GST Exemption Limit In India (2023 Limits)

For registration under the Goods and Services Tax (GST) in India, there is an exemption limit. If a person’s annual revenue exceeds the limit for exemption, they must register for the Goods and Services Tax. This is often referred to as a GST threshold or registration limit.

Because the law changes frequently, there have been many inquiries about the GST threshold. 

In this article, we will discuss the GST exception limit in India. 

Let’s take a look at what the GST exemption limit is. 

What Is the GST Exemption in 2022?

The Rs. 20 lakh and Rs. 40 lakh threshold limitations for GST registration for commodities providers have been created by the Central Government.

However, because each state’s revenue is also based on the GST, each state government must make a decision regarding the threshold limit within a week. Different states will eventually have different GST threshold levels as a result of this decision.

When a service provider’s annual revenue reaches Rs. 20 lakhs, or Rs. 10 lakhs for Special Category States, they must continue to register for GST.

Who Is Exempt from GST?

A business is regarded as GST-exempt if its yearly revenue is below Rs. 40 lakhs. Businesses that generate less than Rs. 1.5 crore in annual revenue may use a composition scheme under GST.

What Is the Maximum Tax-free Gift for 2022?

The Indian Parliament first proposed the Gift Tax Act in 1958. It was developed to impose a tax on receiving and giving gifts under certain circumstances. These presents may come in any form, including money, jewellery, real estate, stocks, a car, etc.

According to the Income Tax Act of 1961, if a gift is worth more than Rs. 50,000, the recipient must pay tax on it as income.

Is GST Required above 20 Lakhs?

If a person’s annual gross income exceeds Rs. 20 lakh for regular category states or Rs. 10 lakh for special category states, they are required to register for GST.

What Income Is Eligible for GST?

Every company that sells goods and has an annual revenue of more than Rs 40 lakh must register as a regular taxable person. If you own a business in the northeastern states of J&K, Himachal Pradesh, and Uttarakhand, the threshold limit is INR 10 lakh.

The maximum annual turnover for service providers is INR 20 lakh or INR 10 lakh in states that fall under a specific category.

Who Is Eligible for GST?

Below is the list of the indiviuals who are eligible for GST:

• Individuals who are listed as Pre-GST law participants (i.e., Excise, VAT, Service Tax, etc.)
• Businesses whose annual revenue exceeds the threshold level of Rs. 40 lakh, Rs. 20 lakh, or Rs. 10 lakh, depending on the situation
• Non-Resident taxable person or casual taxpayer
• Agents of a supplier and distributors of input services
• The person who pays tax using the reverse charge mechanism
• A supplier through an e-commerce aggregator
• Every e-commerce aggregator 
• Individual who provides online information and database access or retrieval services to an Indian individual who is not a registered taxable person from a location outside of India

Which Are Amazon GST Exempted Categories?

Here is the list of GST exempt products categories on Amazon:

Food

● Cereals

● Edible fruits and vegetables (not frozen or processed)

● Edible roots, tubers, fish, and meat (not packaged or processed)

● Tender coconut

● Jaggery

● Unprocessed Tea leaves

● Unroasted Coffee beans

● Seeds

● Ginger

● Salt

● Turmeric

● Betel leaves

● Papad

● Non-branded flour, gram flour, whole flour

● Non-branded natural honey

● Unpacked paneer

● Bread

● Puffed rice

● Eggs

● Dairy products – milk, curd, lassi, buttermilk

● Aquatic feed

● Poultry and cattle feed

● Supplements

Raw materials

● Raw silk, jute, wool

● Silk waste

● Khadi fabric

● Cotton used for khadi yarn

● Raw jute fibre

● Firewood

● Charcoal

● Handloom fabrics

Tools/Instruments

● Hearing aids

● Hand tools like spades and shovel

● Tools for agricultural work

● Handmade musical instruments

● Aids and implements for physically challenged people

Miscellaneous

● Books, maps, newspapers, journals

● Non-judicial stamps, postal items

● Drawing or colouring books for children

● Educational services

● Live animals (except horses)

● Beehives

● Human hair, blood, and semen

● Bangles

● Chalk sticks

● Contraceptives

● Earthen pots

● Items used in pooja like idols, bindi, kumkum

● Kites

● Indian national flag

● Gandhi topi

● Organic manure

● Vaccines

How to Add GST Number to an Amazon Order?

• Log in to your Amazon account.
• Go to ‘Settings’ > ‘Account Info’.

• Scroll down to ‘Business Information’ > click  ‘Edit’.

In the ‘GSTIN’ field, enter a 15-digit GST number. 

Click ‘Save’.

Pro Tip: Provide additional documents, like a GST registration certificate and PAN card to verify your GST number. 

FAQs: GST exemption limit in India

1. Do we need GST for small businesses?

Yes, all small firms register for GST since the GST Act requires them to do so.

2. Is GST mandatory for a private limited company?

All firms, whether they are public or private limited enterprises, should register for their GST.

3. Is GST compulsory?

Yes, you have to register for GST as soon as your income reaches the necessary threshold.

4. Does all businesses need GST?

Yes, all small businesses register for GST since the GST Act requires them to do so.

5. Is GST registration free?

No fees are associated with GST registration. As a result, there is no fee associated with GST registration.

Conclusion

We hope this article on the GST exemption limit is helpful to you. If you still have any questions regarding the article, please leave a comment below and feel free to reach out to us. Visit our website, InstaFiling, for more information on GST. We are happy to help. 

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