GST (Goods and Service Tax) has emerged as the biggest tax reorganization in India lately, extremely improving the comfort of doing business and growing the taxpayer base in India by fetching in millions of small businesses in India. By eliminating and including multiple taxes under a single umbrella, tax difficulties have been reduced while the tax base is increasing considerably. Under the new GST rule, all units involved in purchasing or selling goods or providing services or both are required to register for GST. Objects without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalized. Further, registration under GST is compulsory once an entity crosses the minimum brink of turnover while starting a new business that limit is expected to cross the recommended turnover for that business.

GST Turnover Limit             

There are numerous types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through e-Commerce operators are required to mandatorily to obtain GST registration irrespective of turnover limit, we help you in gaining the same, providing you more time to focus upon your business and less on tax and other stuff, the burden is totally ours. The GST revenue limit for regular GST registration for service providers and goods suppliers is provided below.

Service Providers: Any person or entity that provides service of more than Rs.20 lakhs in collective turnover annually is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been reduced and kept at Rs.10 lakhs.

Goods Suppliers: As per notification No.10/2019 any individual who is involved in the exclusive supplies of goods and the aggregate turnover for the same crosses Rs.40 lakhs in a year is required to obtain GST registration. To be entitled for Rs.40 lakhs turnover limit, the supplier must fulfill the below-mentioned conditions:

  • The supplier should not be indulged in providing any services.
  • The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand.
  • Should not be involved in the supply of ice cream, pan masala or tobacco.

If the above conditions are not fulfilled, the supplier of goods would be required to acquire GST registration when their turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

Special Category States: Under GST, the following are listed as special category states – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.

Aggregate Turnover Criteria: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).

Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be added together to arrive at the aggregate turnover. Our valued services provide all these features without any hassle to our consumers, reach out to us and avail our prime services to save time and focus more on growing your business.