The federal Generation-Skipping Transfer (GST) tax exemption for 2026 is $15 million per individual ($30 million for married couples), following recent legislation that solidified higher limits, up from $13.99 million in 2025. This lifetime exemption allows taxpayers to transfer assets to grandchildren or skip generations without incurring the 40% GST tax.
Beginning January 1, 2026, the federal estate, gift, and generation-skipping transfer (GST) tax exemptions will be $15,000,000 per individual and $30,000,000 for married couples, indexed for inflation. Without this legislation, the exemption would have reverted to about $7,000,000 per person.
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.
GST exemption from registration
A person whose turnover falls below the threshold exemption limit—INR 40 lakhs for goods, INR 20 lakhs for services, and INR 20 lakhs (or INR 10 lakhs in special category states) for specified categories.
The total of lifetime gifts and the estate are eligible for a lifetime exemption, which is set at $13.99 million in 2025. The exemption amount is indexed for inflation, and was scheduled to be reduced by half after 2025. The higher exemption level was made permanent and slightly increased to $15 million in 2026 by P.L.
Generation-Skipping Transfer Tax Exemption: The GST exemption was also increased to $15 million per taxpayer for 2026, up from $13,990,000 in 2025. Annual Gift Tax Exclusion: The annual gift tax exclusion remains at $19,000 for 2026, the same amount applicable to 2025.
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.
GST Registration Threshold Limits (As of 2025)
₹40 lakhs: This is the threshold for GST registration in most Indian states. ₹20 lakhs: For special category states like Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Sikkim, Tripura, Nagaland, and Uttarakhand.
The GST/HST break includes certain qualifying goods, such as:
The GST exemption essentially allows the earmarking of transfers, made during lifetime or at death, that either skip a generation or are made in trust for multiple generations.
You have to start charging GST/HST on the supply that made you exceed $30,000. You exceed the $30,000 threshold 1 over the previous four (or fewer) consecutive calendar quarters (but not in a single calendar quarter).
That means your take home pay will be $55,383 per year, or $4,615.25 per month. Your average tax rate is 20.88% and your marginal tax rate is 32.5%.
Businesses with annual turnover below ₹40 lakh for goods and ₹20 lakh for services are eligible.
$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.
Small businesses in Australia who turn over less than $75,000 per year don't have to pay GST. If you're a registered not-for-profit, you also don't have to pay GST as long as your turnover is less than $150,000. If you run a taxi service or are an uber driver, for example, you must always pay GST, regardless of income.
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.
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
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.
The GST network issued another advisory on 7th June 2025, implementing the rule of time-barring of GST return filing beyond three years from the due date. By this update, taxpayers will not be able to file GST returns after three years from the due date of such return.
Here's what you need to know about the relevant threshold and how it affects your business or enterprise. The GST threshold for 2025 is $75,000 in annual GST turnover for most businesses. If your GST turnover exceeds this amount in any rolling 12-month period, you must register for GST within 21 days.
If your monthly output tax liability (on B2B supplies) is going to exceed ₹2.5 lakh, you shouldn't opt in; you can take the standard registration route. If you are among the persons notified under Section 25(6D) of the CGST Act who require enhanced verification, you may not be eligible for this simpler scheme.
You are eligible for a GST refund if you have paid excess tax, exported goods or services, made zero-rated supplies, claimed lower income than presumptive income, or have unutilised input tax credit.
Starting September 22, 2025, GST in India will be simplified to primarily two rates: 5% and 18%, with a special 40% rate on luxury and sin goods like tobacco and high-end vehicles. Many essentials, including certain medicines and foods, are now zero-rated, while several items see reduced rates.