THRESHOLD LIMIT & ADMINISTRATION – GST

For the purpose of assessment and administration of different assesses, following categorization has been recommended:-
Threshold limit (common for goods and services) can be allowed somewhere between Rs. 10 lacs and Rs. 20 lacs.
Gross turnover of goods upto Rs. 1.5 Crores may be assigned exclusively to the State;
Gross turnover of services upto Rs. 1.5 Crores may be assigned exclusively to the Centre.
Gross turnover of above Rs. 1.5 Crores may be assigned to both the Governments – for the administration of CGST to the Centre and for the administration of SGST to the State.
In accordance with article 279(4)(d) of the 122^nd amendment bill, the GST council shall make recommendation to the union and the states on the threshold limit of turnover below which Goods and services may be exempted from GST.
The present threshold prescribed in different state VAT acts, below which VAT is not applicable, varies from state to state. The Threshold of Goods under state VAT varies from 5 Lacs to 20 Lacs and a lower thershhold for north eastern states and special category states.
A uniform State GST threshold across state is desirable. However, keeping in view the interest of small traders and small scale industries and to avoid dual control the Govt. might consider that the threshold for central GST for Goods may be kept at Rs. 1.5 Crore. This raising of threshold will protect interest of small traders.
The administration of the CGST would be given to the centre, and of the SGST to the states. That is the, the centre and state would have concurrent jurisdiction for the entire value chain and all tax payers, based on  thresholds for goods and services prescribed for the state and the centre.