PERSONS LIABLE TO PAY GST - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

6. PERSONS LIABLE TO PAY GST 6.1. GST is payable at the prescribed rate by the registered taxable person on the supply of goods and/or services. The CGST/SGST is payable on all intra-State supply (within the State) of goods and/or services and IGST is payable on all inter-State supply (from one State to another State) of goods and/or services. 6.2. The threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of goods is Rs. 40 Lakh (Rs. 20 Lakh in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand). The threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services is Rs. 20 Lakh. The aggregate turnover shall include the aggregate value of all taxable supplies, exempt supplies and exports of goods and/or services, excluding GST and shall be computed on all India basis. 6.3. However, the taxpayers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits. taxpayers making inter-State supplies of goods or paying tax on reverse charge basis (where the recipient of the supplies is liable to pay tax) shall not be eligible for threshold exemption, meaning that such taxpayers are liable to pay GST, irrespective of their turnover. 6.4. In respect of the notified supply of goods and/or services, the tax is payable by the recipient of such supplies, as prescribed under Section 9(3) of the CGST Act, 2017. This system of payment of tax by the recipient is known as reverse charge mechanism . 6.5. In respect of certain supplies of services through the Electronic Commerce (e-commerce) Operator, GST is neither payable by the supplier nor the recipient of such supplies, but by the e-commerce operator, as provided in Section 9(5) of the CGST Act, 2017. The list of services notified in Notification No. 17/2017-CT (Rate) dated 28.06.2017, as amended, are as under (i) services by way of passengers by a radio-taxi, motorcab, maxicab, motor cycle or any other motor vehicle, except omnibus; (ii) services by way of providing accommodation in hotel, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the supplier of such service through e-commerce operator is liable for GST registration; (iii) services by way of house-keeping, such as plumbing, carpentering, etc, except where the supplier of such service through e-commerce operator is liable for GST registration; (iv) supply of restaurant service, other than the services supplied by restaurant, eating joints, etc., located at hotel providing accommodation with declared value of any unit above Rs. 7500/- per unit per day.