GST REGISTRATION LIMIT: -

In India, businesses with an annual turnover of more than Rs. 40 lakhsare required to register for GST. The GST Council raised the minimum threshold for GST registration from 20 lakhs to 40 lakhs in consideration of MSMEs’ concerns, thereby relieving many small businesses from paying GST.However, certain businesses, such as those engaged in e-commerce or selling goods across state borders, are required to register for GST regardless of their turnover.

Activities that are eligible for taxation under GST: -

• Supply of goods or services not liable to tax.
• Supply of goods or services by an unregistered individual to a registered individual.
• Supply of goods or services by an unregistered e-commerce operator.

How to Make the Best Use of GST Registration: -

The GST registration limit in India has been increased to ₹40 lakhsfrom ₹ 20 lakhs for most states. The states like Jammu and Kashmir, Assam, Arunachal Pradesh, Sikkim, Meghalaya, Nagaland, Tripura, Mizoram and Manipur where the limit is ₹ 10 lakhs. The main objective was to bring more small businesses into the GST net and to improve tax compliance.

To make the best use of this revised GST registration limit, businesses must:

• File their GST returns regularly and on time. This will help them avoid any penalties or interest that may be levied for late filing
• Maintain proper records of their sales and purchases. This will ensure that they are able to correctly calculate their taxes and file accurate GST returns
• Keep updated with changes in GST rates and regulations. This will help them ensure that they are compliant with the latest rules and requirements.