New Threshold limit for GST Registration
32nd GST Council Meeting on 10.01.2019 raised the threshold limit for GST Registration w.e.f 01.04.2019 . Notifications are yet to be issued.
GST Council has also raised the threshold limit for composition scheme from 1 crore to 1.5 crores from April 1st, 2019
GST Council has decided to raise the threshold limit from 20 lakhs to 40 lakhs for GST registration for suppliers of goods. Further, the limit has been raised from 10 lakhs to 20 Lakhs in case of north-eastern and hilly States. However, an option has been provided to States to opt for higher threshold limit, i.e., every State has the right to choose either higher threshold limit (i.e., 40 Lakhs) or to keep same threshold limit (i.e., 20 Lakhs).
Currently, as per GST Act, a supplier providing inter-State supplies is required to take mandatory registration under GST, irrespective of its turnover.
composition scheme is also introduced for service providers whose turnover is less than 50 Lakhs in preceding Financial Year.
Also, composition scheme is not available to dealers engaged in inter-State supplies of goods or services or both.
. A summarised table to know the threshold limit of registration, availability of composition scheme and rate of taxes has been provided below-
| Nature of supply | Turnover or Receipts | Registration under GST | GST Composition scheme Availability | Rate of tax for composition scheme |
| Goods | Up to 40 Lakhs | – | – | – |
| More than 40 but up to 1.5 crore | ✓ | ✓ | 1% of the turnover ( 0.5% CGST and 0.5% SGST) | |
| More than 1.5 crore | ✓ | – | – | |
| Restaurant Services | Up to 20 Lakhs | – | – | – |
| More than 20 Lakhs but up to 1.5 crore | ✓ | ✓ | 5% of the turnover ( 2.5% CGST and 2.5% SGST) | |
| More than 1.5 crore | ✓ | – | – | |
| Other services | Up to 20 Lakhs | – | – | – |
| More than 20 Lakhs but up to 50 Lakhs | ✓ | ✓ | 6% of the turnover ( 3% CGST and 3% SGST) | |
| More than 50 Lakhs | ✓ | – | – |
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