GST Registration Exemption for Job Workers Providing Inter-state Supply of Services

As per the GST Act, job workers providing inter-state supply of services were required to register under GST, irrespective of their turnover. However, the recent notification by the Government of India provides relief to job workers by exempting them from GST registration if their turnover is less than Rs. 20 lakhs.

This exemption is applicable to job workers who are engaged in providing inter-state supply of services and are not engaged in making any taxable supply of goods. The exemption is also applicable to job workers who are providing services to a registered person who is located outside India.

The notification provides much-needed relief to small job workers who were facing a burden of complying with the GST registration requirement. This exemption will also help in reducing the compliance cost for small businesses and job workers.

It is important to note that job workers who are engaged in making taxable supply of goods are still required to register under GST, irrespective of their turnover. Furthermore, job workers who have already registered under GST can avail the benefit of this exemption by opting for cancellation of the registration.

Overall, this exemption is a welcome move by the Government of India and will provide much-needed relief to small job workers who were facing a compliance burden under GST.