Ssi unit exemption limit under gst

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m.somesh reddy (Querist)
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26 June 2017 Sir/Madam,

We are a small industry (SSI) unit doing fabrication jobs. We are enjoying exemption under SSI unit till 1.5 cr. turnover under Central Excise, hence were not paying any taxes to the Central Excise department. Only quarterly return are submitted online.

Sir/Madam, is there is any provision in GST for the same as we availed earlier.

Sunil

Sunil (Expert)
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26 June 2017 Effective GST the only exemption is Rs.20 lakhs aggregate turnover (excluding GST). Aggregate turnover means exempted as well as taxable turnover. In hill states it is 10 Lakhs. This is applicable only if you do not have interstate purchase / sale of goods or services. In case you sell goods out of state or you buy inputs from out of state, then there is no exemption in turnover.

The only little relief you can get if you buy raw materials and sell ONLY within your state is you can go for the composition scheme and pay 1% of your turnover in case your turnover is upto 75 lakhs. You will not be entitled to charge this 1% to your customer.

Therefore if you sell within your own state, please source raw materials from a taxable dealer in your own state only if you want exemption / relief.

Job worker cannot avail composition scheme as job working is not supply of goods but supply of service taxable at 18%. If you are an SSI job worker then only exemption you get is Rs.20 lakhs provided the person for whom you do the job work is in the same state. He can send goods to you (procured from the state or interstate) and send to you nfor processing.