Himachal Pradesh: GST & labour compliance

GST in Himachal Pradesh

A sale where the supplier and the place of supply are both in Himachal Pradesh carries CGST plus SGST, split equally. A sale to a buyer in another state carries IGST instead, and that tax goes to the destination state.

Registration threshold

A business that supplies only goods can stay unregistered up to ₹40,00,000 of aggregate turnover. The higher limit is lost if you supply any taxable service, or deal in ice cream, pan masala or tobacco products; those businesses register at ₹20,00,000.

Inter-state sales of goods need registration from the first rupee, whatever the turnover. Use the registration checker for the other compulsory cases.

Composition scheme

Manufacturers, traders and restaurants in Himachal Pradesh can opt for composition up to ₹1.5 crore of turnover. Service providers have a separate ₹50 lakh limit. Composition dealers cannot sell across state lines or claim input tax credit.

Quarterly returns

Himachal Pradesh is in the second QRMP group, so small taxpayers on quarterly filing submit GSTR-3B by the 24th of the month after each quarter. Tax for the first two months of the quarter is still paid monthly by the 25th, through form PMT-06.

Reading a Himachal Pradesh GSTIN

Every GSTIN issued in Himachal Pradesh starts with 02. Characters 3 to 12 are the holder's PAN, the 13th counts registrations under that PAN in the state, the 14th is Z by default, and the 15th is a checksum. A GSTIN that starts with 02 but fails the checksum was mistyped. Check one in the GSTIN validator.

Professional tax in Himachal Pradesh

Himachal Pradesh does not levy professional tax on salaries. PT follows the employee's place of work, so a company based in Himachal Pradesh still deducts PT for staff working in states that levy it, such as Maharashtra or Karnataka.

Labour Welfare Fund in Himachal Pradesh

Himachal Pradesh has no Labour Welfare Fund deduction for private-sector salaries. PF, ESI and professional tax apply as usual — only the 16 states with a fund listed in the LWF calculator deduct it.