In this article, attempt has been made to enlist various thresholds (as amended from time to time) as prescribed under the GST law for normal registration in different States/UTs, thresholds for Composition registration and a snapshot on Notification No. 2/2019- CT (Rate).
Normal GST Registration in case of Goods:
| Particulars | States/UTs | Relevant Sections, etc. | Limits | Period/Effective Date |
| Person engaged in Inter-State Supply | All States and UTs | Section 24 | No limit | W.E.F. 1st July, 2017 |
| Person engaged only in ‘Intra-State’ Supply of only goods except of following tariff items:
i. 2105 00 00* ii. 2106 90 20* iii. 24* |
All States and UTs except:
1. 6 North Eastern States (i.e. except Assam); 2. Uttarakhand; 3. Telangana; 4. Puducherry |
Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate) | 40 lacs | W.E.F. 1st April, 2019 |
| Person engaged only in ‘Intra-State’ Supply of only goods | 1. 6 North Eastern States;
2. Uttarakhand; 3. Telangana 4. Puducherry |
Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate) | 20 lacs | W.E.F. 1st April, 2019 |
| Person engaged in supply of following Tariff items:
i. 2105 00 00* ii. 2106 90 20* iii. 24* |
Any State | Section 22(1) | 20 lacs/10 lacs as the case may be | W.E.F. 1st July, 2017 |
| Person engaged only in ‘Intra-State’ Supply of only goods | Assam | Section 22(1) | 10 lacs | 1st July, 2017 till 31st March, 2019 |
| 40 lacs | W.E.F. 1st April, 2019 | |||
| Person engaged only in ‘Intra-State’ Supply of only goods | All States and UTs except:
1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim |
Section 22(1) | 20 lacs | 1st July, 2017 till 31st March, 2019 |
| Person engaged only in ‘Intra-State’ Supply of only goods | 1. 7 North Eastern States;
2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim |
Section 22(1) | 10 lacs | 1st July, 2017 till 31st March, 2019 |
Normal GST Registration in case of Services:
| Particulars | States/UTs | Relevant Sections, etc. | Limits | Period/Effective Date |
| Person engaged in Intra or Inter State Supply of Services | All States or UTs except Manipur, Mizoram, Nagaland, Tripura | Section 22(1) | 20 lacs | W.E.F. 1st February, 2019 |
| Person engaged in Intra or Inter State Supply of Services | Manipur, Mizoram, Nagaland, Tripura | Section 22(1) | 10 lacs | W.E.F. 1st February, 2019 |
| Person engaged in Intra or Inter State Supply of Services | All States and UTs
except: 1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim |
Section 22(1), Section 23(2) r/w notification no. 10/2019- IT | 20 lacs | 13th October, 2017 till 31st January, 2019 |
| Person engaged in Intra or Inter State Supply of Services | 1. 7 North Eastern States;
2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim |
Section 22(1), Section 23(2) r/w notification no. 10/2019- IT | 10 lacs | 13th October, 2017 till 31st January, 2019 |
| Person engaged in ‘Inter-State’ Supply of Services | All States and UTs | Section 24 | No limit | 1st July, 2017 till 12th October, 2017 |
| Person engaged only in ‘Intra-State’ Supply of Services | All States and UTs except:
1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim |
Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate) | 20 lacs | 1st July, 2017 till 12th October, 2017 |
Composition GST Registration (Section 10 and rule 7):
| For all States and UTs “except 7 North Eastern States, Himachal Pradesh, Sikkim” | |||
| Category of Supplier | Limits | Period | Rate (% of the turnover in the State or UT) |
| Manufacturer except of following tariff items:
i. 2105 00 00* ii. 2106 90 20* iii. 24* |
75 lacs | 1st July 2017 till 12th October, 2017 | 2% |
| 1 Crore | 13th October, 2017 till 31st December, 2017 | 2% | |
