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Benefits available to small tax payers under the GST regime

 

  • Tax payers with an aggregate turnover in a financial year upto [Rs.20 lakhs & Rs.10 Lakhs for NE and special category states] would be exempt from taking registration under GST.
  • Further, a person whose aggregate turnover in the preceding financial year is less than Rs.1 Crore (75 lakhs for 9 special category states viz 1. Arunachal Pradesh, 2. Assam, 3. Manipur, 4. Meghalaya, 5. Mizoram, 6. Nagaland, 7. Sikkim, 8. Tripura, and 9. Himachal Pradesh) can opt for a simplified composition scheme where tax will payable at a concessional rate on the turnover in a state.
  • Aggregate turnover shall include the aggregate value of all taxable supplies, exempt supplies and exports of goods and/or services and exclude taxes viz. GST.
  • Aggregate turnover shall be computed on all India basis.
  • For NE States and special category states, the exemption threshold shall be [Rs. 10 lakhs].
  • All taxpayers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits.
  • Tax payers making inter-State supplies of goods or paying tax on reverse charge basis shall not be eligible for threshold exemption.

 

 

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