GST Turnover Limit for Supplier of Goods

The Central Board of Indirect Taxes and Customs have recently come up with two notifications through which the turnover limit for suppliers of goods under the existing composition scheme has been increased and the threshold limit for exemption from

GST registration has been provided.

Turnover Limit for Composition Scheme

With effect from 1

st April, 2019, as per notification no. 14/2019 – Central Tax dated 7th March, 2019, the eligible registered person, whose aggregate turnover in the previous financial year didn’t exceed INR 1.50 Crore, can opt for composition scheme. The aggregate turnover for the specified states of Arunachal Pradesh, Sikkim, Manipur, Tripura, Meghalaya, Uttarakhand, Mizoram and Nagaland would be INR 75 Lakhs. The person who is engaged in manufacturing of following the goods would not eligible to avail composition scheme benefit –

Sr. No.	Tariff	Description of goods
1	2105 00 00	Ice-cream and other edible oil whether or not containing cocoa
2	2106 90 20	Pan masala
3	24	All goods (Tobacco and manufactured tobacco substitutes)

Turnover Limit for Exemption from GST Registration

New threshold limit for exemption from GST registration for a supplier of goods is being provided at notification no. 10/2019-Central Tax dated 7

th March 2019. As per the said notification, the person who is engaged exclusively in the supply of goods and whose aggregate turnover in the financial year does not exceed INR 40 Lakhs is exempt from obtaining GST registration. However, following are the exception to the said exemption i.e. following categories of persons are required to obtain registration even if they fall within the exemption limit –

Persons who are required to obtain compulsory registration under GST law;
Persons engaged in supplying the following goods –

Sr. No.	Tariff	Description of goods
1	2105 00 00	Ice-cream and other edible oil whether or not containing cocoa
2	2106 90 20	Pan masala
3	24	All goods (Tobacco and manufactured tobacco substitutes)

Persons who are engaged in making intra-state supplies in the States of Meghalaya, Arunachal Pradesh, Mizoram, Manipur, Puducherry, Nagaland, Telangana, Uttarakhand, Tripura, Sikkim.
Persons who are voluntarily registered and wants to continue their registration.

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Frequently Asked Questions

Common questions about GST Turnover Limits for Goods Suppliers.

The revised turnover limit for opting for the composition scheme under GST is Rs. 1.5 crore per annum for most states, except for Arunachal Pradesh, Sikkim, Manipur, Tripura, Meghalaya, Uttarakhand, Mizoram, and Nagaland, where the limit is Rs. 75 lakhs per annum.

Yes, the composition scheme is not available for suppliers engaged in manufacturing ice cream, pan masala, tobacco, and manufactured tobacco substitutes.

The new threshold limit for exemption from GST registration for suppliers of goods is an aggregate turnover of Rs. 40 lakhs per annum.

Yes, there are exceptions to the exemption from GST registration for suppliers of goods. Those engaged in supplying ice cream, pan masala, tobacco, and manufactured tobacco substitutes, or those making intra-state supplies in certain states like Meghalaya, Arunachal Pradesh, Mizoram, Manipur, Puducherry, Nagaland, Telangana, Uttarakhand, Tripura, and Sikkim, are required to obtain GST registration even if their turnover is below the exemption limit.

No, if a person is voluntarily registered under GST, they cannot opt for the exemption from registration, even if their turnover falls below the exemption limit.

The purpose of increasing the turnover limit for the composition scheme and providing an exemption limit for GST registration is to reduce the compliance burden for small businesses and promote ease of doing business.

No, the composition scheme is only available for suppliers of goods. Service providers are not eligible for the composition scheme under GST.

No, a person engaged in manufacturing ice cream cannot opt for the composition scheme, even if their turnover is below the threshold limit, as ice cream is one of the goods excluded from the composition scheme.

No, the exemption from GST registration applies only to suppliers of goods. There is no such exemption limit for suppliers of services under GST.

If a person's turnover exceeds the exemption limit or composition scheme limit during the financial year, they are required to obtain GST registration and follow the regular GST compliance procedures from the date their turnover exceeds the limit.