Liability to pay tax

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sourabh (Querist)
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28 September 2016 Under GST the threshold limit is 20 lakh/10 Lakh for applicability of GST. Is there any limit for registration or payment of tax under GST as the same under Current situation under Service tax that if provider is exceed the limit if Rs. 9 lakh it is mandatory required for registration and if it exceed the limit of Rs. 10 lakh provider is liable for payment of service tax?

Pls resolved my query ASAP.

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GST Pitara

GST Pitara (Expert)
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07 October 2016 Yes, there will be a different set of limits of turnover, for registration of an entity under GST. This can be concluded based on the assumption that a similar structure exists in the Draft Model GST Law released by the Govt. in June 2016 for public comments.

As per draft Model GST Law, the threshold limit for the exemption from levy of GST is Rs. 10 lakh whereas, for the north-eastern states including the state of Sikkim this limit is of Rs. 5 lakh. However, in the case of registration, every supplier is liable to be registered under the Act if his aggregate turnover in a financial year exceeds Rs. 9 lakh/ Rs. 4 lakh (as the case may be).
But in September 2016, in the first meeting of the GST Council, there was consensus over keeping the annual exemption threshold for levy of GST at Rs. 20 lakh whereas, for the north-eastern and hill states at Rs. 10 lakh. So it is expected that Govt. will come up with a corrigendum to Draft Model GST Law in future, specifying the change in limits for registration under the Act.

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sourabh

sourabh (Querist)
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12 October 2016 That means in current there is neither any notifiication published by gov. for registration ( except leviable of GST)

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GST Pitara

GST Pitara (Expert)
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12 October 2016 No, till date no notification has been issued by Govt. regarding the threshold limit for registration under GST.

sourabh

sourabh (Querist)
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07 November 2016 Thank you for your good time.

GST Pitara

GST Pitara (Expert)
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03 December 2016 As per Schedule 'V' of the Revised Draft Model GST law issued by the Government in November 2016, every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds Rs.20 lakh. But for the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand this limit is Rs.10 lakh.

And as per Section 10(1) of the Act 'Taxable Person means a person who is registered or liable to be registered under Schedule V of this Act.'

Thus, the threshold limit for registration under GST and the threshold limit for exemption from levy of GST are same.