Ascertaining of total turnover for threshold limit fixed in GST.

[samiuddin ansari]

Sir,

Under GST, the threshold limit for exemption has been fixed for ₹ 20 lakhs for the supplier of taxable services and ₹ 1.50 Crore for the supplier of manufactured taxable goods for getting registered with GST. However, I need your suggestion as to whether manufacturer engaged in manufacturing taxable goods having a turnover less than threshold limit but also supplied services have more than 20 lakhs in a financial year, has to apply for registration under GST and also whether they have to show the details of manufactured goods supplied in GST Form 20 or not. Also, suggests, if the manufacturer have more than 1.5 crores in a financial year, but less than 20 lakhs of supply of service in a financial year have to get them registered under GST. In other words, whether they have to file Form 20 in GST portal for registration.

As per provisions, it has come to know that all types of supply of goods and services whether taxable, non-taxable, exempted or exported would be counted for calculating the total turnover for getting threshold exemption or not.

As per my understanding, it seems that if my total turnover exceeds ₹ 20 lakhs, I will have to be applied for getting registration with GST Registration. Please through light on my understanding whether it is a correct conclusion or otherwise.

Thanks with regards

S.N.Ansari.

[Himansu Sekhar]

IT appears the last part of your ascertainment is correct. Please refer to the relevant provisions of CGST Act

"22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

X X X

The concept of manufactureing will be done away with. The concept of supply for levy and collection as per Sec. 9 of CGST Act will prevail upon. Please find the definition of supply at Section 7 of the CGST Act.

[Ganeshan Kalyani]

As far as provisional GST enrolment which is going on is concern every existing registered dealer has to migrate to GST. And further under GST if the turnover is below the threshold limit one may sought to surrender the number.

AI Summary

Threshold turnover determines GST registration liability when aggregate supplies exceed the prescribed limit for a taxpayer. Liability to register under GST is determined by aggregate turnover in a financial year, which includes all supplies (taxable, non taxable, exempt and exported); exceeding the applicable State threshold triggers mandatory registration, the manufacturing test is removed and the general supply concept governs levy, while migration and surrender procedures address enrolment for existing taxpayers.