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GST EXMEPTION LIMIT: -

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23-Dec-2014
Eduman

GST EXMEPTION LIMIT: -

The GST exemption limit or threshold limit is the Act that specifies the businesses with an annual turnover of up to Rs. 40 lakhs (Rs. 20 lakhs for special category states) are not required to register under GST. The main GST-free items are exports, health, food, education, international travel and certain charitable activities. A small range of items are "input taxed". This means that the supplier does not charge GST and cannot claim credits for the GST on its own acquisitions.Businesses and individuals who are supplying goods can claim GST exemption if their aggregate turnover is less than INR 40 lakhs in a financial year.

For the hilly and north-eastern States of India, the limit has been revised to INR 20 lakhs. GST Registration Limit for Goods a business entity whose annual turnover exceeds Rs.40 lakh for a supplier of goods is required to register under the Goods and Services Tax. For some North Eastern and hilly states designated as special category states & the state of Telangana, the ceiling is fixed at Rs. 20 lakhs as per the GST Registration.

States that have Threshold Limit for Supply of Goods is ₹ 40 lakh:

  1. Jammu and Kashmir
  2. Ladakh
  3. Assam
  4. Kerala
  5. Chhattisgarh
  6. Jharkhand
  7. Delhi
  8. Bihar
  9. Maharashtra
  10. Andhra Pradesh
  11. Gujarat
  12. Haryana
  13. Goa
  14. Punjab
  15. Uttar Pradesh
  16. Himachal Pradesh
  17. Karnataka
  18. Madhya Pradesh
  19. Odisha
  20. Rajasthan
  21. Tamil Nadu
  22. West Bengal
  23. Lakshadweep
  24. Dadra and Nagar Haveli
  25. Daman and Diu, 
  26. Andaman and Nicobar Islands
  27. Chandigarh 

States Whose Threshold Limit for Supply of Goods is ₹ 20 lakh:

  1. Arunachal Pradesh
  2. Manipur
  3. Meghalaya
  4. Mizoram
  5. Nagaland
  6. Puducherry
  7. Sikkim
  8. Telangana
  9. Tripura
  10. Uttarakhand

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GST Registration limit for goods: -

Under the GST regime, the registration limit for goods suppliers is determined based on their turnover. The GST Act specifies that businesses with an annual turnover of up to Rs. 40 lakhs (Rs. 20 lakhs for special category states) are not required to register under GST. This limit is known as the GST exemption limit or the threshold limit.

If a business’s annual turnover exceeds the threshold limit, it becomes mandatory for the business to obtain GST registration. This means that the business has to collect GST from its customers and remit it to the government. It also means that the business can claim an input tax credit for the tax paid on its purchases.

However, businesses that supply goods through e-commerce platforms are subject to different rules. If a business sells goods through an e-commerce operator, it has to obtain GST registration regardless of its turnover. This is because the e-commerce operator is responsible for collecting and remitting GST on behalf of the seller.

List of GST Exemptions

List of GST Exemption on Goods

Types of goods

Examples

live animals

Asses, cows, sheep, goats, poultry etc.

Fish

Fresh or frozen fish

Meat

Fresh or frozen meat of cows, sheep, goats, horses etc.

Fruits

Bananas, grapes, apples etc.

Dry fruits

Cashew nuts, walnuts

Tea, coffee and spices

Coffee beans, tea leaves, turmeric, ginger etc.

Water

Mineral water, tender cocoanut water

Sugar

Jaggery, sugar

Seeds

Flower seeds, oil seeds, cereal husks, etc.

Fabrics

Raw silk, silkworm cocoon, khadi, etc.

Newsprints

Judicial stamp paper, envelopes, rupee notes, etc.

Ornaments

Plastic and garbage bangles

Waste

Sewage sludge, municipal waste, etc.

pottery

Earthen pots, clay lamps, etc.

 

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