Sales tax exempt upto ...? - for UP state

This query is : Resolved 

08 July 2011 Hi,

I am located in Noida, UP.
Sales tax would be applicable after 2 Lacs of sales p.a.
Is that correct?
Please advise.

17 July 2011 awaiting reply

23 July 2025 For **Uttar Pradesh (UP) Sales Tax**—especially as per rules around 2011—the threshold limit for **sales tax registration and applicability** depends on the nature of business and turnover.

### Key Points for UP Sales Tax Exemption:

* **Threshold Limit for Registration:**
Generally, if your **annual turnover (sales) is below Rs. 2 Lakhs**, you may not be required to register for VAT/sales tax.

* **Threshold Limit for Tax Liability:**
Sales tax liability arises only when your **turnover exceeds Rs. 2 Lakhs per annum** (for most goods/businesses).

* This means:

* If your **sales are below Rs. 2 Lakhs annually**, you are typically exempt from sales tax.
* Once turnover crosses Rs. 2 Lakhs, you must **register and pay VAT/sales tax**.

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### But keep in mind:

* Some goods may have different limits or exemptions.
* Check if your specific business or goods have special provisions.

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**So, yes**, your understanding is generally correct — sales tax applies after crossing Rs. 2 Lakhs turnover p.a. in UP.

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If you want, I can help you find the exact current provisions or the relevant notifications from UP Commercial Tax Department. Just ask!


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