Any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, shall not be required to get registered under GST.

The new annual turnover threshold for GST registration will be effective from 1st April 2019 i.e. from FY 2019-2020 and onwards.

However, the above limit does not apply to following:

(a) persons required to take compulsory registration under section 24 of the said Act;

(b) persons engaged in making supplies of the goods, namely – Ice cream and other edible ice, whether or not containing cocoa, Pan Masala and Tobacco and manufactured tobacco substitutes

(c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand

(d) persons exercising option under the provisions of sub-section (3) of section 25, i.e. who have voluntarily obtained GST registration or such registered persons who intend to continue with their registration under the said Act

Download Notification No. 10/2019- Central tax dated 07.03.2019

Important Points to be noted

1. The new registration limit is only for goods and not for services

2. Inter-state supply of goods shall not be covered, since persons making inter-state supplies are mandatorily required to get registered as per Section 24

3. If the person has obtained registration because of Section 24, the new limit of Rs. 40 Lakhs shall not apply then.

4. The new limit is applicable from 1st April 2019, i.e. Financial Year 2019-20.

(Author can be reached at [email protected])

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June 2021