CBEC Notifies Exemption from Registration for All Inter-state Service Providers having Turnover below the Threshold Limit
The GST Council, in its 22nd Meeting on 6 Oct. 2017 has decided and recommended that all inter state service providers shall be exempted from Registration, if turnover remains below the threshold limit. Presently, anyone making inter-state taxable supplies, except inter-State job worker, is compulsorily required to register, irrespective of turnover. This measure is expected to significantly reduce the compliance cost of small service providers.
Accordingly, the CBEC has notified exemption from obtaining registration for those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states except J & K), even if they are making inter-State taxable supplies of services, as under:
G.S.R. 1260(E).— In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year as the category of persons exempted from obtaining registration under the said Act:
Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.