Threshold limits for Regular and Composition Registration under GST law

Shivashish , Last updated: 20 March 2019
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In this article, attempt has been made to enlist various thresholds (as amended from time to time)as prescribed under the GST law for normal registration in different States/UTs, thresholds for Composition registration and a snapshot on Notification No. 2/2019- CT (Rate). Read on.

Normal Registration in case of Goods:

Particulars	States/UTs	Relevant Sections, etc.	Limits	Period/Effective Date
Person engaged in Inter-State Supply	All States and UTs	Section 24	No limit	W.E.F. 1st July, 2017
Person engaged only in 'Intra-State' Supply of only goods except of following tariff items: i. 2105 00 00* ii. 2106 90 20* iii. 24*	All States and UTs except: 1. 6 North Eastern States (i.e. except Assam); 2. Uttarakhand; 3. Telangana; 4. Puducherry	Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate)	40 lacs	W.E.F. 1st April, 2019
Person engaged only in 'Intra-State' Supply of only goods	1. 6 North Eastern States; 2. Uttarakhand; 3. Telangana 4. Puducherry	Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate)	20 lacs	W.E.F. 1stApril, 2019
Person engaged in supply of following Tariff items: i. 2105 00 00* ii. 2106 90 20* iii. 24*	Any State	Section 22(1)	20 lacs/10 lacs as the case may be	W.E.F. 1st July, 2017
Person engaged only in 'Intra-State' Supply of only goods	Assam	Section 22(1)	10 lacs	1st July, 2017 till 31st March, 2019
Person engaged only in 'Intra-State' Supply of only goods	Assam	Section 22(1)	40 lacs	W.E.F. 1st April, 2019
Person engaged only in 'Intra-State' Supply of only goods	All States and UTs except: 1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim	Section 22(1)	20 lacs	1stJuly, 2017 till 31st March, 2019
Person engaged only in 'Intra-State' Supply of only goods	1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim	Section 22(1)	10 lacs	1stJuly, 2017 till 31st March, 2019

Normal Registration in case of Services:

Particulars	States/UTs	Relevant Sections, etc.	Limits	Period/Effective Date
Person engaged in Intra or Inter State Supply of Services	All States or UTs except Manipur, Mizoram, Nagaland, Tripura	Section 22(1)	20 lacs	W.E.F. 1st February, 2019
Person engaged in Intra or Inter State Supply of Services	Manipur, Mizoram, Nagaland, Tripura	Section 22(1)	10 lacs	W.E.F. 1st February, 2019
Person engaged in Intra or Inter State Supply of Services	All States and UTs except: 1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim	Section 22(1), Section 23(2) r/w notification no. 10/2019- IT	20 lacs	13th October, 2017 till 31st January, 2019
Person engaged in Intra or Inter State Supply of Services	1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim	Section 22(1), Section 23(2) r/w notification no. 10/2019- IT	10 lacs	13th October, 2017 till 31st January, 2019
Person engaged in 'Inter-State' Supply of Services	All States and UTs	Section 24	No limit	1st July, 2017 till 12th October, 2017
Person engaged only in 'Intra-State' Supply of Services	All States and UTs except: 1. 7 North Eastern States; 2. Uttarakhand; 3. Himachal Pradesh; 4. Sikkim	Section 22(1), Section 23(2) r/w notification no. 10/2019- CT (Rate)	20 lacs	1st July, 2017 till 12th October, 2017

Composition Registration (Section 10 and rule 7):

