Threshold Limit for Goods (Intra-State Supply)
For firms engaged in the supply of goods, GST registration becomes mandatory when their aggregate turnover exceeds ₹40 lakhs in most states.

• This limit applies to intra-state supply (within the same state)
  
• For special category states like North Eastern states, Himachal Pradesh, and Uttarakhand, the limit is ₹20 lakhs
  
• Voluntary registration is allowed below the threshold
  
• Registration must be applied for within 30 days of crossing the limit
  
• PAN-based turnover across all states is considered for calculation
  

Threshold Limit for Services
For partnership firms providing services, the GST registration threshold is ₹20 lakhs annually.

• Applies to most states for intrastate service providers
  
• For special category states, the threshold is ₹10 lakhs
  
• Includes consultancy, digital, financial, legal, or educational services
  
• If service is supplied interstate, registration is required from day one (no threshold)
  
• Freelancers and professional firms must also comply
  

Compulsory Registration in Certain Cases
Some partnership firms must register for GST regardless of turnover due to the nature of their transactions.

• Inter-state supply of goods or services
  
• Selling through e-commerce platforms (like Amazon, Flipkart)
  
• Reverse charge mechanism (RCM) applicability
  
• Casual taxable persons or non-resident taxable persons
  
• Businesses dealing in exempt + taxable goods/services may still need registration
  

Benefits of Voluntary Registration
Even if turnover is below the limit, many firms opt for voluntary registration to avail of business advantages.

• Can claim Input Tax Credit (ITC) on purchases
  
• Builds credibility with clients, especially corporate buyers
  
• Helps in participating in government tenders or bulk supply contracts
  
• Allows issuing GST-compliant invoices
  
• Easier to expand the business across states or platforms
  

Penalties for Non-Registration
Failing to register for GST when required attracts penalties and legal consequences.

• Penalty of ₹10,000 or 100% of tax due, whichever is higher
  
• GST liability will be assessed with interest for the default period
  
• May lead to loss of ITC and ineligibility for tax benefits
  
• Registered buyers may stop dealing with non-GST suppliers
  

Business operations may face disruption due to non-compliance