GST Registration: A Closer Look at the Limit and its Impact on Businesses

 The Goods and Services Tax (GST) is an all-encompassing multi-step destination-based tax that is assessed on any and all value added. The GST’s key benefits include transforming India into a single market by eliminating interstate obstacles, taxing inequalities, check post delays, and challenges with transit permits. The use of illicit money and corruption are also reduced. Additionally, because firms may now use input tax credits in all States, the GST will save them money. The reduction in the overall tax burden on products and services will benefit the final consumer. Thus, GST Registration is beneficial for innumerable ways




What is GST Registration?

Any business organization that registers under the GST Law gets a special identification number (GSTIN) from the relevant tax authorities in order to collect taxes on behalf of the government and claim input tax credits for the taxes paid on his inward supplies. In short, GST Registration is the process to obtain the GSTIN and GST Registration certifi



cate so that business can operate as per the GST Rules and Regulations.

When does a Liability of registering under GST arises?

A “supplier” within the meaning of the term is generally required to register under GST, as is the case if their total annual revenue exceeds the applicable exemption threshold. However, the GST law includes a few kinds of suppliers who must register regardless of their revenue, meaning they are not eligible for the defined threshold exemption limit.

The Annual Turnover Limit for GST Registration

Every supplier must register with GST since it is a tax on the “supply event.” However, business owners with all-India aggregate sales below Rupees 40 Lakh (in case of exclusive supply of goods) (Rupees 20 lakh if business is in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand) and Rupees 20 lakhs (in case of supply of services or mixed supplies) (Rupees 10 lakh if company is in Manipur, Mizoram, Nagaland, and Tripura) need not register.

What is the Annual Turnover Limit as per the GST Rules and Regulations?


According to the GST law, “aggregate turnover” refers to the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both, and interstate supplies of persons having the same Permanent Account Number. This total value is calculated on an all-India basis but does not include Central tax, State tax, Union territory tax, Integrated tax, and cess.

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