New Threshold limit for GST Registration

By | January 17, 2019
(Last Updated On: January 17, 2019)

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 supplyTurnover or ReceiptsRegistration under GSTGST Composition scheme AvailabilityRate of tax for composition scheme
GoodsUp to 40 Lakhs
More than 40 but up to 1.5 crore1% of the turnover ( 0.5% CGST and 0.5% SGST)
More than 1.5 crore
Restaurant ServicesUp to 20 Lakhs
More than 20 Lakhs but up to 1.5 crore5% of the turnover ( 2.5% CGST and 2.5% SGST)
More than 1.5 crore
Other servicesUp to 20 Lakhs
More than 20 Lakhs but up to 50 Lakhs6% of the turnover ( 3% CGST and 3% SGST)
More than 50 Lakhs

Refer GST Registration : Free Study Material

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About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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