However, like in most other nations, these beneath the threshold limit may be allowed to be registered voluntarily to facilitate gross sales to other registered producer/sellers, limit aggressive distortions and avoid inequalities. Additional, the threshold exemption limit must be uniform for both CGST and SGST and across states. The EC is of the view that composition / compounding scheme for the purpose of GST ought to have an upper ceiling on gross annual turnover and a flooring fee with respect to gross annual turnover. In particular there can be a compounding minimize-off at Rs.50 lakh of gross annual turnover and a ground price of 0.5% throughout the states. The scheme would also allow option for GST registration for sellers with turnover beneath the compounding minimize-off. The task Power on GST with a view to scale back administrative and compliance burden, steered that small sellers with annual aggregate turnover of goods and companies between 10 lakh to forty lakh may be allowed to go for a Compounded levy of 1 %, every towards CGST and SGST.

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