Business PlanGSTLegal Advice

GST Registration Limit for Goods

What is the mandatory GST threshold limit for providers/suppliers of goods under the latest indirect tax regime? Let’s find out.

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A business entity whose annual turnover exceeds Rs.40 lakh for a supplier of goods is required to register under the Goods and Services Tax. For some North Eastern and hilly states designated as special category states & the state of Telangana, the ceiling is fixed at Rs. 20 lakhs. 

Whose Threshold Limit for Supply of Goods is ₹ 40 lakh

  • Jammu and Kashmir
  • Ladakh
  • Assam
  • Kerala
  • Chhattisgarh
  • Jharkhand
  • Delhi
  • Bihar
  • Maharashtra
  • Andhra Pradesh
  • Gujarat
  • Haryana
  • Goa
  • Punjab
  • Uttar Pradesh
  • Himachal Pradesh
  • Karnataka
  • Madhya Pradesh
  • Odisha
  • Rajasthan
  • Tamil Nadu
  • West Bengal
  • Lakshadweep
  • Dadra and Nagar Haveli
  • Daman and Diu, 
  • Andaman and Nicobar Islands 
  • Chandigarh

States Whose Threshold Limit for Supply of Goods is ₹ 20 lakh

  • Arunachal Pradesh
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Puducherry
  • Sikkim
  • Telangana
  • Tripura
  • Uttarakhand

 Aggregate Turnover Threshold Limit for Supply of Goods

Aggregate turnover refers to the total value of all taxable supplies (excluding inward supplies on which a person pays tax on a reverse charge basis), exempt supplies, exports of goods or services or both, and inter-state supplies of persons with the same Permanent Account Number (PAN), quantified on an all-India premise but excluding central tax, state tax, union territory tax, Integrated tax, and cess.

To help you comprehend the idea of aggregate turnover, consider the following example.

Mr. Raju is a farmer with a ₹ 55 lakh annual revenue. The turnover is GST-free since the income is tied to agriculture. Mr. Anil, on the other hand, includes plastic bags with his crop and charges extra for them. His sales of plastic bags generate a revenue of ₹ 1 lakh, and we know that this transaction (selling of plastic bags) is subject to GST. In plain English, his aggregate turnover is simply ₹ 1 lakh.

 Reverse Charge Mechanism for Supply of Goods 

Reverse Charge: – ‘the liability to pay tax by the recipient of the supply of goods or services or both instead of the supplier of such goods or services or both under section 9(3) or 9(4) of CGST Act or under section 5(3) or 5(4) of IGST Act.’

Generally, the supplier is responsible for collecting tax from the recipient of products or services and thereby remitting it to the appropriate tax authorities. However, the government has been granted the authority where the providers of some notified goods and services are not required to pay tax and the receiver himself is required to deposit the tax with the tax authorities. 

Description of supply of Goods Supplier of Goods Recipient of Goods
Cashew nuts (not shelled or peeled) Agriculturist Any registered person
Bidi Wrapper Leaves (tendu), Tobacco Leaves Agriculturist Any registered person
Silk Yarn Manufacturer of silk yarn from raw silk or silk worm cocoons Any registered person
Lottery State Government, Union Territory or local authority Lottery distributor or selling agent
Raw Cotton Agriculturist Any registered person
Used vehicles, seized and confiscated goods, old and used goods, waste and scrap

Central Government, State Government,

Union Territory or local authority

Any registered person
Purchase of priority sector lending certificate Registered person Any registered person

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