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CALCULATION OF TURNOVER FOR GST REGISTRATION THRESHOLD LIMIT

NISHANT SHAH (Tax Practioner) (235 Points)

09 December 2019

A PERSON IS RECEIVING RENT OF Rs. 10.00 LAKH P.A. FROM HIS COMMERCIAL PROPERTY IN KARNATAKA. NOW HE IS STARTING AN ARCHITECT FIRM IN RAJASTHAN WHOSE TURNOVER WILL BE APPROX 15 LAKH P.A.. THUS HIS TOTAL RECEIPT WILL BE Rs. 25.00 LAKH APPROX, WHICH IS ABOVE THRESHOLD LIMIT FOR GST REGISTRATION. DOES HE NEED TO OBTAIN GST REGISTRATION ON THE GROUND OF TURNOVER ABOVE 20.00 LAKH ON SINGLE PAN OR SINCE TURNOVER ARE FROM 2 DIFFERENT STATES THEN HE NEED NOT TO REGISTER UNDER GST ACT?

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8 Replies

Shubham Gupta (Business Consultants) (2077 Points)
Replied 09 December 2019

GST Turnover limit is to be considered on PAN basis, If turnover is more than prescribed limit then GST registration is to be taken.

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Sivaramaraju G (Learner) (2398 Points)
Replied 10 December 2019

Threshold limit for service provider is Rs. 40Lakhs

Ravi SADhiyan (Practice) (4510 Points)
Replied 10 December 2019

Originally posted by : Ramaraju G
	Threshold limit for service provider is Rs. 40Lakhs

the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier
who is engaged exclusively in the supply of goods

Sivaramaraju G (Learner) (2398 Points)
Replied 10 December 2019

Ravi thank you for rectification

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 10 December 2019

Yes , he need to get him self Registered.

As per Notification 10/2019 CT , the threshold limit for supply of Goods is 40lac . & In term of Section 22(1) of CGST Act the threshold limit for supply of services is 20lac
so of the Aggregate turnover for FY exceeds the threshold limit , registration is mandatory.
Now if read the Definition of Aggregate Turnover u/s 2(5) it's value of all taxable +exempted supplies of person under same PAN is computed on all India basis.
Hence in your case under same PAN the person supplying both the services so liable to obtain Registration

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NISHANT SHAH (Tax Practioner) (235 Points)
Replied 11 December 2019

Does he need to obtain separate registration for Karnataka & Rajasthan?

Shivam RC (Student) (23683 Points)
Replied 14 December 2019

You have to apply for GST REGISTRATION since your "Aggregate Turnover" exceeds Rs. 20 lakhs. Aggregate Turnover as defined u/s 2(6) of the CGST Act 2017 is calculated PAN wise.

At present the Threshold limit of GST Registration is as under :

1). For Supply of Services : "Rs. 20 lakhs."
2). For Exclusive Supply of Goods : "Rs. 40 lakhs."
3). For Mixed Supplier ( both goods & services ) : "Rs. 20 lakhs."

And Registration under GST is "STATE WISE" . So you have to apply for 2 Registration i.e. one in Rajasthan and the other in Karnataka.

Warm Regards.

susendran (asst manager) (22 Points)
Replied 18 October 2021

sir if we have to pay gst from threshold limit crossing amount or entire amount ie if turn over is Rs.22.00lakhs i have to pay gst for 2.00lacs only or entire amount pls clarify with rules