About more than 85% Farmers in India are mostly small and marginal with landholdings of less than 2 hectares. Indian farmers to adopt the latest technologies it is not viable as This fragmentation in farmers and farmlands leads to disorganization. Economies of scale can be unlocked and the livelihood of farmers can be improved day by day only by the organization of these farmers into producer companies. Thus the concept of Producer Company Registration is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.

There are various types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through ecommerce operators are required to mandatorily obtain GST registration irrespective of turnover limit. The GST turnover limit for regular GST registration for service providers and goods supplier is provided below.

Service Providers: As per section 22(1) of CGST Act, every supplier shall be liable to be registered in the State or Union Territory (other than special category states) from where he makes supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs. 20 lakhs.

In case of ‘special category states’, registration is required if his aggregate turnover in a financial year exceeds Rs. 10 lakhs – first proviso to section 22(1) of CGST Act [renumbered vide CGST (Amendment) Act, 2018, w.e.f. 1-2-2019]

Goods Suppliers:  person who is engaged in exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

• The supplier should not be providing any kind of services.
• The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Kerala and Telangana.
• The supplier should not be involved in the supply of ice-cream, pan masala or tobacco.

Special Category States: The status of Special Category is allotted to eleven states, by the Government. They are given below:

1. Arunachal Pradesh
2. Assam
3. Jammu and Kashmir
4. Manipur
5. Meghalaya
6. Mizoram
7. Nagaland
8. Sikkim
9. Tripura
10. Himachal Pradesh
11. Uttarakhand