All About Interest Income- Recognition and taxability

                    GST - Threshold limit for Registration 

In Goods and service Tax laws, a person who carries on any activity for the furtherance of business, for a consideration liable to collect and pay GST to Government.

In order to provide relief to small Businesses, a threshold limit has been incorporated in laws. A Business whose turnover does not exceed the aforesaid limit doesn’t need to get register, but voluntarily any business can get registered.

Who is liable to get register?

Every supplier is liable to get registered under GST laws, if aggregate turnover of the business exceeds 20 lacs during the financial year, provided in case of special category states, the threshold limit is 10 lacs.

For the purpose of this proviso, special category states include Mizoram, Tripura, Manipur and Nagaland.

Also Read: https://savvytaxcorp.blogspot.com/2020/02/bu-dget-2020-highlights-finance.html

Also, any person who is engaged in the exclusive supply of goods and whose turnover does not exceed 40 lacs is exempt vide Notification No. 10/2019. However, the above said exemption is not applicable for the following persons:

1    Person who requires to take compulsory registration under section 22.

2     Person engaged in making supplies of following goods, namely,

      (a)          Ice cream and other edible ice, whether or not containing cocoa,

      (b)          Pan masala,

      (c)          Tobacco and manufactured tobacco substitutes.

      (d)         Persons engaged in the interstate supplies in the states of Arunachal         

               Pradesh, Manipur, Meghalaya, Nagaland, Pondicherry, Sikkim, Telangana,

               Tripura and Uttarakhand, and

      (e)          Persons opting for voluntary registration.

# Aggregate turnover means the aggregate value of 

   All taxable supplies (excluding the value of inward supplies on which reverse

   charge mechanism is applicable

     Exempt supplies,

   Exports of goods or services or both,

   Interstate supplies 

       of persons having the same permanent account number, to be computed on all     India basis.

# Tax and cess not to be included while computing aggregate turnover.

The following persons specified below are not liable for registration:

(a)          Persons exclusively engaged in the supplies of exempt goods or services or both.

(b)          Persons exclusively engaged in the supplies of non-taxable goods or services or both.

(c)          Agriculturist, to the extent of supply of produce out of cultivation of land

(d)          Persons engaged in the interstate supplies of taxable services having aggregate value not exceeding 20 lacs.

(e)          Persons engaged in exclusive taxable supplies, total tax on which is to be paid on reverse charge basis.

(f)            Persons making interstate taxable supplies of notified handicrafts goods up to 20 lacs

(g)          Casual taxable persons making taxable supplies of handicraft goods and handmade shawls, stoles, etc.

(h)          Job-workers engaged in making interstate supplies of services

(i)            Persons engaged in the supplies of service through an e-commerce platform.

Also, under GST laws, the following persons are compulsorily required to be registered irrespective of aggregate turnover:

(a)          Persons making interstate supplies of taxable services subject to threshold limit specified above.

(b)          Casual Taxable person who does not have a fixed place of business in the state or union territory from where he wants to make supply

(c)          Persons required to pay tax under Reverse charge mechanism

(d)          E-commerce operator, who is required to pay tax on specified services

(e)          Non resident taxable person making taxable supplies

(f)            Person who is required to deduct tax under section 51, whether or not separately registered

(g)          Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise

(h)          Input service distributor

(i)            Every e-commerce operator who is required to collect tax under section 52 under the law

(j)            Every person supplying OIDAR services

(k)          Other person or class of persons notified by the government.

Disclaimer

The article is written for reference, guidance and complied based on experience and knowledge about the relevant Law. This should not be considered legal advice. You should seek appropriate counsel for your particular case.

Please note that this post is for the readers in India.