The government has made it mandatory for business whose aggregate turnover in a financial year exceeds Rs 20 lakh to register under Goods and Services Tax (GST).
The GST exemption limit for Northeastern and hilly states, including Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, is Rs 10 lakh.
However, the GST Council on January 10, 2019, doubled the GST exemption limit to Rs 40 lakh for micro, small and medium enterprises (MSMEs).
The GST exemption limit for northeastern and hilly states has also been doubled to Rs 20 lakh.
The new GST rate will come into effect from 1 April 2019.
What is Aggregate Turnover in GST?
The GST registration requirement depends on the aggregate turnover of a business. It is a crucial parameter for deciding the eligibility of business to avail the benefit of GST exemption and for determining the threshold limit for composition levy.
The law defines aggregate turnover as “the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on an all-India basis but excludes Central tax, State tax, Union territory tax, Integrated tax and cess.”
Source- Times of India.