Registration under gst for interstate purchases

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Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2016 I am going to start a trading business in Kerala. My purchase of goods is from Karnataka(interstate purchase). Can i avail 20 lakh threshold limit under GST for registration.

VIPIN GUPTA

VIPIN GUPTA (Expert)
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17 December 2016 As Per Schedule 5 point 6 you have to be registered if you have interstate supply irrespective of the turnover

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2016 whether the definition of interstate supply includes interstate purchases in GST

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Great question! Here’s the clarity on GST registration for interstate purchases and the turnover threshold:

1. Interstate Supply vs. Interstate Purchase
Interstate supply means supplying goods or services from one state to another. It’s about the movement from your business to customers in another state.
Interstate purchase means buying goods from another state (like buying from Karnataka if your business is in Kerala).
2. Is GST Registration Mandatory for Interstate Purchases?
If you are only purchasing goods from another state but selling them within your own state (Kerala), you do NOT need mandatory GST registration if your aggregate turnover is below Rs. 20 lakh (the threshold for Kerala).
The mandatory GST registration irrespective of turnover applies only to businesses making interstate supplies, i.e., selling goods or services to other states.
3. Threshold Limit Applicability
If you are not making interstate supplies (selling outside Kerala), you can avail the Rs. 20 lakh threshold limit.
If you start selling to other states (interstate supply), you must register regardless of turnover.
4. Summary:
Scenario GST Registration Requirement
Interstate purchase only No mandatory registration if turnover < 20L
Interstate supply (selling) Mandatory registration, no turnover limit
5. Additional Points
If you register voluntarily, you can claim input tax credit on interstate purchases.
Interstate purchase without GST registration may not be a problem but you won’t be able to claim input tax credit.

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