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:
- Jammu and Kashmir
- Ladakh
- Assam
- Kerala
- Chhattisgarh
- Jharkhand
- Delhi
- Bihar
- Maharashtra
- Andhra Pradesh
- Gujarat
- Haryana
- Goa
- Punjab
- Uttar Pradesh
- Himachal Pradesh
- Karnataka
- Madhya Pradesh
- Odisha
- Rajasthan
- Tamil Nadu
- West Bengal
- Lakshadweep
- Dadra and Nagar Haveli
- Daman and Diu,
- Andaman and Nicobar Islands
- Chandigarh
States Whose Threshold Limit for Supply of Goods is ₹ 20 lakh:
- Arunachal Pradesh
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Puducherry
- Sikkim
- Telangana
- Tripura
- 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. |