Question:

In a major relief to micro, small and medium enterprises, the GST Council has recently increased the tax exemption limit per annum to:

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For competitive exams, remember both the old and the revised limits — questions often test recent policy changes.
Updated On: Aug 13, 2025
  • 20 lakhs
  • 30 lakhs
  • 40 lakhs
  • 60 lakhs
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The Correct Option is C

Solution and Explanation

The GST Council periodically revises tax exemption limits to support small businesses and reduce compliance burdens. In a recent move aimed at providing relief to micro, small, and medium enterprises (MSMEs), the annual turnover threshold for GST registration exemption was increased from \rupee 20 lakhs to \rupee 40 lakhs for suppliers of goods. This change allows smaller businesses to avoid the complexities of GST compliance and focus on growth.
This limit applies to most states, while certain special category states have different thresholds. Options (A) and (B) reflect earlier thresholds, and (D) overstates the exemption limit.
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