Tuesday, May 23, 2017


             Sub-clause (d) of clause (4) of Article 279A of the Constitution has required the Goods and Services Tax Council to provide "threshold limit of turnover" below which goods and services would have been exempted from goods and services tax (GST) in following terms:
"(4) The Goods and Services Tax Council shall make recommendations to the Union and the States on—
(d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax;"
            The Constitution has also required the GST Council to make its recommendation on GST Model Laws in the same article. On the basis of these recommendations, Laws were to be enacted by the respective legislatures. Here two things are noteworthy:
(i) It was mandatory for GST Council to make its recommendations; and
(ii) "threshold limit of turnover" was entry point for GST. Word "threshold" has specific meaning. "Threshold" means entry point or Dehalij (देहली,  , प्रवेश द्वार,   दहलीज़,  देहरी,   डेवढ़ी,  चौखट,  दहलीज़ ). Laws could not have been made applicable to persons whose turnover would have been below such limit of turnover.
My quest is: HAS such "threshold limit of turnover" has been provided in any of the GST Laws? i.e. CGST Act, SGST Act, IGST Act, etc. If not, then are not these laws against the spirit and in violation of the provisions of the Constitution.
            My assessment is that no such threshold limit has been provided in the Acts. Limit of aggregate turnover of 20 or 10 lakh rupees is for fixing tax liability and not for granting exemption from GST applicability. Secondly, section 24 of the Act makes it mandatory for certain people to obtain registration irrespective of  their turnover. I am also of the view that desired provision would have been enacted in section 23, of the Act, which provides exemption from registration liability.

 Kindly oblige me by expressing your own views.

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