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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 7^th 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.