11 Jan 2019Posted By: Mudit Handa

32nd GST Council Meeting raises Threshold for GST Registration

Everyone knows that the 31st GST Council meeting had sought for rationalization of the GST tariffs amid lower budgeted tax collection in relation to the desired rate. The GST department has yet again acted as a populist, by introducing startling reforms in the GST structure, in the recently held 32nd GST Council meeting.

The 32nd GST Council meeting that was held on 10th January 2018 at New Delhi took noteworthy decisions with respect to raising of threshold limit for GST registration and changes in GST registration under the composition scheme.

These decisions shall be applicable with effect from 1st April 2019.


#1. How much has the threshold limit for GST registration been raised?

The GST council in its 32nd meeting has now recommended doubling the Threshold limit for GST Registration to ₹40 Lakhs. Earlier the threshold limit was ₹20 lakhs.

  • However, the Threshold limit for GST Registration is to be kept at ₹20 lakhs for the Hilly regions and especially, the North Eastern States.
  • Besides, the GST Council has recommended doubling the threshold limit for GST registration for Supply of Goods, i.e. from ₹20 lakhs to ₹40 lakhs. Here too, the limit has been raised from ₹10 Lakhs to ₹20 lakhs for Hilly and North Eastern States.
  • Furthermore, the Threshold limit for GST Registration for Service sector would remain at ₹20 lakhs and ₹10 lakhs for the Special Category States.
  • To sum up, there are now 2 separate Threshold Limits for exemption from GST Registration and incurring GST liability for the suppliers of Goods- ₹40 lakhs and ₹10 lakhs for the Special Category States.
  • However, the GST council has given the States the option to decide about opting for one of the limits within 1 week.


#2. What are the changes in composition scheme?

GST department has raised the threshold limit for Turnover in case of existing Composition Scheme.

  • The limit for Annual Turnover in the FY 2018-19 for availing Composition Scheme for Goods shall be raised to ₹1.5 crore.
  • The Special category States would have to decide about the Composition Threshold Limit within one week’s time.


#3. What is the new composition scheme for services and mixed supplies?

The GST Council in its 32nd meeting has now recommended for putting in place an all-new composition scheme for services and mixed supplies of goods and services.

  • Under this, the threshold limit for GST Registration would be now kept at ₹50 lakhs.
  • The GST tariff rate would be kept at 6%, which would break up into 3% CGST 3% SGST,
  • This new GST composition scheme under shall be valid to both Service Providers as well as Suppliers of Goods and Services (mixed supply), who were hitherto not eligible for the existing Composition Scheme for Goods.
  • Furthermore, the under the new scheme, the taxpayers would now be eligible for GST return filing procedure on Annual basis only, while they would have to pay GST on a quarterly basis along with a Simple Declaration.
  • This new composition scheme will be applicable with effect from 1st April 2019.


#4. What measures have been taken in the real estate sector?

  • The GST council had decided to take a few measures in the field of real estate sector.
  • However, a Group of Ministers shall be constituted with 7 members in order to examine the proposal to cover the Residential Segment of the Real Estate Sector under the Composition Scheme. This will further boost the Composition Scheme.
  • Moreover, a GoM shall be constituted to assess the GST Structure in case of Lotteries.




#5. What about the flood-hit citizens of Kerala?

The GST Council has also introduced a separate Disaster Cess on Intra-State Supply of Goods & Services within the State of Kerala at a rate not up to 1% for a period of 2 years, in order to cope with the floods in the recent past.

Also, read the to know about the Major Decisions taken in the 32nd GST Council Meeting.


If you need any guidance on GST registration, or GST return filing procedure feel free to contact our business advisor at 8881-069-069.

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