Question 5: A person has paid GST on the value of Rs. 5 lakh, on the supply of services during the current Financial year as the interstate supply of service was not exempted. Now, after granting exemption by the Govt. on Inter state supply also. How would exemption of Rs. 20 lakh would be availed. Would he get fresh 20 lakh exemption or Rs. 5 lakh on which he has paid GST during the current F.Y. would be included in 20 lakh. Please clarify.


Answer It may please be noted that the thresh hold exemption given in GST is not like SSI exemption which was given in service tax and excise .

In case of service tax and excise the exemption was available for the first clearance irrespective of the fact whether the assesee was registered or not but in GST every registered person is liable to pay tax .

This is concluded as follow

Section 2(107) defines taxable person as follow

(107) 'taxable person' means a person who is registered or liable to be registered under section 22 or section 24;

It means you have to surrender registration for claiming exemption

Now coming to your question section 22 contains as follow


Section 22: Persons liable for registration.

(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees

As per above section the value of services already provided will be included in the value of of thresh hold limit. (REPLY dt. 23/1/2018)