Most states, UTs raise GST threshold for suppliers of goods to Rs40 lakh
15 Feb 2019
1
Beginning 1 April, all states and union territories in the country except Kerala and Telangana and two union territories (with assemblies) will have higher annual threshold limits for mandatory registration for GST for goods suppliers.
This limit is not applicable for businesses selling goods inter-state. There is also no change in the limit for service providers.
So far, 18 states and two UTs have exercised an option to revise the annual threshold limit; while for nine other states, the option was deemed to have been exercised, according to information available with the finance ministry.
The GST Council at its meeting on 10 January, decided to double the threshold limits for goods suppliers to Rs40 lakh (for the bigger states apart from Himachal Pradesh, Assam and J&K) and Rs20 lakh (for the seven North Eastern states apart from Uttarakhand and Puducherry).
At present, these limits are Rs20 lakh and Rs10 lakh, respectively.
The Council had given an option to UTs and all the 29 states to opt from the two threshold limits to either raise the limit or maintain status quo. It was a one-time exercise meant mainly to benefit micro, small and medium enterprises (MSMEs.)
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 Rs20 lakh, and in the case of Special Category States, Rs10 lakh.
While the Kerala government it was still considering whether to raise the GST threshold for goods suppliers, the Telangana government said it would maintain status quo “till a decision is taken by the chief minister”.
According to a senior finance ministry official, the Kerala government had said it would, but subsequently said it was still under consideration.
States have time till 31 March to select their option and inform the centre about it.
.jpg "RBI keeps repo rate unchanged as focus remains on inflation")