| 1 Crore | 1st January 2018 till 31st March, 2019 | 1% | |
| Services mentioned in Clause (b) of Paragraph 6 of Schedule II | 75 lacs | 1st July 2017 till 12th October, 2017 | 5% |
| 1 Crore | 13th October, 2017 till 31st March, 2019 | 5% | |
| Any other Supplier | 75 lacs | 1st July 2017 till 12th October, 2017 | 1% |
| 1 Crore | 13th October, 2017 till 31st March, 2019 | 1% | |
–
| 7 North Eastern States, Himachal Pradesh, Sikkim | |||
| Manufacturer except of following tariff items:
i. 2105 00 00* ii. 2106 90 20* iii. 24* |
50 lacs | 1st July 2017 till 12th October, 2017 | 2% |
| 75 lacs | 13th October, 2017 till 31st December, 2017 | 2% | |
| 75 lacs | 1st January 2018 till 31st March, 2019 | 1% | |
| Services mentioned in Clause (b) of Paragraph 6 of Schedule II | 50 lacs | July 2017 till 12th October, 2017 | 5% |
| 75 lacs | 13th October, 2017 till 31st March, 2019 | 5% | |
| Any other Supplier | 50 lacs | 1st July 2017 till 12th October, 2017 | 1% |
| 75 lacs | 13th October, 2017 till 31st March, 2019 | 1% | |
–
| For all States and UTs “except 6 North Eastern States (i.e. Except Assam), Uttarakhand, Sikkim” | |||
| Category of Supplier | Limits | Effective Date | Rate (% of the turnover in the State or
UT) |
| Manufacturer except of following tariff items:
i. 2105 00 00* ii. 2106 90 20* iii. 24* |
1.5 Crore | W.E.F. 1st April, 2019 | 1% |
| Services mentioned in Clause (b) of Paragraph 6 of Schedule II | 1.5 Crore | W.E.F. 1st April, 2019 | 5% |
| Any other Supplier | 1.5 Crore | W.E.F. 1st April, 2019 | 1% |
–
| 6 North Eastern States (i.e. Except Assam), Uttarakhand, Sikkim | |||
| Category of Supplier | Limits | Period | Rate (% of the turnover in the State or UT) |
| Manufacturer except of following tariff items:
i. 2105 00 00* ii. 2106 90 20* iii. 24* |
75 lacs | W.E.F. 1st April | 1% |
| Services mentioned in Clause (b) of Paragraph 6 of Schedule II | 75 lacs | W.E.F. 1st April | 5% |
| Any other Supplier | 75 lacs | W.E.F. 1st April | 1% |
Notes:
1. Normal rates are applicable when a composition supplier receives supplies on which reverse charge is applicable.
2. With effect from 1stFebruary, 2019, a proviso has been inserted in Section 10(1) of CGST Act which provides that a person who opts to pay tax under composition scheme can supply services of value not exceeding ten percent of turnover in a State or UT in the preceding financial year or five lakh rupees, whichever is higher. Following needs to be noted in this regard:
a. Rate of tax to be applied on such value of services is 1% or 5% as the case may be i.e. depending on the rate on which tax is paid for composition supplies.
b. For calculating the value of services, services supplied under Clause (b) of Paragraph 6 of Schedule II should not be considered.
3. *Tariff Items:
a. *2105 00 00: Ice cream and other edible ice, whether or not containing cocoa.
b. *2106 90 20: Pan masala
c. *24: All goods, i.e. Tobacco and manufactured tobacco substitutes.
Notification No. 2/2019- CT (Rate) dated 7th March, 2019:
1. This notification is to be effective from 1stApril, 2019.
2. This notification is issued for intra-state supplierhaving major value of supplies as ‘Services’;
3. Only persons not eligible for ‘Section 10’ and having aggregate turnover of less than 50 lacs in preceding financial year can opt for this notification. Illustratively, a person having turnover of 40 lacs in which 30 lacs relates to Services.
4. Reduced rate of 6% is applicable for first 50 lacs of Aggregate turnover.
Regards,
Shivashish Karnani
Reach out to me at ca.shivashish@gmail.com/+91-9818472772
The information provided is not a substitute for legal and other professional advice. This is only for academic discussions.
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