THRESHOLD LIMIT FOR REGISTRATION UNDER ‘GST’
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 21-2-2019
Registration
Section 22 of the Central Goods and Services Tax Act, 2017 ('Act' for short) provides for registration by every supplier under the Act. Section 22(1) of the Act that every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs.20 lakhs. The proviso to section 22(1) provides that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs.10 lakhs.
The Goods and Services Tax (Amendment) Act, 2018 inserted second proviso to Section 22(1). The second proviso provides that the Government may, at the r
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e turnover also exclude the value of inward supplies on which tax is payable by a person on reverse charge basis.
Person
The aggregate turnover of the following persons exceeding the threshold limit is liable to registration as supplier under GST Act-
* an individual;
* a Hindu Undivided Family;
* a company;
* a firm;
* a Limited Liability Partnership;
* an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
* any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013
* any body corporate incorporated by or under the laws of a country outside India;
* a co-operative society registered under any law relating to co-operative societies;
* a local authority;
* Central Government or a State Government;
* society as defined under the Societies Registration Act, 1860
* trust; and
* every artificia
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itories were asked to select their option as to the threshold limit they want to raise the threshold limit or maintain status quo. It was one time measure of exercising the option. The increased threshold is for the benefit of micro, small and medium enterprises.
Effective date
The revised threshold limit as adopted by the States and the Union Territories will take effect from 01.04.2019.
Option of States
The following States/UTs opted to increase the threshold limit to ₹ 40 lakhs from ₹ 20 lakhs-
* Chhatisgarh;
* Jharkhland;
* Delhi;
* Bihar;
* Maharashtra;
* Andhra Pradesh;
* Gujarat;
* Haryana;
* Goa;
* Punjab;
* Uttar Pradesh;
* Jammu & Kashmir;
* Assam;
* Himachal Pradesh;
* Karnataka;
* Madhya Pradesh;
* Odisha;
* Rajasthan;
* Tamil Nadu; and
* West Bengal.
The following States/UTs opted to increase the threshold limit to ₹ 20 lakhs from ₹ 10 lakhs-
* Puducherry;
* Meghalaya;
* Mizoram;
* Tripura;
* Ma
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