh (₹20 lakh for special category States), while the services threshold remained at ₹20 lakh (₹10 lakh for special category States). These changes were notified and became effective from 1 April 2019. The Government stated that, despite concerns about inflation and compliance costs, no further recommendation has been made by the GST Council to revise these limits. Consequently, there is no proposal under consideration to increase or rationalise the existing GST registration threshold for small traders, artisans, or micro-enterprises beyond the levels already in force.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 1484
TO BE ANSWERED ON MONDAY, FEBRUARY 9, 2026/MAGHA 20,1947 (SAKA)
"GST REGISTRATION THRESHOLD LIMIT"

1484. SHRI RAJEEV RAI:

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government is aware that despite inflation and rising compliance costs, the annual turnover of Rs. 8 lakh has remained well below the mandatory GST registration threshold during the past several years, if so, the details thereof;

(b) whether the Government has conducted any review/assessment to examine the need to revise the GST registration threshold in light of changing economic conditions in the country, if so, the details thereof;

(c) whether the Government proposes to increase/rationalise the existing threshold to provide relief to small traders, artisans and micro-enterprises in the country; and

(d) if so, the details thereof and if not, the reasons therefor?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

For (a) to (d)-

The threshold limit for registration under GST is decided based on the recommendations of the GST Council. The threshold limit for the supply of goods or services was Rs. 20 lakhs (10 lakhs in special category States) at the introduction of GST. Subsequently, the Government, based on the recommendations of GST Council given in its 32nd meeting held on 10.01.2019 has revised the threshold for registration and increased the same to Rs. 40 lakhs (Rs. 20 lakhs in special category States) for goods and continued the threshold of Rs. 20 lakhs for services (Rs. 10 lakhs in special category States). The same has been notified which is effective from April 1, 2019.

No recommendation has been made by the GST Council for further revision of the above-mentioned threshold.