Any Manufacturer/Service Provider/Trader whose annual turnover is below Rs.20 lakh need not to pay any GST and need not register. A person would be liable to be registered under GST if he is making a taxable supply of goods or services or both under same PAN in the entire country exceeds the threshold limit as provided in GST. Threshold limit in GST is Rs.10 Lakh for persons in specified states and Rs.20 Lakh is for other states. Specified States means North East States that includes Sikkim, Manipur, Tripura, Arunachal Pradesh, Assam, Mizoram, Uttarakhand, Himachal Pradesh,Nagaland and Meghalay.
There is no threshold limit for persons having inter-state taxable supplies.
A person having only exempted supplies, will not be required to register under GST irrespective of any sales.
However, if a supplier making taxable Intra-State Supply and also makes an exempted Inter-State Supply, then such supplier would be eligible for the benefit of threshold limit.
Any person can get registered himself voluntarily under GST though he is not liable to get registred under GST.
Any person who is going to be registered under GST, must have PAN as allotted by Income Tax Department.
Following persons are compulsorily required to get registration under GST:-
- in case of and taxable supply to other state irrespective of any sales.
- non-resident taxable person.
- any casual taxable person.
- persons who are deduct the tax under section 37.
- person who supply the goods or services on behalf of other taxable person.
- person who is required to pay tax under reverse charge.
- input service distributor.
- persons who supply goods and/or services through electronic commerce operator other than branded services.
- any person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.
Examples:- a person having business place in one State.
- Mr. A having the office in Delhi, supplies the taxable goods first time to Karnal in Haryana, he is liable to be registered under GST. In this case no benefit of threshold limit would be allowed.
- The gross taxable turnover of Mr. A is 15 Lakh in Delhi State and he supplies the taxable goods for Rs.10000/= in Maharshtra. In this case also he can not avail the benefit of threshold.
- Mr. A has made taxable sales in Delhi for Rs.15 Lakh and also made supply of Rs.2 Lakh of exempted items in Punjab. He can avail the benefit of threshold limit of Rs.20 Lakh since his total supplies are for Rs.17 Lakh.
- Mr. A has made local taxable supplies for Rs.18 Lakh and he has made a supply to Haryana of exempted items for Rs.6 Lakh. In this case, he is liable to be registered under GST since he has exceeded the threshold limit of Rs.20 Lakh.
Examples:- a person having business places in multiple States.
Mr. X has office in Delhi and Haryana. The office of Delhi makes only Intra-State sales or local sales and the office of Haryana makes Inter-state sales. His liability to get registered himself under GST under different scenarios as under:-
- His Delhi office has made supplies of exempted items in Delhi for Rs.12 Lakh and Haryana office has made Inter-State supplies of exempted items for Rs.6 Lakh. He will not be liable for registration under GST since he is exclusively in the business of supplies of exempted items.
- His Delhi office has made a supply of taxable goods in Delhi for Rs.10 Lakh and his Haryana office has made and exempted Inter-State sales for Rs.6 Lakhs. He will not be required to be registered under GST since his gross turnover in India is less than threshold limit i.e Rs.20 Lakh.
- His Delhi office has made local sale of taxable goods for Rs.7 Lakh and exempted sale for Rs.8 Lakh. His Haryana office has made Inter-State sales of exempted items for Rs.10 Lakh. In this case, his gross turnover in India under common PAN is Rs.25 Lakh. He is liable to register under GST in Delhi because he has made taxable sales in Delhi only and Haryana office has no taxable sales. If any time any taxable sale is made from Haryana office (Intra-State or Inter – State), he will have to registered under GST in Haryana also.
- He has made local sales of exempted items in Delhi for Rs.10 Lakh. His Haryana office has made Inter-State taxable sales for Rs.2 Lakh. He has to get registered under GST in Haryana because he is having Inter-State taxable sales in Haryana only.
- His Delhi office has made taxable supply in Delhi for Rs.6 Lakh and his Haryana Office has made a taxable Inter-State sales for Rs.3 Lakh. In this case, he is required to be registered under GST in Haryana. The benefit of threshold limit will be available in Delhi only. Suppose his gross turnover of Delhi and Haryana exceeds Rs.20 Lakh, he is supposed to be get registration under GST in Delhi also.