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).
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.
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