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Higher Exemption Threshold Limit for Supplier of Goods upto 40 Lakhs from taking GST Registration

Higher Exemption Threshold Limit for Supplier of Goods upto 40 Lakhs from taking GST Registration

In exercise of the powers conferred under Section 23(2) of the CGST Act, 2017 (“CGST Act”), the CBIC vide its Notification No. 10/2019-Central Tax dated March 07, 2019 has notified that a person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs. 40 lakhs is exempt from taking registration under GST, except: (a) Persons required to take compulsory registration under Section 24 of the CGST Act; (b) Persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table:

Sl. No. Tariff item, sub-heading, heading or Chapter Description
1 2105 00 00 2105 00 00
2 2106 90 20 Pan masala
3 24 All goods, i.e. Tobacco and manufactured tobacco substitutes

(c) Persons engaged in making intra-state supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Pondicherry, Sikkim, Telangana, Tripura, Uttarakhand; and (d) Persons exercising option of voluntary registration under the provisions of Section 25(3) of the CGST Act, or such registered persons who intend to continue with their registration under the CGST Act.

The above notification shall come into force from April 1, 2019. Note:The above mentioned notification is issued pursuant to the GST Council decision in its 32nd meeting held on January 10, 2019, wherein, inter-alia, it was decided that effective from April 01, 2019, there would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would have an option to decide about one of the limits.


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