Hi Entrepreneurs!!
" GST registration limit has been increased up to 40 Lakhs."
One businessman quoted this statement and was relaxed about their compliance requirements.
The businessman is operating an e-commerce platform engaged in the interstate supply of services.
This article is trying to summarise the real GST registration limits.
If the aggregate turnover of a business exceeds the below-mentioned limits, then the business must be compulsorily registered under GST
1. For Service Providers who belongs to
a. Normal states of India = Rs 20 Lakhs
b. Special states of India = Rs 10 Lakhs
2. For Supplier of Goods who belongs to
a. Normal states of India = 40 Lakhs
b. Special states of India = 20 Lakhs
3. Exceptions of above
a. Kerala & Telangana For Goods & Services Both = 20 lakhs
b. J&K and Assam for Goods = 40 Lakhs, For service = 20 Lakhs
Notes:
Meaning
i. Special States: Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand
In short 7 sisters + J&K, Sikkim, Himachal, Uttarakhand together constitute special states for GST
ii. Normal States = All states other than Special Category States
However, certain category of business are required to compulsorily get registered under GST irrespective of their states or turnover
1. Inter state suppliers
2. Casual Taxable persons
3. Persons taxable under the reverse charge basis
4. Non-resident taxable persons
5. Persons required to deduct TDS under GST
6. Persons required to deduct TCS under GST
7. Input Service Distributors
8. Persons making a sale on behalf of someone else whether as an Agent or Principal.
9. Every E-commerce Operator who provides a platform to suppliers to make supply through it.
10. Suppliers who supply goods through E-commerce operator who is liable to collect tax at source.
11. Online Service Providers providing service from outside India to a non-registered person in India.
Conclusion: The e-commerce operators is a service provider and also engaged in interstate supply. Hence the operator is not eligible to take advantage of registration threshold prescribed by law.
Disclaimer : This is merely an informational article and not to be construed as legal advice.
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