GST Registration Threshold Limits For Services

According to the GST regime, businesses or business owners whose turnover exceeds Rs. 40 lakhs are required to register under GST as a normal taxable person, and GST Registration Threshold Limits for Services Operated in North East and Hilly States are Rs 10 lakhs. GST registration refers to the process of registering under the GST Regime.

Almost all businesses are required to register for GST. If a company or business conducts business without registering for GST, it is considered an offence under the GST rules, and heavy penalties will be imposed. The threshold limits for service providers have not changed. Persons providing services must register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states) (for special category states).

The GST Council has increased the GST Exemption Limit from payment of goods and services tax (GST) from Rs 10 lakh to Rs 40 lakh. Previously, it was Rs. 20 lakh. In addition, the exemption limit for the north-eastern states has been raised to Rs 20 lakh from Rs 10 lakh previously.

A company whose total revenue in a fiscal year exceeds Rs 20 lakhs is required to register for Goods and Services Tax. This limit is set at Rs 10 lakhs for special category states in the North Eastern and hilly regions. CBIC announced an increase in the business threshold from Rs 20 lakhs to Rs 40 lakhs, which went into effect on April 1, 2019. GST registration online takes 2 to 6 working days, and we can help you complete your GST registration in just three simple steps.

The GST Council increased the threshold turnover limits of hits GST registration in response to MSME demands. This increase in the threshold turnover limits helps to ease GST compliance. The states have the option of maintaining the current limits or raising them. This article explains the GST Registration Threshold limits and who or what businesses are affected by them. All service providers, like any other type of business, must register for GST if their aggregate annual turnover exceeds Rs.20 lakh in most states and Rs. 10 lakh in Special Category States. Mandatory registration is required for any other person or group of people whom the Central Government or a State Government may notify based on the GST Council's recommendations. GST does not apply to assesses with a turnover of less than 20 lakhs. Proceed with the surrender of your GST registration.

Goods Registration Threshold Limit

For Normal Taxpayer

Under the initial GST regime, which the government announced in July 2017, the threshold limit for the provider of products was only set at Rs. 20 lakhs. To be more specific, providers or dealers of commodities with a yearly turnover of up to Rs 20 Lakhs are exempt from the GST regime's registration requirements. Suppliers or dealers of products must therefore compulsorily register under the GST if their threshold turnover exceeds Rs 20 lakh. However, the 32nd GST Council meeting quadrupled this exemption threshold annual cap from Rs. 20 lakhs to Rs. 40 lakhs.

Additionally, the exemption threshold limit of up to Rs 40 lakhs does not apply to the following taxpayers:

It is mandatory to register under Section24 of the CGST Act
Involved in business of supply of goods such as:

• Ice cream and other edible products related to ice whether or not containing cocoa
• Tobacco and tobacco manufactured substitutes
• Pan masala

For Special Category States

In the prior GST system, the threshold limit for north eastern and hilly states to register for GST was Rs. 10 lakhs.

State members of the Special Category are:

• Assam
• Jammu and Kashmir
• Meghalaya
• Arunachal Pradesh
• Manipur
• Sikkim
• Tripura
• Mizoram
• Nagaland
• Himachal Pradesh
• Uttarakhand

According to the 32nd GST Council meeting, this State's threshold limit for the supply of products has been increased from Rs. 10 lakhs to Rs. 20 lakhs. However, firms in the north-eastern and hilly regions had a choice as to whether their annual revenue would be subject to the GST exemption threshold of Rs. 20 lakhs or Rs. 40 lakhs.

GST Registration

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GST Registration Limit for Services

For Normal Taxpayer

According to the original GST structure announced by the government in July 2017, the turnover threshold for service providers, excluding special category states, was Rs. 20 lakhs. However, this exemption amount for service providers from GST, which is set at Rs. 20 lakhs, remains the same as it was announced at the 32nd GST Council Meeting.

