A Chennai business that only sells goods inside Tamil Nadu does not need GST registration until its annual turnover crosses ₹40 lakh. For service providers the limit is ₹20 lakh. Tamil Nadu is not among the states that kept the lower limit for goods, according to Notification 10/2019-Central Tax, which set the ₹40 lakh exemption from 1 April 2019.
Those two numbers settle the question for most home businesses and small shops. The rest of this guide covers the exceptions, the composition scheme, the faster registration route introduced in November 2025, and where to get help in Chennai.
Do you have to register?
- Goods only, within Tamil Nadu: exempt up to ₹40 lakh aggregate turnover in a financial year.
- Services, or goods and services together: exempt up to ₹20 lakh. The 32nd GST Council meeting confirmed that the threshold for service providers stays at ₹20 lakh.
- Exceptions to the ₹40 lakh limit: it does not apply to makers or sellers of ice cream and edible ice, pan masala, or tobacco products, nor to anyone required to register compulsorily under section 24 of the CGST Act.
Aggregate turnover is counted across all your businesses under one PAN, not shop by shop. If you are close to the limit, register before you cross it rather than after. Voluntary registration is allowed, and some buyers, especially companies, will only deal with registered suppliers because they want to claim input tax credit.
The composition scheme
Composition is a simpler option for small registered businesses. Instead of charging GST at the normal rate on every invoice, you pay a small flat percentage of turnover, file one annual return and pay tax quarterly.
| Type of business | Turnover limit (previous year) | Tax |
|---|---|---|
| Traders and manufacturers of goods | Up to ₹1.5 crore | Low flat rate on turnover |
| Service providers and mixed suppliers | Up to ₹50 lakh | 6% (3% CGST + 3% SGST) |
The limits are from the GST Council’s 2019 decisions, which took effect on 1 April 2019. The trade-off is real: composition taxpayers cannot claim input tax credit and cannot charge GST to customers, which can make you less attractive to business buyers. A neighbourhood store selling mainly to households often gains from it. A supplier to companies often does not. Opt in on the GST portal before the start of the financial year in which you want it to apply.
How to apply on the GST portal
The GSTN user manual sets out the process. There is no government fee.
- On gst.gov.in, go to Services, then Registration, then New Registration. Choose taxpayer type, Tamil Nadu and your district, and enter the business’s legal name and PAN.
- Verify the mobile and email OTPs. You get a Temporary Reference Number (TRN). Unsubmitted applications are purged after 15 days.
- Log in with the TRN and complete Part B: business details, promoters, authorised signatory, principal place of business, goods and services, and bank details.
- Upload proof of the place of business, such as a property tax receipt, electricity bill or rent agreement, plus photographs.
- Complete Aadhaar authentication through the link sent by SMS and email. If biometric authentication is required, book a slot at a GST Suvidha Kendra.
- Submit using EVC (OTP), e-signature or a digital signature. Companies and LLPs must use a digital signature. You receive an Application Reference Number.
The faster route for small suppliers
From 1 November 2025, a simplified registration scheme under Rule 14A lets applicants whose monthly output tax on supplies to other businesses is up to ₹2.5 lakh get registered electronically within three working days, provided Aadhaar authentication succeeds. The GST Council newsletter notes that only one such registration is allowed per PAN in a state. Most small Chennai businesses will fall within that limit.
Where to get help in Chennai
- State helpdesk: the Tamil Nadu Commercial Taxes Department lists a toll-free line, 1800 103 6751, and the email helpdesk.ctd@tn.gov.in on its FAQ page.
- GSTN helpdesk: 1800 103 4786, for portal and technical issues.
- In person: the department’s computer wing is in the Integrated Building for Commercial Taxes and Registration (South Tower), Saidapet, Chennai 600 035.
Many small businesses use a tax practitioner. That is fine, but keep the login with you, and never let anyone file using your Aadhaar OTP without telling you. For your specific situation, consult a chartered accountant or GST practitioner.
Quick answers
I run a tiffin service from home. Do I need GST?
A food service is generally treated as a supply of services, so the ₹20 lakh limit is the one to watch. You still need FSSAI registration separately.
Is there a fee for GST registration?
No government fee is mentioned in the official process. Any charge would be a consultant’s fee.
How quickly is GST registration approved?
Under the simplified scheme for small suppliers, within three working days after Aadhaar authentication. Other applications can take longer, especially if an officer orders a physical verification.
Can I leave the composition scheme later?
Yes. You can withdraw and move to normal tax payment through the portal, after which normal invoicing and credit rules apply.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
Sources
- Notification No. 10/2019-Central Tax: ₹40 lakh exemption for suppliers of goods (GST Council)
- Decisions of the 32nd GST Council meeting, 10 January 2019 (PIB, via GST Council)
- GST Council newsletter, October 2025: simplified registration under Rule 14A (GST Council)
- User manual: apply for new registration as a normal taxpayer (GSTN)
- FAQ and helpdesk contacts (Commercial Taxes Department, Government of Tamil Nadu)
