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New turnover threshold in GST for registration

In this article, attempt has been made to enlist various thresholds (as amended from time to time) as prescribed under the GST law for normal registration in different States/UTs, thresholds for Composition registration and a snapshot on Notification No. 2/2019- CT (Rate). Read on…

Normal Registration in case of Goods:

Particulars

States/UTs

Relevant Sections, etc.

Limits

Period/Effective Date

Person engaged in Inter-State Supply

All States and UTs

Section 24

No limit

W.E.F. 1st July, 2017

Person engaged only in ‘Intra-State’ Supply of only goods except of following tariff items:

  i.       2105 00 00*

ii.       2106 90 20*

iii.       24*

All States and UTs except:

1.  6 North Eastern States (i.e. except Assam);

2.  Uttarakhand;

3.  Telangana;

4.  Puducherry

Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate)

40 lacs

W.E.F. 1st April, 2019

Person engaged only in ‘Intra-State’ Supply of only goods

1.   6 North Eastern States;

2.   Uttarakhand;

3.   Telangana

4.   Puducherry

Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate)

20 lacs

W.E.F. 1st April, 2019

Person engaged in supply of following Tariff items:

  i.       2105 00 00*

ii.       2106 90 20*

iii.       24*

Any State

Section 22(1)

20 lacs/10 lacs as the case may be

W.E.F. 1st July, 2017

Person engaged only in ‘Intra-State’ Supply of only goods

Assam

Section 22(1)

10 lacs

1st July, 2017 till 31st March, 2019

40 lacs

W.E.F. 1st April, 2019

Person engaged only in ‘Intra-State’ Supply of only goods

All States and UTs except:

1.   7 North Eastern States;

2.   Uttarakhand;

3.   Himachal Pradesh;

4.   Sikkim

Section 22(1)

20 lacs

1st July, 2017 till 31st March, 2019

Person engaged only in ‘Intra-State’ Supply of only goods

1.    7 North Eastern States;

2.    Uttarakhand;

3.    Himachal Pradesh;

4.    Sikkim

Section 22(1)

10 lacs

1st July, 2017 till 31st March, 2019

 

Normal Registration in case of Services:

Particulars

States/UTs

Relevant Sections, etc.

Limits

Period/Effective Date

Person engaged in Intra or Inter State Supply of Services

All States or UTs except Manipur, Mizoram, Nagaland, Tripura

Section 22(1)

20 lacs

W.E.F. 1st February, 2019

Person engaged in Intra or Inter State Supply of Services

Manipur, Mizoram, Nagaland, Tripura

Section 22(1)

10 lacs

W.E.F. 1st February, 2019

Person engaged in Intra or Inter State Supply of Services

All States and UTs

except:

1.  7 North Eastern States;

2.  Uttarakhand;

3.  Himachal Pradesh;

4.  Sikkim

Section 22(1), Section 23(2) r/w notification no. 10/2019- IT

20 lacs

13th October, 2017 till 31st January, 2019

Person engaged in Intra or Inter State Supply of Services

1.  7 North Eastern States;

2.  Uttarakhand;

3.  Himachal Pradesh;

4.  Sikkim

Section 22(1), Section 23(2) r/w notification no. 10/2019- IT

10 lacs

13th October, 2017 till 31st January, 2019

Person engaged in ‘Inter-State’ Supply of Services

All States and UTs

Section 24

No limit

1st July, 2017 till 12th October, 2017

Person engaged only in ‘Intra-State’ Supply of Services

All States and UTs except:

1.   7 North Eastern States;

2.   Uttarakhand;

3.   Himachal Pradesh;

4.   Sikkim

Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate)

20 lacs

1st July, 2017 till 12th October, 2017

 

Composition Registration (Section 10 and rule 7):

For all States and UTs “except 7 North Eastern States, Himachal Pradesh, Sikkim”

Category of Supplier

Limits

Period

Rate (% of the

turnover in the State or

UT)

