Previously, all businesses and services were exempt from GST. Businesses with a turnover of up to Rs 40 lakh are now free from GST. The Composition Scheme allows businesses with a turnover up to Rs 1.5 crore to pay only 1% tax. The exemption limit for services is still 20 lakhs. Also, service providers with up to 50 lakhs in revenue can use the composition plan and pay only 6% tax.
Regulated entities are those whose annual sales exceed INR 40 lakh. If your annual sales are less than INR 40 lakh, you can register for GST to benefit from the Input Tax Credit. Also, anyone who transacts in interstate services or goods must register for GST. None of the above apply.