Answer – As per the current GST laws in India, businesses with an annual turnover of less than Rs. 20 lakhs (Rs. 10 lakhs for businesses in certain states) are exempted from GST registration. This exemption threshold is higher for businesses in some states of India, such as Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura, where the threshold is Rs. 10 lakhs.
However, it’s important to note that this exemption threshold applies to the aggregate turnover of a business, which includes the turnover of all supplies made by the business, whether taxable, exempt, or nil-rated. If the aggregate turnover of a business exceeds the applicable threshold in a financial year, GST registration becomes mandatory, and the business is required to obtain a GSTIN (Goods and Services Tax Identification Number) and comply with the GST regulations.
Even if your business has a turnover below the exemption threshold, you may still voluntarily opt for GST registration if it suits your business needs. GST registration can provide certain benefits, such as the ability to claim input tax credits, participate in interstate transactions, and establish your business as a registered entity in the eyes of customers and suppliers.
It’s recommended to consult with a qualified tax professional or visit the official GST portal at https://www.gst.gov.in/ for the latest and specific information on GST registration requirements and exemptions, based on your business location, turnover, and nature of supplies.
