GST Thresholds, Special Category States & Due Dates – 2026 (India)

A structured compliance reference for Business Owners, CFOs, Accountants and Tax Professionals.

This guide covers: - Registration thresholds - Special Category States - Section references - Return due dates - Compliance triggers

1. GST Registration – Section 22 & Section 24

Basic Threshold (Aggregate Turnover – PAN India Basis)

As per Section 22 of the CGST Act, 2017:

• Goods Suppliers – ₹40 Lakhs
• Service Providers – ₹20 Lakhs
• Special Category States – ₹10 Lakhs (Goods) / ₹20 Lakhs (Services)

Aggregate turnover includes taxable, exempt, export and interstate supplies (excluding GST).

Special Category States (as per Article 279A & GST Notifications)

The following are treated as Special Category States for threshold purposes:

• Arunachal Pradesh
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
• Uttarakhand

(Note: Assam, Himachal Pradesh, and Jammu & Kashmir were earlier covered but currently follow normal limits as per latest notifications.)

Compulsory Registration – Section 24

Registration is mandatory irrespective of turnover in case of:

• Interstate taxable supply (subject to notification relaxations)
• E-commerce operators
• Persons supplying through e-commerce operator (in notified cases)
• Casual taxable persons
• Non-resident taxable persons
• Reverse charge liability
• Input Service Distributor (ISD)
• TDS/TCS deductors

Consequences of delay:

• Tax payable from date of liability
• Interest @18% (Section 50)
• Penalty (Section 122)
• ITC denial to recipients

2. Composition Scheme – Section 10

Eligibility Limits

• Traders / Manufacturers – ₹1.5 Crore
• Special Category States – ₹75 Lakhs
• Service Providers (Section 10(2A)) – ₹50 Lakhs
• Restaurants (Non-Alcoholic) – ₹1.5 Crore

Tax Rates

• Manufacturers – 1%
• Traders – 1%
• Restaurants – 5%
• Service Providers (10(2A)) – 6%

Due Dates (Composition Dealers)

• CMP-08 (Quarterly Payment) – 18th of month following quarter
• GSTR-4 (Annual Return) – 30th April following financial year

Restrictions:

• No ITC
• No interstate outward supply
• Cannot collect tax separately

3. GST Returns – Sections 37, 39 & 44

GSTR-1 – Section 37 (Outward Supplies)

• Monthly Filers – 11th of next month
• QRMP (Quarterly) – 13th of month following quarter

GSTR-3B – Section 39 (Summary Return)

• Monthly Filers – 20th of next month
• QRMP Scheme:
• 22nd (Category X States)
• 24th (Category Y States)

GSTR-9 – Section 44 (Annual Return)

• Mandatory if turnover exceeds ₹2 Crore
• Due Date – 31st December following financial year

GSTR-9C – Section 44(2)

• Mandatory if turnover exceeds ₹5 Crore
• Due Date – 31st December following financial year

Late Fees:

• GSTR-1 / 3B – ₹50 per day (₹20 for Nil)
• GSTR-9 – ₹200 per day (Max 0.5% turnover)

Interest – 18% per annum (Section 50)

4. E-Invoicing – Rule 48(4)

Mandatory if aggregate turnover exceeds ₹5 Crore.

Applies to:

• B2B supplies
• Exports
• Supplies to SEZ

Process:

1. Generate invoice in ERP
2. Upload to Invoice Registration Portal (IRP)
3. IRN generated
4. QR Code embedded

Non-compliance may attract penalty under Section 122 (₹10,000 or tax amount, whichever higher).

5. E-Way Bill – Rule 138

Mandatory when consignment value exceeds ₹50,000.

Required for:

• Interstate movement
• Intrastate movement
• Job work
• Branch transfer

Validity:

• 1 day per 200 km (approx.)

Detention & Penalty – Section 129:

• 200% of tax payable (in taxable cases)

6. Input Tax Credit – Section 16 & 17(5)

Conditions (Section 16)

• Possession of tax invoice
• Goods/services received
• Tax paid by supplier
• Return filed

Time Limit – Section 16(4)

ITC must be claimed before:

• 30th November following financial year
  OR
• Date of annual return filing
  Whichever is earlier.

Blocked Credits – Section 17(5)

ITC not available on:

• Motor vehicles (with exceptions)
• Personal consumption
• Works contract (subject to conditions)
• Club memberships

7. Prosecution & Arrest – Sections 69 & 132

Monetary Thresholds:

• ₹2 Crore – Arrest provisions applicable
• ₹5 Crore – Prosecution (Non-bailable in certain offences)

Imprisonment may extend up to 5 years depending on severity.

8. Appeals – Section 107 & Section 112

First Appeal – Section 107

• 10% of disputed tax
• Maximum ₹25 Crore
• Time limit: 3 months from order date

Second Appeal – Section 112

• Additional 20%
• Maximum ₹50 Crore

Key Compliance Triggers Summary

• Registration – ₹40L / ₹20L / ₹10L
• Composition – ₹1.5 Cr / ₹75L / ₹50L
• QRMP – ₹5 Cr
• Annual Return – ₹2 Cr
• Audit (9C) – ₹5 Cr
• E-Invoicing – ₹5 Cr
• Arrest – ₹2 Cr
• Prosecution – ₹5 Cr

Strategic Note for 2026

GST compliance is a structured financial control mechanism.

Monthly monitoring of:

• Turnover
• ITC reconciliation (Books vs GSTR-2B)
• Return due dates
• E-invoice compliance
• E-way bill generation

is essential to avoid litigation, penalty exposure and working capital blockage.

Proactive compliance ensures stability, credibility and reduced departmental scrutiny.