Turnover Threshold Checker — GST, Audit, & MSME FY 25-26

How to Use the Turnover Threshold Checker

1. Pick what you are — a goods business, a services business, or a specified professional. This sets the correct GST and audit logic.
2. Enter your annual turnover or gross receipts for the financial year, in rupees.
3. Choose your digital-transaction level — whether 95% or more of receipts and payments are non-cash. This unlocks the higher ₹10 crore audit limit and ₹3 crore / ₹75 lakh presumptive ceilings.
4. Select your state category for GST — normal or special category — then click Check Thresholds.

You get a colour-coded card for each regime — GST registration, tax audit u/s 44AB, presumptive 44AD/44ADA and MSME classification — telling you whether the threshold is crossed, and by how much. Pair it with the income tax calculator and advance tax calculator to plan the resulting liability.

GST Registration Threshold

Registration under GST becomes mandatory once your aggregate turnover crosses the limit for your supply type and state. The limits have stood since April 2019:

Aggregate turnover is computed PAN-India and includes taxable, exempt, export and inter-state supplies, but excludes GST itself. Some suppliers must register regardless of turnover — inter-state taxable suppliers, e-commerce operators and persons liable under reverse charge. Below the limit you can still register voluntarily to claim input tax credit. You can verify the live position on the GST portal, and get help with GST registration if you are close to or over the threshold.

Tax Audit Threshold (Section 44AB)

A tax audit under Section 44AB of the Income-tax Act applies when your turnover or receipts cross these FY 2025-26 limits:

*For professionals the ₹75 lakh figure relates to the 44ADA presumptive ceiling when cash receipts are within 5%; there is no separate ₹10 crore audit relief for professionals. The enhanced ₹10 crore business limit applies only when both cash receipts and cash payments are 5% or less of their totals. A tax audit is also triggered if you opt out of the presumptive scheme and declare income below the deemed rate while having taxable income. See Patron's tax audit service for Form 3CD preparation and filing.

Presumptive Taxation Limits (44AD & 44ADA)

The presumptive schemes let eligible taxpayers declare income at a fixed rate without maintaining detailed books, provided turnover stays within the ceiling:

Declaring below the deemed rate while having taxable income triggers a tax audit and book-keeping obligations. If you opt out of 44AD, you cannot rejoin for five years, and an audit applies in the interim if income exceeds the basic exemption limit. The checker tells you whether your turnover keeps you within the presumptive ceiling.

MSME (Udyam) Classification

From 1 April 2025 the MSME classification limits were revised upward, as notified by the Ministry of MSME. Classification uses a composite test of both investment in plant/machinery and annual turnover — both conditions must be satisfied, and exports are excluded from turnover:

This checker indicates your category by turnover alone; confirm the investment side too, since the higher of the two tests decides your class. Registering on the Udyam portal unlocks collateral-free credit, priority-sector lending and procurement preferences — see Udyam registration. Note that for AY 2025-26 income-tax purposes the pre-revision limits may still apply to classification, so check the relevant context.

Why Crossing a Threshold Matters

Each threshold carries a real compliance cost if missed, so it pays to track turnover through the year rather than discovering a breach at year-end.

Late GST registration

Operating above the GST limit without registering exposes you to tax on past supplies, interest and penalties, and a loss of input tax credit for the unregistered period. You must apply within 30 days of becoming liable.

Missed tax audit

Failure to get accounts audited and the report filed under Section 44AB attracts a penalty under Section 271B — broadly 0.5% of turnover up to a ceiling — unless reasonable cause is shown. Standards followed by your auditor are issued by the ICAI, and the report is filed electronically before 30 September of the assessment year.

Wrong presumptive declaration

Declaring below the deemed 8%/6% (44AD) or 50% (44ADA) rate while having taxable income removes the presumptive shelter and pulls you into audit and book-keeping obligations. The five-year opt-out lock-in under 44AD(4) can also force audits in later years.

Stale MSME status

Udyam registrations must be updated annually with current turnover and investment; non-updation can mark the registration inactive and risk the loss of MSME benefits such as priority-sector lending and procurement preference.

Frequently Asked Questions on Turnover Thresholds