GST Registration Limit in Telangana: ₹20 Lakh for Goods, Not ₹40 Lakh (2026)
In Telangana, a business must register for GST once its turnover crosses ₹20 lakh a year, even if it sells only goods. Most states raised the goods limit to ₹40 lakh in 2019, but Telangana is one of ten states and union territories that did not, so a trader in Hyderabad registers at half the turnover of a trader in Bengaluru, Delhi or Mumbai. The ₹20 lakh limit for services is the same everywhere. This guide explains how the limit is counted, the cases where registration is needed whatever the turnover, and what happens if you register late.
The limits side by side
| Business | Telangana | Most other states (Karnataka, Maharashtra, Delhi, Tamil Nadu) |
|---|---|---|
| Only goods | ₹20 lakh | ₹40 lakh |
| Only services | ₹20 lakh | ₹20 lakh |
| Both goods and services | ₹20 lakh | ₹20 lakh |
Why Telangana is different
The ₹40 lakh limit for goods comes from Notification 10/2019-Central Tax of 7 March 2019, in force from 1 April 2019. It applies to every state except those that chose to stay at the old limit: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. Telangana has kept the ₹20 lakh limit since then, and industry bodies in Hyderabad have asked for the higher limit without a change so far.
How the ₹20 lakh is counted
- Aggregate turnover: all taxable, exempt and export supplies, and inter-state supplies, made under the same PAN across India. GST itself is not included.
- Exempt sales count. A Hyderabad grocer selling fresh vegetables (exempt) and packaged goods (taxable) counts both towards ₹20 lakh.
- Branches in other states count. If the same PAN has a branch in Karnataka or any other state, that turnover is added to the Hyderabad turnover.
- Financial year basis: the limit is checked on the turnover in the financial year. Register within 30 days of crossing it.
When you must register whatever the turnover
- Inter-state sale of goods: selling goods to a buyer in Andhra Pradesh or any other state needs registration from the first sale. Inter-state supply of services is exempt from this rule up to the ₹20 lakh limit.
- Online sellers of goods: sellers on Amazon, Flipkart or Meesho normally need registration. Since 1 October 2023, a small supplier selling goods only within Telangana through a platform can enrol without registering, subject to conditions; inter-state online sales still need registration.
- Casual taxable persons, such as exhibitors at a Hyderabad trade fair coming from another state.
- Reverse charge recipients and input service distributors.
- Persons required to deduct TDS or collect TCS under GST, including e-commerce operators.
What happens if you register late
- Tax from the date you crossed the limit, paid from your own pocket if you did not charge GST to customers.
- Interest at 18% a year on the unpaid tax under section 50 of the CGST Act.
- Penalty under section 122 of 10% of the tax due or ₹10,000, whichever is higher.
- No input tax credit on purchases before registration, except for stock held on the day you became liable, if you apply within 30 days.
Should a small Hyderabad business register early?
Voluntary registration makes sense where your customers are businesses that want to claim input tax credit, where you sell online or to other states, or where you buy a lot of taxed inputs and can use the credit. It makes less sense for a small retailer selling to consumers, because registration brings monthly or quarterly returns. If you register, the composition scheme, which charges a flat rate on turnover with simpler returns, is worth considering for small traders and manufacturers.
Other Telangana registrations a new business needs
- Professional tax: employers register and enrol separately, and pay and file Form V by the 10th of each month.
- Trade licence from the municipal corporation where your premises are: GHMC, Cyberabad or Malkajgiri since the 2026 split.
- Shops and Establishments registration within 30 days of opening.
Our page on company registration in Hyderabad covers these in detail.
Frequently asked questions
What is the GST registration limit in Telangana for goods?
₹20 lakh a year. Telangana did not adopt the ₹40 lakh limit for goods that most states use.
Is the GST limit in Hyderabad ₹20 lakh or ₹40 lakh?
₹20 lakh, for goods as well as services, because Hyderabad is in Telangana.
Do exempt sales count towards the ₹20 lakh?
Yes. Aggregate turnover includes exempt supplies, so a business selling both exempt and taxable goods counts both.
Does selling to Andhra Pradesh need GST registration?
For goods, yes, from the first sale, because it is an inter-state supply. For services, not until you cross ₹20 lakh.
TAXAJ handles GST registration, returns and notices for traders and companies in Hyderabad. See our GST registration service.
Last updated 26 October 2026. Sources: CGST Act, 2017, sections 2(6), 22, 24, 25, 50 and 122; Notification 10/2019-Central Tax of 7 March 2019; Notification 10/2017-Integrated Tax on inter-state services; Notification 34/2023-Central Tax on small suppliers through e-commerce operators; Telangana Tax on Professions, Trades, Callings and Employments Act, 1987. General information only; check your own turnover and supplies with us before deciding.
