Applicable Threshold Limit - GST Ready Reckoner - GST

Applicable Threshold Limit The threshold limit prescribed under section 22(1) is Rs. 20 lakh in a FY, i.e. every supplier, whose aggregate turnover in a financial year exceeds Rs. 20 lakh, is liable to be registered under GST in the State/ Union territory from where he makes the taxable supply of goods and/or services. The limit of Rs. 20 lakh will be reduced to Rs. 10 lakh if the person is carrying out business in Special Category States. However, first proviso to sub-section (1) of section 22 of the CGST Act, read with clause (iii) of the Explanation to the section 22 of CGST Act , for the purposes of registration, only Mizoram, Tripura, Manipur and Nagaland are Special Category States. Therefore, the threshold limit Rs. 10 lakh is applicable for Mizoram, Tripura, Manipur and Nagaland. Special Category state define under as per Article 279A(4)(g) of the Constitution, there are 11 Special Category States, namely, States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. Government is empowered to enhance the threshold limit of Rs. 20 lakh upto Rs. 40 lakh for a supplier engaged exclusively in the supply of goods, at the request of a State and on the recommendations of the Council. This shall be subject to such conditions and limitations, as may be notified. For the purposes of section 22(1) , a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount. The above information presented in alternative manner as following States with threshold limit of Rs. 10 lakh for supplier of goods and/or services States with threshold limit of Rs. 20 lakh for supplier of goods and/or services States with threshold limit of Rs. 20 lakh for supplier of services/ both goods and services and threshold limit of Rs. 40 lakh for supplier of goods (Intra State) Manipur Mizoram Nagaland Tripura Arunachal Pradesh Meghalaya Sikkim Uttarakhand Puducherry Telangana Jammu and Kashmir Assam Himachal Pradesh All other States Exemption :- Notification No. 10 / 2019 -Central Tax dt. 07.03.2019 exempts any person who is engaged exclusively in supply of goods and whose aggregate turnover in the financial year does not exceed Rs. 40 lakh , from registration requirement. Exceptions to this exemption are as follows: (a) Persons required to take compulsory registration under section 24 . (b) Persons engaged in making supplies of Ice cream and other edible ice, whether or not containing cocoa [2105 00 00], Pan masala [2106 90 20], Tobacco and manufactured tobacco substitutes [all goods of Chapter 24], Fly ash bricks; Fly ash aggregates; Fly ash blocks, [6815] Bricks of fossil meals or similar siliceous earths, [6901 00 10] Building bricks [6904 10 00] Earthen or roofing tiles [6905 10 00] (c) Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Telangana, Puducherry and Special Category States as per section 22 [Nagaland, Mizoram, Manipur, Tripura]. Inter-State supplies of goods are nevertheless liable to compulsory registration and are already covered in exception (a) above. (d) Person who has opted for voluntary registration or such registered persons who intend to continue with their registration under the CGST Act.