Threshold limit of under GST

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This discussion clarifies the Goods and Services Tax (GST) threshold limits. It confirms that the threshold is calculated based on the aggregate turnover within a specific financial year, not cumulatively across multiple years. If the turnover exceeds the limit during a financial year, GST will be applicable on the entire turnover for that year from the date of exceeding the threshold.

KETAN MEHTA

KETAN MEHTA (Querist)

11 April 2025 Dear Sir/Madam,

I seek your kind guidance on the following GST-related queries:

Threshold Limit Calculation:
Is the GST threshold limit (₹20 lakhs for services and ₹40 lakhs for goods) determined based on the aggregate turnover within a particular financial year, or does it include the cumulative turnover of the entity across multiple financial years?

Taxable Turnover Upon Exceeding Threshold:
In the event that the aggregate turnover crosses the applicable threshold limit in a financial year, will GST be applicable on:
a) The entire turnover in that relevant financial year, or
b) Only the turnover in excess of the threshold limit?

I would appreciate your expert advice on the above queries for better compliance.

Thank you in advance.

Warm regards,

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

11 April 2025 1. Turnover in particular financial year (& not aggregate over multiple FYs.)
2. For first year of registration from the date of registration, for following year/s on entire turnover (means no threshold limit, now)

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

29 September 2025 Good luck..

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