Businesses whose revenue surpasses the threshold level of Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh, as the situation may be, must register as a regular taxable person under the Goods and Services Tax (GST). It's known as GST registration.

GST registration is required for certain businesses. It is a violation under GST to conduct business without first registering for GST, and hefty fines will be imposed.

GST registration typically takes 2-6 business days. 

Who is responsible for obtaining GST registration?

• Individuals who are already officially registered under the pre-GST law (i.e., Service Tax, Excise, VAT,  etc.)
• Businesses with a turnover of more than Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh, depending on the case

• Non-Resident taxable person / Casual taxable person
• Supplier's agents and input service distributors
• Someone who sells through an e-commerce aggregator
• Every online marketplace aggregator
• A person who provides an online database and information access or retrieval services to a person in India who is not a registered taxable person

Is GST Required under 20 lakhs?

Businesses or business owners with a turnover of more than Rs. 40 lakhs must register as a normal taxable person under the GST system, while those with a turnover of less than Rs. 10 lakhs must register as a special taxable person. If a person's total revenue reaches Rs. 20 lakh (in normal category states) or Rs. 10 lakh (for special category states) they must register for their GST.

The GST Exemption Limit for payment of goods and services tax (GST) has been increased to Rs 40 lakh by the GST Council. It was previously Rs. 20 lakh. In addition, the exemption limit for the north-eastern states has been raised to Rs 20 lakh from Rs 10 lakh previously.

A company whose annual gross revenue surpasses Rs 20 lakhs is required to register under the Goods and Services Tax. The maximum for North Eastern and hilly areas designated as special category states is Rs 10 lakhs. The CBIC announced an increase in the business threshold from Rs 20 lakhs to Rs 40 lakhs, which took effect on April 1, 2019.

This rise in the GST threshold turnover limits helps to simplify compliance. The states might choose to keep the current limitations or increase them.

GST  Registration Threshold Limit 

Normal Taxpayer 

Only under the first GST system announced by the government in July 2017, the threshold limit for goods suppliers was Rs. 20 lakhs. To be more specific, providers or dealers of commodities with an annual turnover of up to Rs 20 lakhs are exempted from the GST system. As a result, all suppliers and dealers of commodities with a threshold turnover of Rs 20 lakh or more are required to register for GST. The annual exemption threshold limit was increased from Rs. 20 lakhs to Rs. 40 lakhs during the 32nd GST Council meeting.

Furthermore, the Rs 40 lakh exemption barrier is not applicable to taxpayers who are:

Involved in the supply of goods business, such as:

• Ice cream and other ice-related edibles, whether or not they contain cocoa
• Tobacco products and tobacco alternatives
• Pan Masala

For the Special Category States

In the previous GST system, the threshold limit for northeastern and hilly states to register for GST was Rs. 10 lakhs.

States in the Special Category include:

Assam

Jammu and Kashmir

Meghalaya

Arunachal Pradesh 

Manipur

Sikkim

Tripura

Mizoram

Nagaland

Himachal Pradesh

Uttarakhand

According to the 32nd GST Council meeting, the state's threshold limit for goods supply has been raised from Rs. 10 lakhs to Rs. 20 lakhs. However, firms in the northeastern and hilly regions were given the choice of choosing between a GST limit of Rs. 40 lakhs or a GST exemption limit of Rs. 20 lakhs for providers of commodities.

GST Registration Limit For Services

According to the initial GST structure announced by the government in July 2017, the turnover ceiling for service suppliers was Rs. 20 lakhs, excluding special category states. However, the GST exemption limit for service providers, which was set at Rs. 20 lakhs at the 32nd GST Council Meeting, remains intact.

Normal Taxpayer

The exemption ceiling for service providers in hilly and northeastern states during the initial GST regime was Rs. 10 lakhs. However, as of the 32nd GST Council Meeting, the exemption level remains constant at Rs 10 lakhs.
 

What is the definition of Annual Aggregate Turnover?

According to the GST law, "aggregate turnover" refers to the total value of all taxable supplies (which excludes inward supplies on which a person pays tax on a reverse charge grounds), exempt supplies, exports of services or goods or both, and inter-state supplies of persons with the same Permanent Account Number, computed on an all-India basis but excluding State tax, Central tax, Union territory tax, Integrated tax, and cess.

Annual aggregate turnover is the total turnover calculated for the complete financial year from April to March of the following year. To put it another way, it's the total turnover estimated at a PAN level (all GSTINs combined) plus the following:

• Value of taxable sales
• Value of exempt sales
• Goods and services export
• Interstate supplies to a sister concern under the same PAN, or interstate stock transfers or supplies between different people under the same PAN

However, tax components like the State tax, Central tax, Union territory tax, Integrated Tax, and Cess are not included in the aforementioned figure. Furthermore, the taxable value eliminates items for which the person must pay tax under the reverse charge system. It's worth noting that reverse charge sales must continue to be included in total turnover as taxable supplies.

The Meaning of State Turnover

The notion of turnover in the state differs from that of aggregate turnover. It refers to the total value of all taxable and non-taxable goods. This includes exempt supplies and exports of goods or services made within a State by a taxable person, as well as inter-state supplies of products & services manufactured from the State by the said taxable person. However, it excludes taxes levied under the CGST Act, SGST Act, and IGST Act, as applicable.

Conclusion

Getting a GST Registration for your small-scale or large-scale businesses can sometimes be very difficult and a time-consuming process. Some of you might not be aware of the legalities and requirements so it is best to consult a legal advisor in this matter. Online Legal India’s team of industry professionals will help you throughout the process and make it easy for you to understand.