Inter-state supply of services up to ₹ 20/10 lakh allowed without GST registration

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Is GST registration mandatory for interstate supply of services?

Inter-state supplies of services up to ₹ 20 lakh allowed without GST registration

In the current digital era, numerous small service providers and freelancers offer their services online, catering to clients both within their home states and abroad, all from the comfort of their homes. However, it's essential to consider the tax implications associated with conducting business in this virtual landscape.

A very common and important question arises whether such interstate supply of services required GST registration if turnover is below ₹ 20 lakh or (₹ 10 lakh for special category states)? 

As, we knows GST registration is not mandatory (except certain cases u/s 24 of CGST Act)  if aggregate turnover in a financial year does not exceeds threshold limit. CBIC issued Notification No. 10/2017 – Integrated Tax dated 13/10/2017 to address the concern. Crux of the notification is as follows:

Person making interstate supply of taxable services and having all India pan basis turnover up to threshold of ₹ 20 lakh (*₹10 lakh for special category states) in a financial year have been exempted from obtaining compulsory GST registration. 

Whether GST registration is compulsory for supplying services through e-commerce operators?

Vide notification 65/2017-Central tax dated 15/11/2017, if person making taxable supply of services [except supplies specified u/s 9(5)] through e-commerce operator and having aggregate turnover below ₹ 20 lakh or (₹ 10 lakh for special category states), in a financial year has been exempted from obtaining compulsory GST registration. 

However, please note this relaxation is not available for supply of goods. Hence, person making interstate supply of goods (except notified handicraft goods) requires compulsory GST registration irrespective of quantum of aggregate turnover.

Special category states: Manipur, Mizoram, Nagaland & Tripura 

*For the special category states threshold limit is ₹ 10 lakh.

Notification No. 10/2017 – Integrated Tax dated 13/10/2017 

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