Entities engaged in businesses of ice cream, pan masala and tobacco will not be eligible for the proposed higher threshold limit for mandatory registration and new composition scheme for services under the Goods and Services Tax (GST) that will come into effect from 1st April.
Under the new mechanism, threshold for goods suppliers in 20 States and the one Union Territory (with Assembly), i.e. Delhi, for mandatory registration will be ₹40 lakh, against the present ₹20 lakh.
Similarly threshold for mandatory registration will be ₹20 lakh as against ₹10 lakh at present, for North-Eastern States (barring Assam) and the hilly State of Uttarakhand. Telangana and the Union Territory of Puducherry will continue to have threshold of ₹20 lakh.
It has also been decided to introduce a new Composition Scheme for services. Businesses with annual turnover up to ₹50 lakh will be eligible for the new scheme. According to the draft notifications, businesses of three categories of goods and their supply have been excluded. The first category is ice cream and other ice, whether or not containing cocoa, the second category is of pan masala and the third category comprises tobacco and manufactured tobacco substitutes.
