Question:medium

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

Updated On: Jul 15, 2026
  • 20 lakhs
  • 30 lakhs
  • 40 lakhs
  • 60 lakhs
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The Correct Option is C

Approach Solution - 1

This question checks awareness of a specific GST policy change meant to benefit small businesses. Examining each option:

  1. 20 lakhs: This was the pre-revision limit, so it cannot be the answer to what the limit was raised to.
  2. 30 lakhs: Not a figure associated with this particular GST Council decision.
  3. 40 lakhs: This is the revised annual turnover threshold up to which businesses became exempt from compulsory GST registration.
  4. 60 lakhs: Too high compared to the actual figure announced by the Council.

The Council's relief measure doubled the earlier exemption ceiling to Rs 40 lakh.

The correct answer is 40 lakhs.

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Approach Solution -2

The GST Council's 2019 relief measure specifically targeted suppliers of goods, distinguishing them from service providers, so keeping that distinction in mind while checking each figure helps confirm the right threshold.

  1. 20 lakhs: This remained the applicable exemption limit for service providers even after the revision, since the increase was aimed at goods suppliers specifically, so it does not answer what the limit was raised to.
  2. 30 lakhs: No part of the Council's decision set this figure as a threshold for either goods or services.
  3. 40 lakhs: This became the new exemption threshold specifically for suppliers of goods, which is the group the question is asking about.
  4. 60 lakhs: This figure was never part of the Council's actual notification for either category.

Keeping the goods-versus-services distinction in mind, 40 lakh is the threshold that was actually set for goods suppliers.

Therefore, the correct answer is 40 lakhs.

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