GST Thresholds for FY 2026–27: Registration, Composition, QRMP, E-Invoice and E-Way Bill Without the Poster Errors
There is no single GST threshold. Registration, composition, return frequency, e-invoicing, e-way bills and cash-payment restrictions use different bases, periods and exceptions.
Finin2min Summary
- Registration thresholds depend on goods versus services, state choices and compulsory-registration provisions.
- The ₹40 lakh goods threshold is not universal across every state, person or supply.
- Composition for eligible goods businesses and the separate service composition route use different limits and conditions.
- QRMP is generally available up to ₹5 crore aggregate annual turnover, subject to portal and compliance conditions.
- E-invoicing generally applies from ₹5 crore AATO based on any relevant earlier year, with specified entity and document exclusions.
- E-way bill and Rule 86B use transaction/monthly tests, not the same annual turnover test.
One-page GST posters are useful only when they preserve legal distinctions. The most common errors are presenting ₹40 lakh registration as universal, treating e-way-bill value as turnover, omitting compulsory registration and confusing an annual aggregate turnover test with a single-month taxable-supply test.
The table below is an operational map, not a substitute for notification-by-notification review.
Registration: why ₹40 lakh cannot be printed alone
For suppliers of goods, a higher threshold of up to ₹40 lakh applies in states that adopted it and only where the person and supplies fit the conditions. The general services threshold is commonly ₹20 lakh, with lower limits in specified special-category states.
Compulsory-registration provisions can override the basic threshold—for example, for specified categories of persons or supplies. Interstate, e-commerce and reverse-charge rules have detailed exceptions and amendments, so the business model must be tested rather than using a state-free number.
Composition and QRMP are not the same relief
The composition scheme for eligible traders and manufacturers generally uses a turnover limit of ₹1.5 crore, with a lower limit in specified states and important exclusions. A separate concessional scheme exists for eligible service providers up to ₹50 lakh, subject to conditions.
QRMP changes return frequency, not the tax regime. Eligible registered persons with aggregate annual turnover up to ₹5 crore may file GSTR-1 and GSTR-3B quarterly while making monthly tax payments under the scheme's mechanics.
E-invoicing: historical AATO and covered documents
The e-invoice mandate generally applies when aggregate annual turnover is ₹5 crore or more in any financial year from 2017–18 onward, subject to notified exclusions. It primarily covers specified B2B, export and related debit/credit documents that must be reported to an Invoice Registration Portal for an IRN and QR code.
From 1 April 2025, taxpayers with AATO of ₹10 crore or more cannot report covered documents older than 30 days on the IRP. The 30-day rule is an operational reporting limit, not a new ₹10 crore applicability threshold.
E-way bill: value of movement, not annual turnover
An e-way bill is generally linked to movement of goods where consignment value exceeds ₹50,000, subject to rules, exemptions, state-specific intrastate limits and special circumstances. It can apply even to an unregistered person's movement and can be required regardless of the supplier's annual turnover.
The document, vehicle and distance details must align with the invoice and actual movement. E-invoice data can assist generation, but an IRN does not eliminate the need to test e-way-bill applicability.
Annual-return and Rule 86B triggers need separate reading
GSTR-9 and reconciliation-statement requirements depend on notified turnover thresholds and exemptions for the relevant financial year; they should be confirmed annually rather than hard-coded forever.
Rule 86B is a monthly restriction. It generally becomes relevant where taxable supplies other than exempt and zero-rated supplies exceed ₹50 lakh in a month, and it limits use of the electronic credit ledger to 99% of output tax liability unless an exception applies. That is not a ₹50 lakh annual turnover threshold.
Worked Example
A Maharashtra goods trader has ₹32 lakh aggregate turnover and makes only intrastate taxable supplies. The higher goods-registration threshold may be relevant if all conditions are satisfied. A consultant with the same turnover does not use the ₹40 lakh goods threshold; the services threshold and place-of-supply facts must be tested.
A manufacturer with ₹6 crore AATO in FY 2022–23 but only ₹3 crore in FY 2026–27 can still remain within e-invoice applicability because the test looks back to any relevant year from 2017–18. A separate consignment worth ₹62,000 may require an e-way bill even though the current annual turnover is low.
Practical Checklist
- Identify goods, services or mixed supplies and the state of registration.
- Test compulsory-registration provisions before applying the basic threshold.
- Use aggregate turnover across PAN and registrations where the law requires it.
- Check historical AATO for e-invoice, not only current-year turnover.
- Apply e-way-bill rules to each movement and state-specific variation.
- Refresh annual-return and notification-based thresholds every year.
Article-Specific Q&A
Is GST registration compulsory only after ₹40 lakh turnover?
No. ₹40 lakh is a conditional higher threshold for eligible suppliers of goods in adopting states. Services, special-category states and compulsory-registration situations follow different rules.
Can a service provider opt for the normal composition scheme up to ₹1.5 crore?
The regular composition scheme primarily covers eligible goods businesses and limited service components. A separate scheme for eligible service providers generally uses a ₹50 lakh limit and its own conditions.
Does QRMP mean tax is paid quarterly?
Returns are quarterly, but tax is generally paid monthly under the scheme's prescribed options. QRMP does not remove monthly cash-flow discipline.
If current turnover falls below ₹5 crore, can e-invoicing stop?
Not necessarily. Applicability generally considers whether the ₹5 crore threshold was crossed in any relevant financial year from 2017–18 onward, subject to exclusions.
Is an e-way bill needed only by GST-registered businesses?
No. Rules can place responsibility on registered persons, transporters or others depending on the movement. Registration threshold and consignment-value trigger are different tests.
Is GSTR-9 always mandatory above ₹2 crore?
Annual exemptions and thresholds are notification-specific for each financial year. Confirm the relevant year's notification instead of relying on an old poster.
Does Rule 86B require cash equal to 1% of turnover?
No. Where applicable, it restricts electronic-credit-ledger use to 99% of output tax liability, effectively requiring at least 1% of that output tax liability in cash, subject to exceptions.
Sources and Verification Trail
- CBIC GST: Official CGST Act, rules, notifications, circulars and registration guidance.
- GST Council: Official Council material and GST publications.
- NIC e-Invoice System: Official notifications and e-invoice operational guidance.
- GST Portal: Official registration, return and taxpayer services portal.
Editorial Note
This article is written for education and general awareness. Tax, regulatory and employment outcomes depend on facts, dates, notifications and documentation. Verify the current law and obtain professional advice before acting.
Keywords: GST threshold 2026-27 · GST registration · QRMP · e-invoice threshold