What is the Limit for GST registration?

| |

The Goods and Services Tax (GST) is an all-encompassing multi-step destination-based tax that is assessed on any and all value added. The GST’s key benefits include transforming India into a single market by eliminating interstate obstacles, taxing inequalities, check post delays, and challenges with transit permits. The use of illicit money and corruption are also reduced. Additionally, because firms may now use input tax credits in all States, the GST will save them money. The reduction in the overall tax burden on products and services will benefit the final consumer. Thus, Registering under GST is beneficial for innumerable ways and some businesses mandatorily require GST Registration. So, if you are starting a business or already have a business, you must know about the Limit for GST Registration.

What is GST Registration?

Any business organization that registers under the GST Law gets a special identification number (GSTIN) from the relevant tax authorities in order to collect taxes on behalf of the government and claim input tax credits for the taxes paid on his inward supplies. In short, GST Registration is the process to obtain the GSTIN and GST Registration certificate so that business can operate as per the GST Rules and Regulations.

Learn about the process of GST Registration at: How to get GST Registration if I am starting a new online business 

When does a Liability of registering under GST arises?

A “supplier” within the meaning of the term is generally required to register under GST, as is the case if their total annual revenue exceeds the applicable exemption threshold. However, the GST law includes a few kinds of suppliers who must register regardless of their revenue, meaning they are not eligible for the defined threshold exemption limit.

Know about the Annual Turnover Limit for GST Registration

Every supplier must register with GST since it is a tax on the “supply event.” However, business owners with all-India aggregate sales below Rupees40 Lakh (in case of exclusive supply of goods) (Rupees 20 lakh if business is in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand) and Rupees 20 lakhs (in case of supply of services or mixed supplies) (Rupees 10 lakh if company is in Manipur, Mizoram, Nagaland, and Tripura) need not register. However, small enterprises with annual turnover under the threshold limit are free to get Voluntary GST Registration.

What is the Annual Turnover Limit as per the GST Rules and Regulations?

According to the GST law, “aggregate turnover” refers to the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both, and interstate supplies of persons having the same Permanent Account Number. This total value is calculated on an all-India basis but does not include Central tax, State tax, Union territory tax, Integrated tax, and cess.

Annual aggregate turnover is the total turnover computed for the complete fiscal year, from April of one year to March of the following year. In other terms, it is the sum of the following values for the total turnover measured at the PAN level (all GSTINs combined):

  • Value of taxable sales
  • Value of exempt sales
  • products and services exported
  • Interstate stock transfers or supplies between different people under the same PAN or supplies made by the company to its sister company under the same PAN.

The Central tax, State tax, Union territory tax, Integrated tax, and Cess are not included in the aforementioned figure. Furthermore, the purchases that are subject to the reverse charge for tax are not included in the taxable value. Keep in mind that the sales that are subject to reverse charge must continue to be included in the total turnover of the taxable supply.

Take a call from Expert

GST Registration for One person company in India

moreover, If you want any other guidance relating to GST Return Filing or GST Registration, please feel free to talk to our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates narrating to your business.


12A and 80G Registration for NGO: Process, Benefits, Document

GST liability on commission agents brokers


Leave a Comment