No GST Registrations For Businesses With Annual Turnover Upto Rs 40 Lakhs

Ministry of Finance on 24th August 2020 notified the following changes:

  1. The businesses with an annual turnover of up to Rs 40 lakhs are now exempt from GST. Initially, the GST exemption limit was Rs 20 lakhs. (Earlier as per notification No.10/2019 – CT, dated 7th Mar 2019, w.e.f 01.04.2019, persons engaged in exclusive supply of goods and whose aggregate turnover in the financial year doesn’t exceed Rs 40 lakhs have led granted exemption from the registration). Now with this recent notification, exemption limit is same for both Goods & Services,
  2. The businesses with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1% tax.