Seeks to exempt persons making inter-State supplies of taxable services from registration under section 23(2)- Supplier of services having turnover upto 20 lacs exempted for obtaining registration irre­spective of inter state supplies.

Exemption from obtaining compulsory registration U/s 24 of CGST Act, 2017 in case of Inter State Supply of Services

Central Government vide Notification No. 10/2017 – Integrated Tax dated 13th October,2017 has exempted the persons making inter-State supplies of taxable services and having an aggregate turnover not exceeding an amount of Rs. 20 lakhs in a financial year from obtaining registration.

However, for the following States aggregate turnover limit should not exceed Rs. 10 lakhs for availing exemption from registration for the States specified in Article 279A (4) (g) of the Constitution:

Arunachal Pradesh

Assam

Manipur

Meghalaya

Mizoram

Nagaland

Sikkim

Tripura

Himachal Pradesh

Uttarakhand

It may be noted that State of Jammu & Kashmir has opted for Rs. 20 Lacs threshold limit for exemption.

Source- ICAI

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Notification No. 10/2017- Integrated Tax

New Delhi, the 13th October, 2017

G.S.R. 1260(E).- In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act:

Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.

[F. No.349/74/2017-GST (Pt.)]

(Dr. Sreeparvathy S.L.)

Under Secretary to the Government of India

More Under Goods and Services Tax

16 Comments

  1. Anil says:

    Please inform if turnover is less than 20 lacs n supply n service n same state only. GST is required or if registered to open bank account then what to do ?

  2. Sonal Baberwal says:

    Got GST charged tax on inter state service & paid tax till exemption limit introduced,thraftr stopped charging & nil tax returns submtd till 31.03.18
    Now want to continue GST registration with sure that service provided will be much bellow exemption limit.Am I suppose to charge tax on my service bill & pay gvt. Or I can continue with Zero Tax Charged bill for service provided ( gst registration is to be continue )

  3. S C Jain says:

    Sir,
    I am a consultant to a company (Interstate). I took GST registration because earlier for interstate supply, there was no exemption. Now that 20 lax is exempt.
    Pl advise me how to surrender the register. Do i have to charge GST in future invoices

  4. A srinivas says:

    I’m a mutual fund distributor. registered under GST. My turnover was below 20 Lakhs. In the october notification IGST for service providers below 20 lakhs gets exempted.
    i would like to know the procedure to cancel my registration.

  5. Pankaj Mehndiratta says:

    I applied for gst registration when interstate sale os service limit was nil. My annual turnover is 8 lacs. So i applied and got registration. Now the limit is 20 lacs and reverse charge is also not there. My clients dont want to pay gst. Should i surrender my gst registration. Pls help…

    1. caravivarshney.atgmail says:

      as per our best knowledge –
      only interstate supply of service up to 20 lacs need not to take registration, if goods involve we have to take registration, hope you will get your answer now

  6. Pankaj Mehndiratta says:

    I have Annual turnover of rs. 8 lakhs interstate. I aapllied for gst registration in september. However in oct the threshhold limit for gst registration raised to 20 lacs. Should i now surrender my registration. My client dont want to pay gst as now there is no reverse charge too.

  7. Sachin says:

    Hello,

    After recent declaration in GST registration for e-commerce business. Business with annual turnover less then 20 lac do not need to register for GST. My query is If any business has already registered for GST but has not reached to the thershold of 20 lac. What should he do? Should he discontinue the filing or close / cancel the GST registration. Thanks

    1. Raj Kumar says:

      Thank very much for the guidance. I want to know that even if my turnover includes export of services below 20 lakhs, am I exempt from registration?, Please guide.

  8. Raj Kumar says:

    Dear Sir,
    Under the GST Law, export of goods or services has been treated as: inter-State supply and covered under the IGST Act.
    My turnover of supply of services is much below 20 lacs including export and inland supply. Do I need to register in the light of new set of rules announced on 06.10.17 permitting inter-state supply for calculating threshold limit of 20 lacs? Please clarfy.
    Thanks

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