What is the minimum income to pay GST?

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.

Is GST compulsory for small business?

However, any business whose turnover exceeds Rs 40 lakh in a financial year is required to register under GST. This limit is Rs 20 lakh for service providers. This higher threshold under GST has brought compliance relief to many small businesses, including startups in India.

Is GST required below 10 lakhs?

Persons providing services need to register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states).

Is every taxable person required to register in GST?

Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too. When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.

Who is eligible to register under GST?

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration. For certain businesses, registration under GST is mandatory.

Can I open current account without GST?

To carry out any financial transaction for your business, you require to set up a Current Account. However, GST is not mandatory to open a Current Account. There is no GST on Current Bank Account.

Is GST registration required for a company with more than 20 lakhs?

Yes, Registration would be required if your turnover is more than 20 Lakhs (10 Lakhs for special category states other than State of Jammu & Kashmir). Also refer to section 24 of CGST Act, 2017 for compulsory registration.

Who is eligible for GST registration under Section 24?

As per the said notification, any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, except, – a. persons required to take compulsory registration under section 24 of the said Act;

When is GST registration required for special category States?

In case of ‘special category states’, registration is required if his aggregate turnover in a financial year exceeds Rs. 10 lakhs – first proviso to section 22 (1) of CGST Act [renumbered vide CGST (Amendment) Act, 2018, w.e.f. 1-2-2019]

When do I have to start charging GST/HST on my taxable supplies?

Your effective date of registration is no later than the beginning of the month after you are no longer a small supplier. You have to start charging GST/HST on your taxable supplies starting on your effective date of registration. On February 1, 2020, you started a business that sells candles. You made the following sales: