Exemption limit for professionals in gst

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2016 As declared by the FM,threshold limit in GST is Rs.20 Lakh.(10 Lakh for Northeastern and Hill states) My query is :
1.This limit is applicable to small Traders.
2..Whether professionals like Doctors,Architects,CAs etc. are liable to pay service tax,if the gross receipts from their profession is below Rs.20 Lakh?
3.Please clarify me the exemption limit of Service Tax for Professionals under new GST law.

Thanks & Regards

GST Pitara

GST Pitara (Expert)

08 October 2016 The annual exemption threshold for levy of GST would be Rs. 20 lakh but, for the north-eastern and hill states, it would be Rs. 10 lakh, as decided in the first meeting of the GST Council.
1. This threshold limit will be applicable to every person irrespective of whether he is trader or service provider.
2. Every professional will be liable to pay SGST and CGST in the case of intra-state supply and, IGST in the case of inter-state supply, if there aggregate turnover in a financial year exceeds Rs. 20 lakh/ 10 lakh as the case may be.
(They will not be liable to pay service tax as from the date of applicability of GST Act, service tax will cease to apply).
3. The GST Act does not distinguish between a trader and a service provider, all it talks about is a supplier defined under section 2 sub-section 91 of the Act. So, Every supplier shall be liable to pay GST if his aggregate turnover in a financial year exceeds the annual exemption threshold of Rs.10 lakh for the north-eastern and hill states and Rs 20 lakh for rest of the India.

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2016 Thanks for the clarification.

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