GST Registration Threshold/Exemption Limits

GST Registration Threshold Exemption Limits


According to the GST Act, businesses with annual revenue of up to 40 lakhs (Rs. 20 lakhs for states that fall under a specific category) are exempt from GST registration. This ceiling limit is often recalled threshold ceiling or the GST exemption ceiling. It becomes necessary to register for GST if a company’s yearly turnover surpasses the threshold amount. It means that the company can receive an input tax credit for the tax it paid on its purchases.

However, there are different regulations on GST on e- platforms. Regardless of turnover, a company selling items through an online retailer must register for GST. This is so that the e-commerce operator, acting on behalf of the seller, can collect and remit GST.

Who Must Seek Registration Under GST?

If a supplier’s total annual revenue exceeds certain threshold levels, it must be registered under the GST Law in the state where they make a taxable supply of goods and services.

The following categories must compel registration:

  • Those individuals who make any taxable interstate supplies. such as from Gujarat to Uttar Pradesh
  • Any Temporary Taxpayer
  • A non-resident taxpaying individual without a fixed residence in India.
  • Those people who must pay tax under the Reverse Charge
  • Those who must be required to withhold tax at source (TDS)
  • Supplier’s representatives Input Service Distributor
  • Individuals who provide goods or services through online retailers
  • Every E-commerce Operator. E.g. Amazon, Flipkart, and Snapdeal, etc.
  • An aggregator who supplies services under his brand name

What Is a Composition Scheme?

For taxpayers, the composition is a straightforward and uncomplicated GST method. Small taxpayers can avoid time-consuming GST processes and pay GST at a fixed rate if their turnover rate is less than Rs. 1.5 crore.

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A taxpayer who earns less than Rs 1.5 crore per year may choose the composition scheme. According to the GST Act of 2018, the limit is now Rs 75 lakh in North-Eastern and Himachal Pradesh. A composition dealer may also provide services up to an amount of their choice.

32nd council meeting

  • The Amendment took effect on February 1st, 2019. Additionally, the GST Council1 increased it for service providers on January 10th, 2019, at its 32nd meeting. Considering all firms registered with the GST Regulations And Rules, turnover should be calculated.
  • The GST Council, which is made up of the central and state finance minister, comprises GST tax rates, rules, and regulations.
  • The Union Finance Minister chairman and other 33-member GST governing board.
GST Exemption Limits

What Resolution Was Made At The 32nd GST Council Meeting?

  • The GST Council increased the GST Exemption Limit to Rs. 40 lacks, double the previous limit. It used to be Rs. 20 lakh.
  • Additionally, the exemption threshold for the northeastern states has been raised from Rs. 10 lacks to Rs. 20 lacks.
  • Other decisions which were taken are the rate will be applied to services and mixed supplies up to Rs 50 lakhs. Under the new lowered limit, about 20 lakh taxpayers will be eligible for benefits.
  • For two years, Kerala is permitted to levy a maximum calamity cess of 1%, only to apply to transactions within the state.
  • To assist the state in recovering from floods, this has been done to assist the state in recover floods and help small businesses opt out of the GST Tax Net.
  • A panel of seven ministers has been tasked with addressing the GST on real estate.
  • After disagreements surfaced during the meeting, the council resolved to create a seven-member group of ministers to discuss the GST rate for the real estate sector.
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 The GST Exemption Limit:

  • Each one of these decisions is intended to help SMEs. They have been given various options. They would be eligible for 6 percent compounding if they are in the service sector. On the other hand, if they are in the manufacturing sector and are trading up to Rs 1.5 crore, they can get 1 percent compounding. They can make use of exemptions of up to Rs 40 lakh.
  • Under the composition scheme, traders and manufacturers can pay taxes at a concessional rate of 1%, while restaurants pay 5% GST. More than 1.17 crore businesses have registered themselves under the GST, which rolled out on July 1, 2017. Out of these, over 18 lacks have opted for the composition scheme.
  • While a regular taxpayer must pay monthly taxes, a composition supplier must pay quarterly taxes. He is not required to keep detailed records compared with an average taxpayer under GST.


The GST Council provides many benefits to the ordinary citizens of India through such endeavours. The decision of the GST Exemption Limit might be a political motive or any other reason; it is proving a boon to the people.

Frequently Asked Questions

Is the GST exemption limit 20 lakhs or 40 lakhs?

The annual turnover threshold for firms operating in most states is Rs. 40 lakhs for most service delivery.

Is GST exempt up to 40 lakhs?

GST most lakes are available to suppliers whose turnover is between Rs. 20 lakhs and Rs. 40 lakhs.

What is the exemption from particular GST?

Businesses with annual revenue of up to Rs. 40 lakhs. Twenty lakhs for the special categories. According to the th GST Act, businesses have annual revenue of up to Rs. 40 lakhs.

What are exempt services under GST?

Exempted Services Under GST Examples of non-GST items are Fish, grapes, melons, eggs, ginger, garlic, unroasted coffee beans, unprocessed green tea leaves, and other products. foodFoodskaged with a brand name, such as rice, hulled cereal grains, wheat, and maize.

Is 20 lakh exempt under GST notification?

To be more precise, the GST regime’s registration requirements do not apply to goods with a yearly revenue of up to Rs 20 Lakhs; therefore, GST registration is required if a supplier or dealer of goods has a threshold turnover of more than Rs 20 lakh. Every person who exclusively supplies goods and whose annualised revenue exceeds Rs. 40 lahks is required to register for GST. Before that, the restriction for a goods seller. But the amount was raised to 40 lakhs. Based on Central Tax Notification No. 10/2019, dated March 7, 2019.

Is GST exemption up to 40 lakhs notification?

Except for individuals making intra-State deliveries in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand, the new GST registration GST on the online threshold for those engaged in the supply of commodities has been raised to 40 lakhs.

What are the exemptions from GST registration notification?

When a person’s total annual revenue surpasses Rs. 10 lakhs for particular category information and Rs. 20 lahks for normal category states, they must register.



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