Service Providers Gst Registration Turnover

Service providers in India having a turnover of upto Rs.20 lakhs and involved in providing inter-state or intra-state services are exempt from obtaining

GST registration. Initially, service providers involved in providing of inter-state services were mandatorily required to obtain GST registration and file GST returns. However, in the 23rd GST Council Meeting, the Government decided to exempt service providers involved in providing inter-state services from obtaining GST registration. The notification pertaining to the above decision is reproduced below for reference:

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs

Notification No. 10/2017 – Integrated Tax

New Delhi, the 13th October, 2017

G.S.R. …..(E).— In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act: Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.

[F. No.349/74/2017-GST (Pt.)]

(Dr. Sreeparvathy S.L.) Under Secretary to the Government of India

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Government Notification in Hindi

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Frequently Asked Questions

Common questions about Service Providers GST Registration in India.

Service providers in India having an aggregate turnover up to Rs. 20 lakhs from providing inter-state or intra-state services are exempt from obtaining GST registration. However, for special category states (except Jammu and Kashmir), the turnover limit for exemption is Rs. 10 lakhs.

Yes, initially service providers involved in providing inter-state services were mandatorily required to obtain GST registration and file GST returns. However, in the 23rd GST Council Meeting, the government decided to exempt such service providers from obtaining GST registration.

The government's decision to exempt service providers with a turnover below the specified limits from GST registration is likely aimed at reducing compliance burdens and promoting ease of doing business for small service providers.

The exemption from GST registration applies to both service providers engaged in inter-state and intra-state supply of services, provided their aggregate turnover does not exceed the specified limit of Rs. 20 lakhs (or Rs. 10 lakhs for special category states, except Jammu and Kashmir).

The notification regarding the exemption for service providers from GST registration was issued by the Central Board of Excise and Customs on 13th October, 2017, under Notification No. 10/2017 – Integrated Tax.

The term 'special category states' refers to the states specified in sub-clause (g) of clause (4) of article 279A of the Constitution of India, excluding the state of Jammu and Kashmir. These states have a lower turnover limit of Rs. 10 lakhs for the exemption to apply.

The notification does not mention any specific time limit or validity period for the exemption. It appears to be an ongoing exemption until further notice or amendment by the GST Council or the government.

The notification does not specify any exceptions or exclusions for particular types of services. As long as the service provider's aggregate turnover does not exceed the specified limit, the exemption should apply to all types of taxable services provided.

If a service provider's aggregate turnover exceeds the exemption limit of Rs. 20 lakhs (or Rs. 10 lakhs for special category states, except Jammu and Kashmir) during a financial year, they would become liable to obtain GST registration and comply with the relevant GST provisions.

The notification does not mention any specific process or documentation required to claim the exemption. However, service providers claiming the exemption should maintain proper records of their turnover and be prepared to provide evidence, if required by the GST authorities.