Mandatory GST registration becomes applicable only when GST providers cross a certain turnover threshold. The GST registration threshold for those involved in the supply of goods has been raised to ₹40 lakhs.
Notification No. 10/2019-Central Tax exempted from registering anybody who operates in the exclusive supply of goods and has an annual turnover of less than ₹40 lakhs (save for those making intra-state supplies in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand).
Goods and Services Tax (GST) is an indirect tax that was introduced in India on July 1, 2017. It replaced various indirect taxes such as excise duty, service tax, and value-added tax (VAT). Every business whose turnover exceeds the GST registration limit is required to register for GST. In this article, we will guide you through the latest GST registration limit.
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The GST registration online hurdle for service providers, on the other hand, remains at ₹20 lakhs for the general category states and 10 lakhs for the special category states.
What is GST registration limit?
The GST registration limit is the threshold limit beyond which a business is required to register for GST. This limit is based on the annual turnover of the business. If the turnover of the business exceeds the GST registration limit, the business must register for GST within 30 days.
Latest GST registration limit
The latest GST registration limit is Rs. 40 lakhs for businesses engaged in the supply of goods. However, there are certain exceptions to this limit. The GST registration limit is Rs. 20 lakhs for businesses located in special category states such as Arunachal Pradesh, Manipur, Mizoram, Nagaland, Sikkim, and Tripura. Additionally, businesses engaged in the supply of services are required to register for GST if their turnover exceeds Rs. 20 lakhs.
Section 24 of the CGST Act, 2017 Requires Mandatory GST Registration
The individuals mentioned below in the extract must register under Section 24(1) of the CGST Act 2017, even though their aggregate turnover is less than the stated threshold limit, and they are exempt from registration under Section 22(1).
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CGST Act, Section 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, –– (i) persons making any inter-State taxable supply; (ii) casual taxable persons making taxable supply; (iii) persons who are required to pay tax under reverse charge; (iv) person who are required to pay tax under sub-section (5) of section 9; (v) non-resident taxable persons making taxable supply; (vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act; (vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; (viii) Input Service Distributor, whether or not separately registered under this Act; (ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52; (x) every e-commerce operator; (xi) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and (xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council. |
Use our GST calculator to Calculate GST Amount to be paid before registering for GST.
GST Registration With Vakilsearch
Hence, we can conclude that GST registration: https://reg.gst.gov.in/registration/ becomes mandatory once a goods or service provider crosses the registration threshold limit or if he falls under any one of the categories of taxpayers mentioned under Section 24 of the CGST Act.
GST enrollment is no easy tax and requires professional expertise to ensure that the benefits of the latest indirect taxation regime are bestowed on registrants. This is why we advise you to engage the services of the GST specialists here at Vakilsearch to ensure hassle-free, speedy, and affordable GST enrollment.
In conclusion, the latest GST registration limit for businesses engaged in the supply of goods is Rs. 40 lakhs. Businesses engaged in the supply of services are required to register for GST if their turnover exceeds Rs. 20 lakhs. Voluntary registration for GST is also available for businesses whose turnover is below the GST registration limit. GST registration offers several benefits to businesses, such as compliance, input tax credit, and competitive advantage. The process of GST registration is simple and can be done online on the GST portal.
