Is it mandatory to register under GST if turnover less than Rs. Twenty Lakh?

Ask Legal Question (Free) Forums Taxation Laws Is it mandatory to register under GST if turnover less than Rs. Twenty Lakh?

Ask a New Legal Question (Free)

Tagged: 

This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 1 week, 4 days ago.

  • Author
    Posts
  • #2321

    Anonymous
    Guest

    Is it mandatory to register under GST tax if my turnover is less than Rs. 20,00,000 (twenty lakh) per year? GST started from 1 July and I am yet to register under but due to this I am avoiding any transactions so far (my business is of such a nature that there are not many transactions in a year).

  • #2324

    Section 22(1) of the Central Goods and Services Tax Act, 2017, lays down as under:

    “22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

    Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.”

    As per Explanation to Section 22, the expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution.

    As per this, the list of these special category states is Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

    Therefore, if you are in a state other than these special category states, and if your annual turnover is up to Rs. 20 lakh, then there is no need for registration for GST (Goods and Services Tax), since GST is exempted in such case.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate, holds Ph.D. in Constitutional Law, and is author of 3 law books. He is the founder of this law portal. Read more about him by clicking here. List of his articles. List of his Forum Replies. Email: info@tilakmarg.com [Note: Free legal questions should be asked only at this Forum, and NOT at this email address.]

You must be logged in to reply to this topic.