My supplies are mostly exempt — do exempt sales still count for GST registration?
Reviewed June 2026
Yes — and this is one of GST's most underrated surprises. The registration test looks at your aggregate turnover: taxable, exempt, export and inter-state supplies, added together across all your operations under one PAN. Exempt sales don't pay tax, but they very much count toward the threshold.
That's how a business dealing mostly in exempt goods — unbranded food staples, for instance — with only a small taxable side-line can quietly cross the line: the exempt bulk pushes the aggregate over, and the taxable slice makes registration due.
The reassuring part: registering doesn't tax your exempt supplies — they stay exempt. It simply brings the taxable slice into the net, with input credits to match and clean invoicing throughout. If your mix has both flavours, a short computation settles your position — we'd be glad to run it with you.
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This explainer simplifies the law on purpose and is general guidance, not advice on your specific facts. Rules, rates and thresholds evolve. For your situation, talk to us — that first conversation is exactly what we’re here for.