Understanding the taxability of goods and services also includes knowing whether a good or service is exempted from GST registration. Upon knowing this, applicants can get clarity on several other factors. Essentially, the GST exemption limit for businesses depends on their annual aggregate turnover.
Previously, businesses with an annual turnover of up to Rs.20 lakhs did not need to register for GST. The amount was Rs.10 lakhs for North-eastern or hilly states like Meghalaya, Sikkim, Mizoram, Arunachal Pradesh, Nagaland, Himachal Pradesh, Manipur, Assam, Tripura, Uttarakhand, and Jammu & Kashmir.
However, as per the GST council meeting on 10th January 2019, the values doubled for Micro, Small, and Medium Enterprises (MSMEs) in both cases.
In addition to this, certain supplies of goods and services fall under the GST registration exemption list. Let’s understand this better by referring to the following section.