Important Keyword: GST registration exemption, GST 40 lakh limit, UTGST registration, small business GST rules, GST turnover threshold, GST goods suppliers exemption, Union Territory GST notification,
Words: 958 Read time: 5 minutes.
Table of Contents
[F.No.354/25/2019-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 7th March, 2019
Notification No. 02/2019 - Union Territory Tax: To give exemption from registration for any person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakhs.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R (E).- In exercise of the powers conferred by clause (vi) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter referred to as the “said Act”), the Central Government, on the recommendations of the Council, hereby specifies the following category of persons, as the category of persons exempt from obtaining registration under the said Act, namely,-
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, -
- persons required to take compulsory registration under section 24 of the said Act;
- persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table;
- persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and
- persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act.
Table
| Sl. No. | Tariff item, sub- heading, heading or Chapter | Description |
| (1) | (2) | (3) |
| 1 | 2105 00 00 | Ice cream and other edible ice, whether or not containing cocoa. |
| 2 | 2106 90 20 | Pan masala |
| 3 | 24 | All goods, i.e. Tobacco and manufactured tobacco substitutes |
2. This notification shall come into force on the 1st day of April, 2019.
(Gunjan Kumar Verma)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 02/2019 - Union Territory Tax
Q1: What is Notification No. 02/2019 – Union Territory Tax?
Answer:
It provides GST registration exemption to small traders dealing only in goods with turnover up to ₹40 lakh.
Q2: From when is this applicable?
Answer:
From 1 April 2019.
Q3: Who is eligible for exemption?
Answer:
Exclusive goods suppliers whose turnover ≤ ₹40 lakh.
Q4: Does this apply to service providers?
Answer:
❌ No. Service providers must follow separate limits.
Need help? 👉 GST Registration: https://finodha.in/online-gst-registration/
Q5: What if I sell both goods and services?
Answer:
Then exemption may not apply. Mixed supply generally requires GST registration.
Q6: Are tobacco sellers covered?
Answer:
❌ No. Tobacco is specifically excluded.
Q7: Is ice cream seller eligible?
Answer:
❌ No. Ice cream businesses must register regardless of turnover.
Q8: Can I voluntarily take registration even if turnover is less?
Answer:
Yes 👍
But then you must:
File returns
Pay GST
Follow compliance
👉 Simplify filings with GST Return Filing:
https://finodha.in/gst-return-filing/
Q9: What if my turnover crosses ₹40 lakh later?
Answer:
You must apply for GST registration immediately once the limit crosses.
Q10: Does this apply in all states?
Answer:
This notification applies to Union Territories. Some special category states may have different rules.
Q11: Do I need to file NIL returns if not registered?
Answer:
No. Without registration, no GST compliance is required.
Q12: What about compulsory registration under Section 24?
Answer:
If you fall under Section 24 (like interstate supply, e-commerce operator, etc.), you must register even if turnover is low.
Q13: How do I calculate aggregate turnover?
Answer:
Include:
Taxable supplies
Exempt supplies
Exports
Exclude:
GST itself
Q14: Is composition scheme better than exemption?
Answer:
Depends:
Exemption → No GST at all
Composition → Pay small tax but fewer returns
👉 Talk to Finodha GST Compliance Expert:
https://finodha.in/gst-compliance/
Q15: How can Finodha help small businesses?
Answer:
Finodha can help you with:
GST registration
Returns
Compliance
ITR filing
Company setup
👉 Start here:
https://finodha.in/setup-business/
🎯 Conclusion
Notification No. 02/2019 – Union Territory Tax is a big relief for small traders.
If your business turnover is below ₹40 lakh and you sell only goods, you can:
✅ Avoid GST registration
✅ Reduce compliance burden
✅ Save costs
✅ Focus on growth
But always check eligibility carefully.
👉 Need expert guidance?
Consult Finodha GST Experts today!
Download PDF: Notification No. 02/2019 - Union Territory Tax
More Information: https://taxinformation.cbic.gov.in/
Read more interesting articles:
