What is the Threshold Limit for GST registration?

The GST is applicable from 1st July 2017, and from that, there are many changes taken place. Due to such a number of amendments within the Act, there is a lot of confusion regards to threshold limit for registration under the Act. Here in this article, an effort has been made to explain the need for registration under GST.

Following are the cases where a normal taxable person is required to get GST registration:-
  • (a) Crossing of Threshold limit of aggregate turnover.
  • (b) Compulsory Registration.
  • (c ) Voluntary Registration.

New Turnover Limit for (Sale of Goods) Enterprises:-

Normal Category states Exceeds Rs. 40 LakhW.E.F. 01/04/2019
Special Category statesExceeds Rs. 20 LakhW.E.F. 01/04/2019

New Turnover Limit for (Service Provider) Enterprises:-

Normal Category statesExceeds Rs. 20 LakhW.E.F. 01/04/2019
Special Category statesExceeds Rs. 10 LakhW.E.F. 01/04/2019

Old Limit for (sale of goods/service provider) Enterprises:-

Normal Category statesExceeds Rs. 20 LakhUp to 31/03/2019
Special Category statesExceeds Rs. 10 LakhUp to. 31/03/2019

The GST Council, on considering the issues raised by MSME and other taxpayers, increased the threshold limits for GST registration. This very helps to ease compliance under GST. The states have a choice to opt for a new limit or continue with the existing limits.

Normal & Special Category States who opted for the new limit:-

Following are the Normal Category States who opted for a new limit of Rs.40 lakh.

Chhattisgarh, Jharkhand, Delhi, Bihar, Maharashtra, Andhra Pradesh, Gujarat, Haryana, Goa, Punjab, Uttar Pradesh, J&K, Assam, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu, West Bengal

Following are the Normal Category States who choose earlier limits.

Kerala and Telangana

Following are the Special Category States who opted for new limit of Rs.20 lakh

Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand

As per the section 24 of CGST Act 2017, certain categories of persons shall be compulsorily required to be registered under GST, even if their aggregate turnover is below the specified exemption limit and are exempted from GST registration under section 22(1) – section 24(1) of CGST and SGST Act.

Other amendments in the threshold limits for the Composition dealer:-

The threshold of annual turnover for composition dealer was increased to Rs.1.5 crores from 1st April 2019. The taxpayers registered under the scheme have to pay tax quarterly and file returns annually from 1st April 2019.

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