In India, GST registration is mandatory if your aggregate annual turnover exceeds ₹40 lakh for goods (₹20 lakh for special category states) or ₹20 lakh for service providers (₹10 lakh in special category states). The threshold applies to the aggregate turnover, including exempt supplies, across the PAN, starting from the financial year in which the limit is exceeded.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
If you have exceeded the threshold you must register for GST. You reach the GST turnover threshold if either: your current GST turnover – your turnover for the current month and the previous 11 months – totals $75,000 or more ($150,000 or more for non-profit organisations)
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
The aggregate turnover in GST is calculated by summing the value of activities conducted by all entities under the concerned person across India. This comprehensive approach ensures that the total turnover reflects all business operations, making it crucial for determining GST registration eligibility.
While filing ITR, the GSTIN has to be mentioned in the relevant section of the form. This is important as it helps the government to cross-verify the financial transactions reported in the GST returns and the income tax returns. It also helps to identify any discrepancies or mismatches in the reported figures.
Filing of Form GSTR-1 is mandatory for all normal (including SEZ Unit & SEZ developer) and casual taxpayers, even if there is no business activity in any particular tax period. So, for such tax period(s), the return can be filed as NIL (if all conditions for filing Nil return are satisfied).
Businesses dealing in goods are exempt from GST if their annual aggregate turnover is below INR 40 lakhs. For businesses in hilly and northeastern states, this threshold is reduced to INR 20 lakhs to address regional challenges. Service providers are exempt from GST if their turnover is under INR 20 lakhs annually.
$75,000 Threshold for Businesses
Even if you don't hit this figure yet, it's essential to monitor your revenue closely. The ATO requires registration if you either: Have a current GST turnover of $75,000 or more. Expect your turnover to reach $75,000 in the next 12 months.
You must register for GST: when your business or enterprise has a GST turnover (gross income from all businesses minus GST) of $75,000 or more (the GST threshold) – to find out how this is calculated see Working out your GST turnover.
A taxpayer must get a tax audit done if their business's sales, turnover, or gross receipts are over ₹1 crore, or if their profession's earnings exceed ₹50 lakh in a financial year. There are other situations where a tax audit might also be required.
What is the GST exemption limit? The GST exemption limit is the annual turnover below which a business does not need to register for GST. In most parts of India, the limit is Rs. 40 lakh for goods businesses and ₹20 lakh for service providers, with lower limits in special category states.
Registration under GST is mandatory for all businesses whose annual turnover exceeds Rs 40 lakhs in a financial year. This threshold is Rs 20 lakhs for special category states such as Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
Composition taxpayers can file Annual Return in Form GSTR-9A. Annual Return is not required to be filed by casual taxpayer / Non Resident taxpayer / ISD/ OIDAR Service Providers.
GST Exemption Limit
Under the Goods and Services Tax (GST) regime in India, businesses whose annual revenue exceeds specific thresholds are required to register and pay GST. Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services.
According to Notification No. 10/2019, any business engaged exclusively in the supply of goods must register for GST if the annual turnover exceeds ₹40 lakhs.
Penalty on Missing the GST Due Date:
The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.
When to register for GST. You must register for GST as soon as you think you'll earn more than $60,000 in 12 months – whether you're a sole trader, a contractor, in partnership or a company. You may be charged penalties if you don't register when you need to.
Generally, you are not eligible for the GST/HST credit if at the end of the month before and at the beginning of the month in which the CRA makes a quarterly payment, any of the following apply: You are not a resident of Canada for income tax purposes.
Certain government services and small businesses below the GST registration threshold also qualify for exemption. It's important to note that exempt supplies differ from non-GST supplies. Exempt supplies, like healthcare or education services, are part of the GST system but are not taxed.
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
GST Turnover Limit for Goods Suppliers
If you are supplying goods only, then in normal states the gst threshold limit for registration is ₹ 40 lakh per year. In special category states the limit is typically ₹ 20 lakh.