When does GST registration become mandatory?
For a goods trader, GST registration is required once annual turnover crosses Rs 40 lakh — Rs 20 lakh in special-category states.
GST registration is required at Rs 40 lakh annual turnover for goods. In special-category states the line is lower: Rs 20 lakh. Below the applicable line, registration is not compulsory for a goods trader; above it, it is mandatory.
Once registered, an eligible trader may use the composition scheme, which runs at 1% of turnover up to Rs 1.5 crore a year — a flat rate on turnover.
The GST line does not move with the FSSAI slabs. At Rs 30 lakh turnover a provisions agency needs a State Licence from FSSAI but is still below the GST goods threshold; at Rs 50 lakh it needs both. The same turnover figure feeds both tests, so count it once and check it against each.