GST REGISTRATION THRESHOLD LIMIT RS.40 LAKHS WITH EFFECT FROM 1.4.2019 IN INDIA
The Goods and Services Tax Act, 2017 came
into force in India with effect from 1.7.2017.
The GST Registration threshold limit has
been increased from Rs. 20 lakhs to Rs. 40 Lakhs in India i.e. exempt from
obtaining Registration under GST regime.
The increased threshold limit of Rs. 40 lakh
is applicable to any person, who is engaged in exclusive supply of goods
and whose aggregate turnover in the financial year does not exceed forty lakh
rupees.
Voluntary Registration under GST is
available irrespective of turnover under GST.
The threshold registration
aggregate turnover limit has not been increased to Service Providers.
The revised threshold limit of Rs. 40 lakhs
will not be applicable in the following States and the threshold limit existed will be applicable and continue.
Arunachal Pradesh
Manipur
Meghalaya
Mizoram
Nagaland
Puducherry
Sikkim
Telengana
Tripura
Uttarakhand.
The revised threshold limit of Rs. 40 lakhs
will not be applicable to the following persons required to take compulsory
registration under section 24 of the CGST Act, 2017.
(i)
Persons making any inter-State taxable supply;
(ii)
Casual taxable persons making taxable supply;
(iii)
Persons who are required to pay tax under reverse charge;
(iv)
Persons who are required to pay tax under sub-section (5) of section 9;
(v)
Non-resident taxable persons making taxable supply;
(vi)
Persons who are required to deduct tax under section 51, whether or not
separately registered under this Act;
(vii)
Persons who make taxable supply of goods or services or both on behalf of other
taxable persons whether as an agent or otherwise;
(viii)
Input Service Distributor, whether or not separately registered under this Act;
(ix)
Persons who supply goods or services or both, other than supplies specified
under sub-section (5) of
section 9, through such electronic commerce operator who is required to collect
tax at source under section 52;
(x)
Every electronic commerce operator;
(xi)
Every person supplying online information and database access or retrieval
services from a place outside India to a person in India, other than a
registered person; and
(xii)
Such other person or class of persons as may be notified by the Government on
the recommendations of the Council.
Similarly the following persons exercising option under the
provisions of sub-section (3) of section 25, or such registered persons who
intend to continue with their registration under the said Act.
Table Sl. No.
|
Tariff item, sub-heading, heading
or Chapter
|
Description
|
(1)
|
(2)
|
(3)
|
1
|
2105 00 00
|
Ice cream
and other edible ice, whether or not containing cocoa.
|
2
|
2106 90 20
|
Pan masala
|
3
|
24
|
All goods,
i.e. Tobacco and manufactured tobacco substitutes
|
Higher exemption threshold limit for supplier of goods: There would be two threshold
limits for exemption from registration and payment of
GST for the suppliers of goods i.e. Rs
40 lakhs and Rs 20 lakhs.
States would have an option to decide about one of the limits. The threshold for registration for service providers would continue
to be Rs 20 lakhs and in case of Special category States
Rs 10 lakhs. For this purpose viewers must refer their SGST Notifications
of respective State’s GST websites.
The revised threshold limits for exemption
from registration and payment of GST comes into force with effect from 1.4.2019
in India.
The relevant CGST notification is given below
for ready reference:
[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION
(i)]
Government
of India
Ministry of Finance
(Department of Revenue)
Notification No. 10/2019-Central
Tax
New Delhi, the 7th March,
2019
G.S.R (E).- In
exercise of the powers
conferred by sub-section
(2) of section 23 of
the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter referred to as the “said Act”), the Central Government, on the recommendations of the Council, hereby
specifies the following category
of persons, as the category of persons exempt from obtaining registration under the said
Act, namely,-
Any person, who is engaged in exclusive supply of goods and whose
aggregate turnover in the financial year does
not exceed forty lakh rupees, except, -
(a) persons
required to take compulsory registration
under section 24 of the said Act;
(b) persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling
under the tariff item, sub-heading, heading
or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said
Table;
(iii) persons engaged in making
intra-State supplies in the States of Arunachal Pradesh, Manipur,
Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura,
Uttarakhand; and
(iv) persons exercising
option under the provisions of sub-section (3) of section 25, or such registered persons who
intend to continue with their registration under
the said Act.
Table
Sl. No.
|
Tariff item, sub-heading,
heading or Chapter
|
Description
|
(1)
|
(2)
|
(3)
|
1
|
2105 00 00
|
Ice cream and other
edible ice, whether or not containing cocoa.
|
2
|
2106 90 20
|
Pan masala
|
3
|
24
|
All goods, i.e. Tobacco and manufactured
tobacco substitutes
|
2.
This notification
shall come into force on
the 1st day of April,
2019. [F.No.354/25/2019-TRU]
(Gunjan Kumar Verma) Under
Secretary to the Government of India
Press Release 7th March, 2019
Implementation of various
decisions
taken by the GST Council for the MSME
sector
The GST Council in its 32nd meeting held on 10th January, 2019, inter-alia, had taken following decisions
to be effective from 01.04.19:
· Higher exemption threshold limit for supplier of goods: There would be two threshold
limits for exemption from registration and payment of
GST for the suppliers of goods i.e. Rs
40 lakhs and Rs 20 lakhs.
States would have an option to decide about one of the limits. The threshold for registration for service providers would continue
to be Rs 20 lakhs and in case of Special category States
Rs 10 lakhs.
· Composition scheme for services and mixed suppliers: A composition scheme shall be made available
for suppliers of services (or
mixed suppliers) with a tax rate of 6% (3% CGST
+ 3% SGST) having an annual turnover in preceding financial year
upto Rs 50 lakhs.
· Increase in turnover limit for the existing composition
scheme: The limit of annual turnover in the preceding financial year for availing composition scheme for goods shall
be increased to Rs 1.5 crore. Special category
States would decide about the composition limit in
their respective States.
2. The following notifications have been
issued to
implement the above decisions:
· Notification No. 10/2019
– Central Tax, dated the 7th of March, 2019 for higher
exemption
threshold
limit
for supplier of goods;
· Notification No. 02/2019 – Central Tax (Rate), dated the 7th of March, 2019 for
Composition scheme for services and mixed suppliers, which would be optional to the
taxpayers;
· Notification No. 14/2019 – Central Tax, dated the 7th of March, 2019 for increase in
turnover limit
in case of existing composition
scheme.
3. These notifications shall
come into effect from
the
1st of April,
2019.