Is GST applicable if turnover is less than 40 lakhs?
In other words, supplier of goods having an aggregate annual turnover of up to Rs 20 Lakhs in the preceding financial year were not required to register under the GST Law.
This exemption limit, however, has been doubled by the GST Council from Rs.
20 lakhs to 40 lakhs in the 32nd GST Council meeting..
Is GST compulsory?
What is GST Registration. In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory.
Where is GST not applicable?
Petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel etc. are not attracted GST. However, the taxes for these products are attracted as per the structure before introduction of GST.
How do I calculate GST?
GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs.
What is the limit for GST?
20 lakhThe 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).
What is turnover in GST?
Turnover, in common parlance, is the total volume of a business. The term ‘aggregate turnover’ has been defined in GST law as under: … The aggregate turnover is a crucial parameter for deciding the eligibility of a supplier to avail the benefit of exemption threshold of Rs. 20 Lakhs [Rs.
Who should pay GST in India?
You must collect and pay GST when your turnover in a financial year exceeds Rs. 20 lakhs. [Limit is Rs 10 lakhs for some special category states]. These limits apply for payment of GST.
Is GST applicable for turnover less than 20 lakhs?
Currently, businesses with a turnover of up to Rs 20 lakh is exempt from GST registration, while the limit for hilly and north eastern states is Rs 10 lakh. Sources said the annual revenue loss on account of doubling exemption limit to Rs 40 lakh, considering that all states implement it, is Rs 5,200 crore.
What if my turnover is less than 20 lakhs?
The traders, who have turnover below Rs 20 lakh and supply goods and services within the state, can also go for voluntary registration to avail input tax credit. “But once registered, the traders will have to pay taxes on all supplies, even if turnover is less than Rs 20 lakh,” Adhia said.