Telangana: GST & labour compliance

GST in Telangana

A sale where the supplier and the place of supply are both in Telangana 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

Telangana did not adopt the higher ₹40 lakh limit for goods, so a goods-only supplier must register at ₹20,00,000, the same as service providers.

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 Telangana 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

Telangana is in the first QRMP group, so small taxpayers on quarterly filing submit GSTR-3B by the 22nd 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 Telangana GSTIN

Every GSTIN issued in Telangana starts with 36. 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 36 but fails the checksum was mistyped. Check one in the GSTIN validator.

Professional tax in Telangana

Telangana charges professional tax on monthly income. The top slab is ₹200 a month once income passes ₹20,000, and the Constitution caps the total at ₹2,500 a year.

Paid by the 10th of the following month.

Register on the Telangana Commercial Taxes portal (tgct.gov.in).

See all Telangana slabs and the calculator.

Labour Welfare Fund in Telangana

Telangana runs a Labour Welfare Fund: ₹2 per employee from the employee and ₹5 from the employer each year, deducted in december.

By 31 January for the previous calendar year.

Work out Telangana LWF in the calculator.