The ₹1.5 crore GST limit refers to the maximum annual aggregate turnover allowed for businesses (manufacturers and traders) to opt for the Composition Scheme in most Indian states. It simplifies compliance by allowing a lower, fixed tax rate (1% to 6% depending on business type) instead of regular GST rates, but does not allow Input Tax Credit (ITC).
The GST limit for composition schemes in India is Rs. 1.5 crore turnover per annum. Composition schemes are voluntary schemes available for small businesses with annual turnovers up to Rs. 1.5 crore who can opt for fixed tax rates instead of regular GST rates.
The GST registration turnover limit is ₹40 lakhs for goods, ₹20 lakhs for services, and ₹10 lakhs for special category states.
How to calculate GST?
Yes, HSN code is mandatory in GSTR 9 under certain conditions. From the financial year 2021-22 onwards, it's mandatory to report the HSN Summary for Outward Supplies (your sales) in Table 17 of GSTR-9. Taxpayers with a turnover above Rs. 5 crores must report HSN codes at a 6-digit level.
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.
Section 44AD is a presumptive taxation scheme that allows taxpayers to pay tax on a presumed percentage of their annual turnover given that the annual turnover is less than Rs. 2 crores (Rs. 3 crores if 95% of receipts are through online modes).
You could get up to: $533 if you are a single individual. $698 if you are married or have a common-law partner. $184 for each child under the age of 19.
Rule 86B: Businesses with monthly taxable supplies over Rs. 50 lakh must pay 1% GST liability in cash. The Government introduced Rule 86B in the CGST Rules via Notification No. 94/2020 – Central Tax dated 22nd December 2020, which became effective from 1st January 2021.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
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.
In the 56th GST Council meeting, the government approved a simplified structure (now implemented), reducing the old multi-tier system (0%, 5%, 12%, 18%, and 28%) to just two main slabs—5% and 18%—plus a 40% “sin & luxury” slab for select items.
Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Businesses with annual revenues below these limits are not mandated to register for GST; however, they may opt to do so voluntarily.
In India, the 30% income tax rate generally applies to individuals earning above ₹24 Lakhs (under the old regime/default for some) or ₹15 Lakhs (under the new optional regime for FY 2025-26) and to firms (as a flat rate), while certain income types like lottery winnings, online gaming, and virtual digital assets (like crypto) are taxed at a flat 30% for everyone, regardless of total income.
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
GST law also provides for grant of provisional refund of 90% of the total refund claim, in case the claim relates for refund arising on account of zero rated supplies. The provisional refund would be paid within 7 days after giving the acknowledgement.
You are eligible for this credit if you are a resident of Canada for income tax purposes at the end of the month before and at the beginning of the month in which the CRA makes a payment (read When your GST/HST credit is paid). In the month before the CRA makes a quarterly payment, you must be at least 19 years old.
The New GST Rate Structure
Surcharge and Cess:
Surcharge under the New Regime (for individuals below 60 years): Income over ₹50 lakh but under ₹1 crore: 10% of income tax payable. Income over ₹1 crore but under ₹2 crore: 15% of income tax payable. Income over ₹2 crore but under ₹5 crore: 25% of income tax payable.
As recently as January 2022, the limit is Rs. 1 crore for businesses and Rs. 50 lakhs for professionals.
Agricultural business is also known as tax-free business in India. According to Section 10(1) of the Income Tax Act of 1961, agricultural income is exempt from taxation.
The GST Amnesty Scheme under Section 128A grants total waiver of pending interest and penalty amount if the tax dispute amount is paid by an eligible taxpayer on or before March 31, 2025.