GST, GST Registration

ALL ABOUT GST REGISTRATION EXEMPTION

ALL ABOUT GST REGISTRATION EXEMPTION

  • A trader dealing only in exempted goods or where his aggregate turnover is below Rs 20 lakh in the financial year, but not engaged in inter-state supplies, is not required to register under GST.
  • As per Section 2(6) – ā€œaggregate turnoverā€ means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
  • Rs 20 lakh registration limit is only for intra-state traders.
  • Traders, thus, will not be able to avail of threshold exemption of Rs 20 lakh turnover, if they have inter-state supplies.
  • They have to register if they have inter-state Rs 20 lakh Threshold exemption is only for traders who are trading within the state.
  • But once registered, the traders will have to pay taxes on all supplies, even if turnover is less than Rs 20 lakh.
  • Even if there were no transactions in a certain month, return would have to be filed once registration was done.

As per section 22 Registration of CGST Act

  1. (1) 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 twenty lakh rupees:

Provided 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 ten lakh rupees.

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

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