GST REGISTRATION

Aggregate turnover threshold limit for GST registration under goods and service act

In a financial year, if aggregate turnover exceeds Rs.20 lakhs for the business entities supplies goods or service or both in the State or Union Territory requires to register under GST Act 2017.

According to the subsection 1 of section 22 of GST ACT, For any business entity doing exclusive supply of goods, the 20 lakhs threshold limit for aggregate turnover can be extended up to Rs.40/- lakhs at the request of the State and the recommendation of GST Council.

By the virtue of Notification No.10/2019 dated 07.03.2019, the GST Council notifies that exemption from registration for any person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakhs.

According to the Notification No.10/2019 dated 07.03.2019, Following persons have to register under GST compulsorily, although they exclusively supply goods with the aggregate turnover not exceeding Rs.40 lakhs.

1. persons required to take compulsory registration under section 24 of the said Act;
2. persons engaged in making supplies of the goods, the description of goods such as Ice cream and other edible ice, whether or not containing cocoa, Pan masala, Tobacco and manufactured tobacco substitutes.
3. persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and
4. persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act.

For special category States such as Manipur, Mizoram, Nagaland and Tripura, the business entities exceeds aggregate turnover of Rs.10 lakhs requires registration under GST Act.