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A supplier of goods with turnover below Rs 40 lakh in most States, or Rs 20 lakh for services, need not register at all, unless a compulsory registration rule applies. Composition is an option only for registered persons.
GST
Do I need composition below the registration threshold
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Provisions
Sec 22(1), CGST Act 2017; Sec 24, CGST Act 2017; Sec 10(1), CGST Act 2017
Analysis
Example: a kirana in Indore with Rs 30 lakh sales, all local, need not register. If a wholesaler asks for a GSTIN, or sales head towards Rs 40 lakh, register and choose composition at 1 percent in REG-01. Some special category States have lower thresholds, so check your State.
Close
- Check your yearly turnover and State threshold
- Check whether any compulsory registration rule applies
- If not required, stay unregistered and keep records
- If you register, consider choosing composition in REG-01
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