For all States and UTs 'except 7 North Eastern States, Himachal Pradesh, Sikkim'
Category of Supplier	Limits	Period	Rate (% of the turnover in the State or UT)
Manufacturer except of following tariff items: i. 2105 00 00* ii. 2106 90 20* iii. 24*	75 lacs	1stJuly 2017 till 12th October, 2017	2%
	1 Crore	13th October, 2017 till 31st December, 2017	2%
	1 Crore	1st January 2018 till 31st March, 2019	1%
Services mentioned in Clause (b) of Paragraph 6 of Schedule II	75 lacs	1stJuly 2017 till 12th October, 2017	5%
	1 Crore	13th October, 2017 till 31st March, 2019	5%
Any other Supplier	75 lacs	1stJuly 2017 till 12th October, 2017	1%
Any other Supplier	1 Crore	13th October, 2017 till 31st March, 2019	1%

7 North Eastern States, Himachal Pradesh, Sikkim
Manufacturer except of following tariff items: i. 2105 00 00* ii. 2106 90 20* iii. 24*	50 lacs	1stJuly 2017 till 12th October, 2017	2%
	75 lacs	13th October, 2017 till 31st December, 2017	2%
	75 lacs	1st January 2018 till 31st March, 2019	1%
Services mentioned in Clause (b) of Paragraph 6 of Schedule II	50 lacs	July 2017 till 12th October, 2017	5%
	75 lacs	13th October, 2017 till 31st March, 2019	5%
Any other Supplier	50 lacs	1stJuly 2017 till 12th October, 2017	1%
Any other Supplier	75 lacs	13th October, 2017 till 31st March, 2019	1%

For all States and UTs 'except 6 North Eastern States (i.e. Except Assam), Uttarakhand, Sikkim'
Category of Supplier	Limits	Effective Date	Rate (% of the turnover in the State or UT)
Manufacturer except of following tariff items: i. 2105 00 00* ii. 2106 90 20* iii. 24*	1.5 Crore	W.E.F. 1st April, 2019	1%
Services mentioned in Clause (b) of Paragraph 6 of Schedule II	1.5 Crore	W.E.F. 1st April, 2019	5%
Any other Supplier	1.5 Crore	W.E.F. 1st April, 2019	1%

6 North Eastern States (i.e. Except Assam), Uttarakhand, Sikkim
Category of Supplier	Limits	Period	Rate (% of the turnover in the State or UT)
Manufacturer except of following tariff items: i. 2105 00 00* ii. 2106 90 20* iii. 24*	75 lacs	W.E.F. 1st April	1%
Services mentioned in Clause (b) of Paragraph 6 of Schedule II	75 lacs	W.E.F. 1st April	5%
Any other Supplier	75 lacs	W.E.F. 1st April	1%

Notes:

1. Normal rates are applicable when a composition supplier receives supplies on which reverse charge is applicable.

2. With effect from 1st February, 2019, a proviso has been inserted in Section 10(1) of CGST Act which provides that a person who opts to pay tax under composition scheme can supply services of value not exceeding ten percent of turnover in a State or UT in the preceding financial year or five lakh rupees, whichever is higher. Following needs to be noted in this regard:

a. Rate of tax to be applied on such value of services is 1% or 5% as the case may be i.e. depending on the rate on which tax is paid for composition supplies.
b. For calculating the value of services, services supplied under Clause (b) of Paragraph 6 of Schedule II should not be considered.

3. *Tariff Items:

a. *2105 00 00: Ice cream and other edible ice, whether or not containing cocoa.
b. *2106 90 20: Pan Masala
c. *24: All goods, i.e. Tobacco and manufactured tobacco substitutes.

Notification No. 2/2019- CT (Rate) dated 7th March, 2019:

1. This notification is to be effective from 1st April, 2019.

2. This notification is issued for intra-state supplier having major value of supplies as 'Services';

3. Only persons not eligible for 'Section 10' and having aggregate turnover of less than 50 lacs in preceding financial year can opt for this notification. Illustratively, a person having turnover of 40 lacs in which 30 lacs relates to Services.

4. Reduced rate of 6% is applicable for first 50 lacs of Aggregate turnover.

The author can also be reached at ca.shivashish@gmail.com

Disclaimer: The information provided is not a substitute for legal and other professional advice. This is only for academic discussions.