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Exemption Limit under GST is 20 Lakh - SSI units and Small Service Provider

By Paras Mehra

( 21K Views) November 4, 2016

It has been quite a long discussion over the exemption limit under GST which has now being finalised by GST council. The exemption limit for Goods and Service Tax (GST) is as under:

Particulars	Amount
Exemption Limit for North-Eastern States	Rs.10 Lakh
Exemption Limit for Rest of India	Rs.20 Lakh

The exemption limit is applicable only when supply (sale) is made within the state. Any supply outside the state will attract registration provisions.

Is the exemption limit is liable to change?

The above is the finalised limit and not subject to any change by the authority. The GST Council is the final authority to decide on GST model.

When Exemption limits is not applicable

The following person shall have to register irrespective of the turnover;

Person making any inter-state taxable supply (i.e. selling outside the state)
Casual Taxable person
Person who required to pay under Reverse Charge
Non-resident taxable person
A person required to deduct tax (e.g. e-commerce business – marketplace).
The person supplying goods or services or both as an agent of any other person.
Input Service Distributor
A person who supplies goods or services through e-commerce.
Every e-commerce operator
An aggregator who supplies services under his brand name

Other Important points relating to exemption limit

Earlier, there was a discussion to set the exemption limit up to Rs.25 Lakh. However, it was finalised at Rs.20 Lakh.

The finalised exemption limit will be valid all over India except north eastern states, as separate limit has been prescribed for them.

The exemption limit is also applicable in the state of Jammu and Kashmir.

The exemption limit will also include the free supplies made as per GST law.

The exemption limit will subsume all taxable supplies including service tax, VAT, excise, etc.

Conclusion

The GST is a new law and not yet applicable in India. Hence, in case you have any doubt, or issue or question relating to exemption limit, you can ask through the contact window.