some text
Home / Goods and Services Tax (GST) / Thresholds & Eligibility criteria under GST

Thresholds & Eligibility criteria under GST

Published On: Nov. 25, 2017 By:
List of Contents

Thresholds & Eligibility criteria under GST


The thresholds & eligibility criteria GST area unit usually arranged on the idea of combination turnover of an assessee. below GST law, it provides bound exemptions from paying tax, applying for registration, eligibility criteria to avail composition theme, the relevance of TDS provisions and demand of mentioning the HSN/ SAC codes, all of that relies on the combination turnover. Here, we have a tendency to area unit providing an entire guide to the thresholds and eligibility criteria that area unit mentioned in GST law.

Thresholds & Eligibility criteria GST

  1. Exemption from payment
  2. Registration
  3. Composition scheme
  4. TDS
  5. HSN/ SAC codes

Exemption from payment of tax

Taxpayers with Associate in Nursing combination turnover of Rs. twenty lakhs would be exempted from tax. For, North Indian states and Sikkim, the exemption would be Rs. 10 lakhs. Aggregate turnover shall embrace the mixture worth of all assessable and non-taxable/ non-GST provides, exempt/ Nil-rated produces and exports of products and/or services and exclude taxes beneath GST.


Every provider shall be vulnerable to be registered beneath GST Law within the State from wherever he/she makes an assessable provider products and/or services if his/her combination turnover exceeds thresholds mentioned on top of. However, sure classes are needed to urge registered compulsorily regardless of the thresholds: Composition Scheme Any person with the mixture turnover not exceptional Rs. Seventy-five lakhs (Rs. fifty Lakhs for the Northern States) shall be eligible to pay tax by composition theme No permit shall be granted to an assessable person beneath sure conditions:

  1. Persons creating any Inter-State assessable provide (e.g. from city to Maharashtra)
  2. Casual assessable person (No mounted place wherever GST is applicable)
  3. Non-resident assessable person (No mounted place in India)
  4. Persons World Health Organization are needed to pay tax beneath Reverse Charge.
  5. Persons World Health Organization are needed to deduct tax at supply.
  6. Agents of a provider.
  7. Input Service Distributor.
  8. Persons World Health Organization provide product or services through E-commerce Operator.
  9. Every E-commerce Operator (e.g. Flipkart, Amazon)
  10. A human World Health Organization provides services beneath his name.
  11. Any specialised Agency of the world organisation or any multipartite institution.
  12. who is engaged within the providing of services (except service of the restaurant); or
  13. who makes any provider of products that aren't leviable to tax beneath this Act; or (c) World Health Organization makes any inter-State outward providers of goods; or
  14. who makes Associate in Nursing provider of products through an e-commerce operator World Health Organization Is needed to gather tax at supply or
  15. who could be a manufacturer of such product as is also notified.

Tax Deduction at Source

Provisions for deduction at supply shall apply as notified beneath the act if the worth of providing a contract exceeds Rs. 2.5 lakhs. the worth of provisions shall be taken because the quantity excluding the tax indicated on the invoice. Deductor for the higher than purpose will be: The tax shall be subtracted at the speed of a hundred and twenty-fifths of payment created to the provider.

  1. Department or institution of the Central or authorities, or
  2. Local authority, or
  3. Governmental Agencies, or
  4. such persons or class of persons as is also notified.

HSN/ SAC codes

HSN/SAC code shall be mentioned in Tax Invoice also as equipped in Table twelve of kind GSTR-1. The taxpayers United Nations agency have turnover below the limit of Rs one.5 large integer can get to mention the outline of goods/service in situation of code. Whereas, the outline is elective for taxpayers United Nations agency are needed to furnish HSN/ SAC codes on the idea of combination turnover as below: Conclusion Thresholds and eligibility criteria mentioned by the Bharat Government is to spice up and profit the little and medium enterprises (SME’S). These SME’S can contribute to country’s gross domestic product and can facilitate in eradicating the unemployment.

  1. Less than Rs. 1.5 crores – HSN/SAC code isn't necessary (Hence, composition dealers might not be needed to specify HSN at the 2-digit level also).
  2. Rs. 1.5 crores to Rs. five crores – HSN code at minimum a pair of digit chapter level is necessary. SAC code is necessary.
  3. Above Rs. five crores – HSN code at minimum four digit chapter level is necessary. SAC code is necessary.
  4. For export turnover, 8-digit HSN code is necessary regardless of any of the higher than three classes.

Previous Comments

0 comments have been posted.

Have queries? Talk to an expert

Similar Posts


Got Questions? Ask Anand
Hi, I am Anand... I will be happy to answer your questions.

Give your questions here
Anand will reply with your answers.
Hi, I am Anand....I’ll be happy to answer your questions.
Want to know basics?
Click below or start typing to get questions!

Corporate Entity Registration
Proprietorship Registration
MSME or SSI Registration
Import Export Registration
Trademark Registration



Why Proworktree?


We are dedicated, qualified & experienced professional who have already trusted & established name among numerous happy clients.

24/7 Customer Support

Now get support through phone, email, live chat - 24/7, 365 days. email us your query at connect[at]proworktree[dot]com We are here always to assist you with our best support and commitment

Our Refund Policy

Not Happy with the service. then we can get your amount refunded as per terms & conditions apply. Please refer our Refund policy or contact us for any questions on same.