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Which businesses are exempt from registration and payment of tax?

Posted on: 30/Jun/2017 3:31:59 PM
At a time when the GST is set to get implemented tomorrow, it is not necessary for all the business establishments to register for enabling collection and remittance of taxes. A few entities are either exempted from the GST regime or they will have to pay fixed tax rate as per presumptive tax. Below are details of the business entities that are exempt.
 
All those involved in manufacturing or servicing with turnover lesser than Rs 20 lakh shall not pay GST. They are thus exempted from registering with the respective authority.
 
In businesses functioning in Assam, Arunachal Pradesh, Mizoram, Nagaland, Sikkim, Tripura, Manipur, Uttarkhand, and Himachal Pradesh, the limit is Rs 10 lakh.
 
Secondly, a few establishments need not pay any GST rate of composition depending on their annual sale of up to Rs 75 lakh.
 
The breakup in such cases is as follows:
1 percent for traders, 2 percent for manufacturers and 5 percent for restaurants. For business establishments at Arunachal Pradesh, Assam, Mizoram, Manipur, Meghalaya, Nagaland, Sikkim, Himachal Pradesh, and Sikkim, the limit is Rs 50 lakh.