For Special Category States

The exemption threshold for service providers in hilly and North Eastern states during the initial GST system was Rs. 10 lakhs. This exemption amount, however, remains unchanging; as of the32nd GST Council Meeting, it is Rs 10 lakhs.

Composition Scheme Registration Limit

According to the category of taxpayers, the GST Registration Limit for entities or taxpayers registered under the composition scheme varied as follows:

For Traders and Manufacturers

All producers and traders who had a prior financial year annual turnover of up to Rs 1 Crore were eligible to register as composition dealers under the GST law. These producers and traders are subject to a 1% GST tax. However, as stated in the 32nd GST Council Meeting, the GST Registration Limit for manufacturers and traders registered under the category of composition dealers has increased.

Manufacturers and traders can therefore register under GST as composition dealers if they had a cumulative annual revenue of up to Rs 1.5 Crores in the last financial year.

However, the 1% GST charge still applies to these manufacturers and traders.

For Restaurant Service Only

Only service operators, such as restaurants, who had a combined revenue of up to Rs 1 Crore in the last fiscal year were eligible to register for GST under the GST law. The percentage of these service providers where the Goods and Services Tax was applied hit and missed was 5%.

However, as stated at the 32nd GST Council Meeting, the GST Registration Limit for Restaurant Service Providers Registered as Composition Dealers has also been enhanced. Restaurant service providers can now register under GST as composition dealers if they have a combined annual sales of up to Rs 1.5 Crores in the last financial year. Additionally, the GST rate of 5% that was already applied to certain restaurant service providers remains the same.

For other Service Providers

Under the initial GST framework, service providers could not choose a composition dealer if they did not supply services to restaurants. A new composition scheme, with a tax rate of 6% (3% CGST + 3%SGST), will, however, be made accessible for mixed suppliers and service providers as of the 32nd GST Council Meeting. Additionally, these service providers must have achieved the minimum annual sales of Rs. 50 lakhs in the Financial Year before.

Compulsory Registration Under GST

The types of taxpayers who are subject to mandatory GST registration. These categories are listed below according to Section 24 of the 2017 CGST Act. Accordingly:

• People or organizations that engage in interstate taxable supply
• People who must pay tax under the casual taxable
• People who must pay tax under the reverse charge
• Non-resident taxable individuals who are compelled to pay tax under section 9's subsection (5)
• Those who must pay TDS (Tax Deducted at Source) in accordance with section 51. Whether the Individuals are individually registered under the Act or not, and regardless of whether they are separately registered under the Act, this is inappropriate.
• Distributor of input services, whether or not individually registered under the Act.
• Individuals who, either as agents or otherwise, make taxable supplies of goods or services on behalf of other taxable individuals.
• those who provide goods or services other than supplies as described in section 9's subsection (5). Such supplies are made through an operator of electronic commerce, who is required by section 52to collect tax at source.
• people who were informed by the government of the Council's recommendations.
• Every single operator in electronic commerce
• individuals who provide database access or retrieval services from one location to another outside of India. These services are given to a person who is not an Indian citizen or resident.

States accepting New GST Registration Limit

The hilly and north-eastern states have the choice of choosing between Rs. 20 lakhs or Rs. 40 lakhs as the GST exemption turnover limit in cases of supplier of products, according to the 32nd meeting of the GST Council.

The status of the States implementing the various thresholds for GST registration in the event of the supply of goods is therefore listed below.

For the purposes of the GST system, Delhi and Puducherry are not currently regarded as special category states. As a result, UTGST + CGST would be imposed in 5 Union Territories and SGST + CGST would be imposed in 31 States.

Importantly, section 24 of the CGST Act,2017, mandates that all taxpayers be registered; however, anyone who transacts in interstate sales of handicrafts with a combined turnover of less than Rs 20lakhs is free from registration. For states like Manipur, Mizoram, Nagaland, Tripura, the amount is Rs 10 lakhs.

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