Exemption & Remedies under GST
There are basically two types of exemption and remedies available to the taxpayer, one is basic exemption and another is the composition scheme. Let us understand both:
1. BASIC EXEMPTION UNDER GST
As per the GST law, if any person supplies goods or services for the value of more than Rs. 20 lakh, then GST registration shall be mandatory and he shall have to apply for GST registration within 30 days.
Further, the basic exemption of Rs. 20 lakh is not applicable for north eastern states including Jammu & Kashmir (J&k), Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizroram, Nagaland, Sikkim, Tripura, Himanchal Pradesh and Uttrakhand. For these states, the basic exemption limit is Rs. 10 lakh.
2. COMPOSITION SCHEME (LEVY) UNDER GST
To avail the composition scheme, one must apply to the department only if the total turnover is less than 50 lakh.Further, that person should not sell outside the state. The composition rate may be 2.5% in case of manufacturer and 1% in case of others.