Know whether exemption limit for GST is applicable for you or not
Exemption limit for GST : The tax reform that our mighty nation is going through will surely change the course of our economy and will facilitate speedier economic growth. The foundation of Goods and Service Tax was laid upon the aim to fight black money and to bring more and more wealth under the purview of white money. Since the GST Act is new hence it is obvious that most of you out there won’t be aware of the rules and regulations about this indirect tax. There have been a lot of confusions in the minds of businessmen as to whether they are required to get themselves registered for GST or not. If they have to get themselves registered then what are the criteria for getting registered for GST, i.e., the exemption limit?
Schedule V of GST Act clearly mentions “Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds twenty lakhs rupees:
PROVIDED that where such person makes taxable supplies of goods and/or services from any of the States specified in sub-clause (g) of clause (4) of Article 279A of the Constitution, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakhs rupees.”
This is the provision for States other than North eastern States. For North Eastern State, the Schedule V of GST Act mentions that “Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds ten lakhs rupees.”
Also see : Latest GST News
Thus from the above statement, it is clear that the exemption limit for GST has been set at Rs. 20 lakhs by the GST council. For the North Eastern States, this limit has been reduced to Rs. 10 lakhs.
It is to be noted that the conditions for exemption limit also revolves around the concept of Place of Supply. The Act mentions that if a person is engaging in inter-state supply of goods and/ or services then he is liable for compulsory registration in GST. Thus, this particular person won’t be able to enjoy the benefits of “exemption limit”. Even if his/ her turnover or revenue is below the exemption limit of 20 lakhs/ 10 lakhs, he is required to get himself registered for GST. In order to get a clearer picture of the rules and regulations governing exemption limit, you can click on the link mentioned below and can read what GST Act has to say regarding the exemption limit.
We hope that the concept of exemption limit has been quite clear after going through this article. Since the government is aiming for stricter implications of rules and regulations, hence it would be advisable for you to keep a track of your services or goods that you offer and the turnover that you have achieved.
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