SUB GST p5.5

Exemption from compulsory GST Registration on interstate Supply

18 May 2020

As per Section 24(1), compulsory GST registration required if a person makes Interstate Supply even if his aggregate Turnover is below the specified exemption limit and are exempt from GST registration under section 22(1)

Under GST, the supply of goods or services from one to another state called Interstate Supply 

It is between:-

Two different statements

Two different Union territories

State and Union territories

In addition to this, the supply of goods imported into India till they cross the custom station is also classified as interstate supply. Also, the supply of goods or services to or by a special economic zone developer or a special economic zone unit is defined as a special economic zone.

From such compulsory registration rule government has granted some exemption as well here are 3 exemptions from registration:

Exemption 1 In case of the supply of services, a person making inter supply of service is not required to register if his aggregate turnover is less than Rs.20/10 lakhs.

Exemption 2 Person engaged in the supply of handicraft goods making interstate supply is exempt from registration if the aggregate value of all supplies is less than a specified exemption limit.

Exemption 3 Person engaged in Job work services making Interstate supply is exempt from registration if the aggregate value of all supplies is less than the specified exemption limit.