Most asked questions from the Government on GST.

Question 20

What are the benefits available to small tax payers under the GST regime?

Ans. Tax payers with an aggregate turnover in a financial year up to [Rs.20 lakhs & Rs.10 Lakhs for North Eastern states and special category states] would be exempt from taking registration under GST

Further, a person whose aggregate turnover in the preceding financial year is less than Rs.1 Crore (75 lakhs for 9 special category states viz

1. Arunachal Pradesh, 2. Assam, 3. Manipur, 4. Meghalaya, 5. Mizoram, 6. Nagaland, 7. Sikkim, 8. Tripura, and 9. Himachal Pradesh)

can opt for a simplified composition scheme where tax will payable at a concessional rate on the turnover in a state.

States/ Union territory would be called the State GST (SGST)/ UTGST.

[Aggregate turnover shall include the aggregate value of all taxable supplies, exempt supplies and exports of goods and/or services and exclude taxes viz. GST.]

Aggregate turnover shall be computed on all India basis. For NE States and special category states, the exemption threshold shall be [Rs. 10 lakhs].

All taxpayers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits.

Tax payers making inter-State supplies of goods or paying tax on reverse charge basis shall not be eligible for threshold exemption.