GST: THRESHOLD RAISED FOR SUPPLIERS OF GOODS IN MOST STATES – BUSINESS LINE
From April 1, all the States barring Kerala and Telangana, and two Union Territories (with assemblies), will have higher annual threshold limits for mandatory registration for GST for goods suppliers. There is no change in the limit for service providers.
According to information available with the Finance Ministry, 18 States and two UTs have exercised an option to revise the annual threshold limit; for nine States, the option was deemed to have been exercised.
Two UTs and all the 29 States were asked to select their option — whether to raise the limit or maintain status quo. It was a one-time exercise meant mainly to benefit micro, small and medium enterprises (MSMEs.)
GST Council decision
The GST Council, in its meeting on January 10, had decided that there would be two threshold limits for goods suppliers — ₹40 lakh (for the bigger States apart from Himachal Pradesh, Assam and J&K) and ₹20 lakh (for the seven North Eastern States apart from Uttarakhand and Puducherry). At present, these limits are ₹20 lakh and ₹10 lakh, respectively.
It was also decided that the States would have a week to decide on one of the two limits. The threshold for registration for service providers would continue to be ₹20 lakh, and in the case of Special Category States, ₹10 lakh.
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