Compulsory Registration Requirement in GST

Registration Limit

FOR GOODS

If Aggregate Turnover is greater than  20 lacs   40 lacs or likely to exceed 20 lacs   40 lacs , then Compulsory Registration (Amendment from 01.04.2019)

(Limit is 10 lacs 20 lacs for North Eastern States) (Amendment from 01.02.2019)

FOR SERVICES

If Aggregate Turnover is greater than 20 lacs or likely to exceed 20 lacs, then Compulsory Registration

(Limit is 10 lacs  for North Eastern States)

Aggregate turnover includes all types of Sales

like

1. Taxable Sales
2. Exempt Sales
3. Export Sales
4. Interstate Sales
5. Sales by Agent of Principal

6. (Amount of taxes not to be included)

Exceptions

• For example, if a person exclusive deals with supply of exempt goods or services, even if his turnover more than Rs.20 lakhs, registration is not compulsory.
• Further, in case a person exclusively deals with supply of goods or services which is covered under RCM(e.g Advocate, lawyer etc) even if turnover is 10 crores, they are not required to obtain registration.

Changes Made in GST Council Meeting 6 Oct 2017

Registration Limit in GST is 40 lacs /20 lacs for Both Local and Interstate Sales

Earlier,

If a Person has turnover upto 40 lacs /20 lacs, they are not required to take registration

However if person is making interstate sales of even 1 Rupee, Compulsory Registration Required

Now,

If turnover is upto 40 lacs /20 lacs of Local + Interstate combined, then Registration Not Required

NO LIMIT  OF 40 LACS /20 LACS IN FOLLOWING CASES

NO LIMIT  OF 40 LACS /20 LACS IN FOLLOWING CASES

However Compulsory Registration Required for MAKING

1. Interstate Sales
2. Supplying goods on behalf of Other Persons
3. Casual Taxable Person**
4. Non-resident taxable persons
5. If liable to deduct TDS in GST
6. If liable to deduct TCS in GST
7. Input Service Distributor
8. 8.Making Sale on Behalf of other person (Franchise/Agent)
9. Reverse Charge
10. E-Commerce Companies
11. Online Database Service Provider from Outside India into India
12. Others as may be Notified

**Normally  Casual Taxable person  is required to obtain a Registration Certificate. However government has given exemption

    If following conditions are satisfied

1. Person is dealing with Interstate Supplies of Handicraft good.
2. Turnover is not more than 20 lakh