This article talks about the GST registration limit, GST Exemption limit for service provider, GST turnover threshold in India, GST New Exemption limit in 2019, GST Registration Limit Amendment, GST Registration Limit Notification so you will get an idea about these things.
Goods and Service Tax (GST) is an indirect tax which is collected by the state and central government. According to the new amendment which is made by the GST council held that GST registration is mandatory for those businesses whose turnover is more than 40 lakh rupees and in some states, the limit of exemption is 20 lakh rupees. From 1st April the limit of a threshold for MSMEs will continue to be Rs. 20 lakh and in some states the threshold for MSMEs will be Rs. 10 lakh. It is important for service providers and it is mandatory for some businesses and in case failure of GST registration you may get punishment of imprisonment. The new amendment takes effect from 1st April 2019. After the amendment of limit, now small businesses will get the benefit of this because the limit of exemption has now increased. Before this amendment, the limit of exemption was 20 lakhs but now it is 40 lakhs
GST New Exemption limit in 2019
The new GST exemption limit in 2019 for the service provider are 40 lakh and 20 lakh rupees and states have the option to decide on the limit of exemption. According to the new amendment, now those businesses whose turnover is more than 40 lakh rupees are required to register under GST and below 40 lakh rupees, your business is exempted. This exempted limit is 20 lakh in some states and states have the option to decide on the limit of exemption. Before the amendment, the exemption limit was 20 lakhs and in some state, it was 10 lakh rupees but now it has changed. The new exemption limit will give a boost to the small and medium enterprises, now they are exempted under GST. If you are selling your product inter-state then you will not be exempted under the new amendment.
How to calculate aggregate turnover for GST Limit
It is very important to calculate the aggregate turnover accurately because your aggregate turnover will decide that whether you can avail the exempted limit or not and it is also important to decide whether you can avail the benefits under composition scheme or not. Calculation of aggregate turnover is very easy, first, you have to add the value of taxable supplies, exempt supplies, exports, and inter-state supplies, after adding all of the supplies, you have to subtract the value of inward supplies, the value of supplies taxable under reverse charge and non-taxable supplies. So as you can it is very easy to calculate aggregate turnover. Basically, during calculating aggregate turnover, you have to exclude the value of taxes payable on reverse charge mechanism and non-taxable supply of goods.
GST Registration Limit 2019 Amendment under Composition Scheme
According to the new amendment, the composition scheme under GST is changed, now a GST taxpayer whose turnover is below rupees 1.5 crores can apply for composition scheme under GST, earlier GST turnover threshold in India for obtaining this composition scheme was 1 crore but now the limit is 1.5 crore and in some state it is 75 lakh rupees. So if you are an opting for the composition scheme then you don’t have to pay tax under the exempted limit and you have to file a return once a year before the amendment is was quarterly but now you have to file a return once a year that is a relief for MSMEs because there will be fewer compliances required.
Special Category states for GST Registration Limit 2019
Some states have a special status for exemption limit and those businesses whose turnover is less than 20 lakh rupees will be exempted to pay tax and limit of composition scheme is also different for these states. Here is the list of special categorized states under GST –
- Arunachal Pradesh
- Assam
- Jammu and Kashmir(Fully exempted)
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Himachal Pradesh
- Uttarakhand
Conclusion on GST Registration Limit
As you can see in the above given article that GST registration is an important registration for those businesses whose turnover is more than 40 lakh rupees and in some state the limit of exemption is 20 lakh rupees and it is mandatory for some businesses so if your business is required to done registration under GST then you should register your business under GST otherwise you have to pay huge fine for it or you may get punishment of imprisonment. GST registration limit 40 lakhs rupees which means below 40 lakh rupees your registration is not required. As you can see that calculation of aggregate turnover is also important for deciding whether a business is required to register under GST. If you are thinking of GST registration then you should consider the above given things for better understanding.