Manufacturer except of following tariff items:

  i.     2105 00 00*

ii.     2106 90 20*

iii.     24*

75 lacs

1st July 2017 till 12th October, 2017

2%

1 Crore

13th October, 2017 till 31st December, 2017

2%

1 Crore

1st January 2018 till 31st March, 2019

1%

Services mentioned in Clause (b) of Paragraph 6 of Schedule II

75 lacs

1st July 2017 till 12th October, 2017

5%

1 Crore

13th October, 2017 till 31st March, 2019

5%

Any other Supplier

75 lacs

1st July 2017 till 12th October, 2017

1%

1 Crore

13th October, 2017 till 31st March, 2019

1%

 

7 North Eastern States, Himachal Pradesh, Sikkim

Manufacturer except of following tariff items:

  i.     2105 00 00*

ii.     2106 90 20*

iii.     24*

50 lacs

1st July 2017 till 12th October, 2017

2%

75 lacs

13th October, 2017 till 31st December, 2017

2%

75 lacs

1st January 2018 till 31st March, 2019

1%

Services mentioned in Clause (b) of Paragraph 6 of Schedule II

50 lacs

July 2017 till 12th October, 2017

5%

75 lacs

13th October, 2017 till 31st March, 2019

5%

Any other Supplier

50 lacs

1st July 2017 till 12th October, 2017

1%

75 lacs

13th October, 2017 till 31st March, 2019

1%

 

For all States and UTs “except 6 North Eastern States (i.e. Except Assam), Uttarakhand, Sikkim”

 

Category of Supplier

Limits

Effective Date

Rate (% of the

turnover in the State or

UT)

 

Manufacturer except of following tariff items:

i.     2105 00 00*

ii.    2106 90 20*

iii.   24*

1.5 Crore

W.E.F. 1st April, 2019

1%

 

Services mentioned in Clause (b) of Paragraph 6 of Schedule II

1.5 Crore

W.E.F. 1st April, 2019

5%

 
 

Any other Supplier

1.5 Crore

W.E.F. 1st April, 2019

1%

 

 

6 North Eastern States (i.e. Except Assam), Uttarakhand, Sikkim

 

Category of Supplier

Limits

Period

Rate (% of the

turnover in the State or

UT)

 

Manufacturer except of following tariff items:

  i.     2105 00 00*

ii.     2106 90 20*

iii.     24*

75 lacs

W.E.F. 1st April

1%

 

Services mentioned in Clause (b) of Paragraph 6 of Schedule II

75 lacs

W.E.F. 1st April

5%

 
 

Any other Supplier

75 lacs

W.E.F. 1st April

1%

 

 

Notes:

  • Normal rates are applicable when a composition supplier receives supplies on which reverse charge is applicable.
  • With effect from 1st February, 2019, a proviso has been inserted in Section 10(1) of CGST Act which provides that a person who opts to pay tax under composition scheme can supply services of value not exceeding ten percent of turnover in a State or UT in the preceding financial year or five lakh rupees, whichever is higher. Following needs to be noted in this regard:
    1. Rate of tax to be applied on such value of services is 1% or 5% as the case may be i.e. depending on the rate on which tax is paid for composition supplies.
    2. For calculating the value of services, services supplied under Clause (b) of Paragraph 6 of Schedule II should not be considered.
    3. *Tariff Items:
  • *2105 00 00: Ice cream and other edible ice, whether or not containing cocoa.
  • *2106 90 20: Pan masal
  • *24: All goods, i.e. Tobacco and manufactured tobacco substitutes.

     

    Notification No. 2/2019- CT (Rate) dated 7th March, 2019:

    1. This notification is to be effective from 1st April, 2019.
    2. This notification is issued for intra-state supplier having major value of supplies as ‘Services’;
    3. Only persons not eligible for ‘Section 10’ and having aggregate turnover of less than 50 lacs in preceding financial year can opt for this notification. Illustratively, a person having turnover of 40 lacs in which 30 lacs relates to Services.
    4. Reduced rate of 6% is applicable for first 50 lacs of Aggregate turnover.

    Regards,

    Shivashish Karnani

    Reach out to me at ca.shivashish@gmail.com/+91-9818472772

    The information provided is not a substitute for legal and other professional advice. This is only for academic discussions.

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