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venkat b. (owner)     03 April 2020

Applicability of gst registration

sir, i want to know whether GST registration is required for a small business in sarees for which turnover is less than rs.20.0 lac but having inter state goods purchase but not interstate sale. all the sale is intra state only. 

with regards. 

venkat batchu

 5 Replies

Palak Singh   03 April 2020


The GST Council, in order to reduce the compliance pressure on small businesses, has set a limit of annual turnover of Rs.20 lakhs for registration under GST. Businesses with turnover below this threshold do not require GST registration.

Turnover includes actual sales and sales by way of samples and that needs to be kept in mind while calculating your turnover.

But to answer your question, there are certain exceptions to this rule. Firstly, if the supply of good is inter-state, then GST registration is mandatory irrespective of the value of turnover. Also, this threshold limit is only applicable to manufacturing and not services.  

Hope this answers your question!


Palak Singh

venkat b. (owner)     03 April 2020

thx a lot for your kind reply, sir 

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

GST is needed For the Proprietorship Business Registration .

Procedure of Proprietorship Business Formation : -

Selection of Firm Name . TAN No. 

Allotment .

MSME Registration .

GST Registration .

As, in the Procedure of Proprietorship Formation It’s Mandatory to do GST Registration .


T. Kalaiselvan, Advocate (Advocate)     03 April 2020

There is no need to register a proprietorship firm anywhere, except GST now. If you are eligible under exempt categories or which not to register. It should not be an issue. but apart from GST there are other regulation that abide you, need to take care of them too. Professional tax, shop & factory establishments act.


venkat b. (owner)     05 April 2020


thx a lot for your kind reply.


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