New GST Registration Threshold Limit for Services in India

Goods and Services Taxes stand as a form of indirect tax which is levied towards the supply of goods and services in India. But there is a turnover limit for GST registration and only those goods and service providers who fall under this threshold limit for GST registration need to do GST registration. The GST aims to further divide the national market for the various states through which one can compile the various taxes from state and other central taxes. The major aspect of GST registration is mandatory as a form of threshold towards the business. The GST registration further helps to determine the actual turnover of the business through which one is required to further register for the GST. The said type of threshold stands out to differ as per the goods and services.

Latest Amendment for Turnover Limit for GST Registration 

The latest amendments which are made by the central government also have a minimum turnover limit for GST registration that stands up to a limit of 40 Lakhs for goods and 20 lakhs for services. Any activities involving the supply of goods and services followed by the sale of goods and services are also subjected to taxation under the GST rules. The below mentioned are some of the activities that are further exempted from the registration of GST:

• Any supply of goods and services which are not taxable
• Any supply of goods and services done by an unregistered person or any registered individual.
• To provide for the goods and services made through any unregistered e-commerce operators.

The Minimum GST Turnover Limit in India 

The below-mentioned provides for the concept of GST Turnover limit or we can say threshold limit for GST registration:

• This comes towards the companies that have a yearly turnover of above Rs. 40 Lakhs made towards the goods and Rs. 20 Lakhs which is made towards the services and are required to further register for GST and also pay for the taxable goods. 
• Any business that has a yearly turnover of less than Rs. 40 Lakhs is not required to register itself under the GST. The most beneficial aspect comes with the registration of GST towards the business as it talks about the proper input tax credit and other applicable benefits. 
• A special category has also been added that talks about the GST registration limit of Rs. 20 Lakhs made for the supply of goods and other Rs. 10 Lakhs for the supply of various services. It includes the state line Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.

Threshold Limit for GST Registration in India 

The below-mentioned table provides for the threshold limit for GST registration as per the activity carried out by the state:

Calculation of the GST Turnover Threshold Limit in India 

To calculate the threshold limit for GST registration, one must access the 'turnover for GST registration' which is the aggregate turnover of any individual's business. GST Turnover Threshold is the minimum turn-on of one's business that they require for their GST registration. The factors that one should consider while calculating the turnover limit of GST registration are:

Taxable Sales Value

The total value of those sales on which GST is applicable is called as taxable sales value. While calculating the GST registration turnover limit, one should consider the value of all taxable services and goods that they sell. This further clarifies for the proper taxable sales value.

Exempt Sales Value

Some certain services and goods are exempt from GST. These sales do not attract GST, but while evaluating the turnover value for registration purposes, considering their values is essential. One can get exempted towards the sales and other value made towards GST.

Export Of Goods And Services

The export of goods and services is the generated review of one business's international supplies. These sales are important because they are converted to local currencies for taxation, accounting and compliance purposes.

Interstate Supplies

Interstate supplies refers to the sale of the services and goods to customers in the other states of India and the IGST rate for it. The interstate supplies stand out to be for the sale of services and goods provided under the GST rules.

Financial Year to Reckon the Aggregate Turnover

The aggregate turnover for a financial year is about considering the applicability of new threshold limits. If the aggregate turnover of a supplier exceeds the threshold limit of the current financial year, then they will have to get it registered under GST. Although, there are certain categories of people who are required to get compulsorily registered under GST. They are:

• Casual Taxable Persons are required to get registered under the GST
• Interstate suppliers who should also get registered under the GST rules
• Non-resident taxable persons
• Persons taxable under the reverse charge basis
• Persons required to deduct TCS under GST
• Persons required to deduct TDS under GST
• Individuals making sales on behalf of any other person whether as a Principal or an Agent
• Input service providers
• Every e-commerce operator provides a platform to suppliers who make a supply through it.
• The online service providers provide services from outside India to a non-registered person in India.

Conclusion

The GST registration threshold limit for service providers in India is ₹20 lakhs for most states and ₹10 lakhs for special category states. Businesses engaged in specific activities like inter-state supply, e-commerce, or those liable for tax under the reverse charge mechanism must register for GST regardless of turnover. Non-compliance can result in penalties, emphasising the importance of understanding and adhering to these regulatory requirements.