As per the GST Regime, businesses or business owners whose turnover exceeds Rs. 40 lakhs is required to register under GST as a traditional taxable person and Rs 10 lakhs threshold limit for businesses operated in NE and hill states. the method of registration under the GST Regime is named GST registration.
It is mandatory to register under GST for nearly all the business. If the corporate or business carries on business activities without registering under GST, it's considered an offence as per the GST rules and heavy penalties are going to be levied.
CBIC has announced the rise in threshold turnover for the business from Rs 20 lakhs to Rs 40 lakhs and it came into effect from 1st April 2019. It takes about 2 to six working to finish the GST registration process and that we can assist you to finish your GST registration just in 3 easy steps.
On considering the stress raised by MSME, the GST Council increased the edge turnover limits for GST registration. This increase within the threshold turnover limits helps to ease compliance under the GST regime. The states have an choice to prefer to continue with the prevailing limits or to a better limit. this text explains the GST Registration Threshold limits and therefore the persons or businesses to which it applies.
Goods Registration Threshold Limit
For Normal Taxpayer
It was Rs. 20 lakhs of threshold limit for the supplier of products only under the first GST regime declared by the govt in July 2017. to form it more clear, suppliers or dealers of products whose annual turnover of up to Rs 20 Lakhs aren't required to register under the GST regime. Therefore, suppliers or dealers of products with threshold turnover of Rs 20 Lakhs and above are required to register under GST compulsorily. This exemption threshold annual limit, however, has been doubled within the 32nd GST Council meeting from Rs. 20 lakhs to 40 lakhs .
For Special Category States
The threshold limit under GST registration for north eastern and hilly states was Rs. 10 lakhs within the previously followed GST regime.
The Special Category States include:
Assam
Jammu and Kashmir
Meghalaya
Arunachal Pradesh
Manipur
Sikkim
Tripura
Mizoram
Nagaland
Himachal Pradesh
Uttarakhand
The threshold limit of this State has been raised from Rs. 10 lakhs to Rs. 20 lakhs for supply of products consistent with the 32nd GST Council meeting. However, the north eastern and hilly states got an option, i.e. the companies could either choose GST Limit Rs. 40 lakhs or Rs. 20 lakhs because the annual turnover limit for GST exemption just in case of provider of products .
GST Registration Limit for Services
For Normal Taxpayer
AS per the first GST login declared by the govt in July 2017 by the turnover limit for suppliers of services was Rs. 20 lakhs excluding the special category states. However, this exemption limit for GST for service providers stays unchanged i.e. Rs. 20 lakhs as declared within the 32nd GST Council Meeting.
For Special Category States
During the initial GST regime, the exemption limit for service providers in hilly and North eastern states was Rs. 10 lakhs. However, this exemption limit stays unchanged, thus it's Rs 10 lakhs as per the 32nd GST Council Meeting.
Composition Scheme Registration Limit
The GST Registration Limit for businesses or taxpayers registered under Composition Scheme varied counting on the category of taxpayers, as follows:
For Traders and makers
As per the GST law, all the traders and makers that hold the annual turnover of up to Rs 1 Crore within the preceding fiscal year could register under GST as composition dealers. the speed of 1% GST is applicable on such traders and makers . However, the GST Registration Limit for traders and manufacturers registered under the category of composition dealers has increased as announced within the 32nd GST Council Meeting
Consequently, manufacturers and traders having a conglomeration annual turnover of up to Rs 1.5 Crores within the preceding fiscal year can register under GST as composition dealers.
But, the GST rate of 1% applicable on such manufacturers and traders remains unchanged.
For Restaurant Service Only
Under the GST law. service providers, i.e. restaurant services only with an aggregate turnover of up to Rs 1 Crore within the preceding fiscal year could register GST as composition dealers. and therefore the rate of GST applicable on these sorts of service providers was 5%.
However, the GST Registration Limit for Restaurant service providers registered as composition dealers has also been raised as announced within the 32nd GST Council Meeting. Therefore Restaurant service providers holding an aggregate annual turnover of up to Rs 1.5 Crores within the predating fiscal year can now register under GST as composition dealers. and therefore the rate of fifty GST was applicable on such restaurant service providers stays unchanged.
For other Service Providers
Service providers excluding restaurant related services, couldn't choose a Composition dealer under the first GST structure. However, as per 32nd GST Council Meeting, a replacement Composition Scheme shall now be available for Mixed Suppliers or Suppliers of Services with a rate of 6% (3% CGST +3% SGST). And these service providers should hold the edge annual turnover up to Rs 50 lakhs within the preceding fiscal year .