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)
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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)
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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)
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29 September 2025 Good luck..

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