- Take input tax credit
- Make interstate sales without restrictions
- Register on e-commerce websites
- Limited compliance
- Less tax liability
- Having Turnover of more than 40 lakhs in case of Goods
- Having Turnover of more than 20 lakhs in case of Services
- Voluntary Registration
- Inter State Sales
- Non-Resident taxable person
How to get a GST Registration?
The name Goods and Services Tax (GST) itself reflects that it is a taxation system that takes into account - the goods and the services. This means GST is applicable on both the tangible goods as well as the intangible services while maintaining the balance of both the Central and the State Government independent revenues through a dual mechanism of GST.
On 1st July, 2017 marked the commencement of the GST regime that brought a comprehensive, multi-stage, and destination-based tax that is charged on every value addition. GST regime shall enhance transparency in the indirect tax framework and is expected to bring down the rate of inflation and cascading effect of tax. It will also be a hike to investment inflows, e-commerce and “Make in India” approach.
GST is based on the “One Nation One Tax” theme and consists of tax rate slabs that start with a minimum of 0% and extend till the highest of 28%.
Even today, people are not very much familiar with this tax mechanism and to get acquainted with the same they avail Chartered Accountant service.
The GST regime has made it mandatory for all the business entities engaged in buying or selling goods or services or both to get themselves registered under the provisions of the GST Act. Entities carrying out operations without GST Registrations are ineligible for GST collection from Consumers and they are not allowed to claim an input tax credit paid.
So, to claim the ITC and to collect the GST from customers, GST registration is compulsory. GST, therefore is a destination-based tax applicable on all transactions, involving supply of goods / services for a consideration.
GST Turnover Timit
GST registration is mandatory for casual taxable persons or persons making supplies through e-Commerce operators and non-resident taxable persons, irrespective of turnover limit. Such dealers must avail GST Advisory Service or take help from professionals like CA, CS and lawyers to understand what exactly the Act wants to convey.
“Casual taxable person” means anyone who occasionally undertakes transactions involving supply of goods or services or both in the course of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no particular place of business.
Turnover Limit or service providers and goods supplier for regular GST Registrations are mentioned in following points:-
For Goods Suppliers: - As per the respective notification, registration under GST is mandatory for any person who is occupied in the exclusive supply of goods and whose aggregate turnover exceeds Rs.40 lakhs in a Financial year. The supplier must fulfill the below-mentioned conditions:-
- It should not be engaged in the supply of any services
- Must not be engaged in intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Mizoram, Nagaland, Puducherry, Meghalaya, Sikkim, Telangana, Tripura, and Uttarakhand
- Not involved in the supply of pan masala, tobacco or ice creams.
Turnover limit for GST registration falls down to Rs.20 lakhs and Rs.10 lakhs in case of non-fulfillment of the above-mentioned conditions and special category states, respectively.
This means when the supplier does not meet the above-mentioned conditions, it becomes mandatory for him to obtain GST registration when the turnover exceeds Rs.20 lakhs. For the northeastern and other states mentioned in the Act, the GST registration limit is Rs.10 lakhs.
GST registration consultants provide the platform for smooth & easy registrations under it. They take care of the different turnover limits which mandate the registration under the Act
Here is the list of the special category states under GST:-
- Arunachal Pradesh
- Jammu and Kashmir
- Himachal Pradesh
The initial GST registration limits were raised in the 32nd GST Council meet for the supply of goods.Let's have a quick glance at the initial threshold limits as well as new thresholds that require the mandatory registration of a firm under the Act.
|Aggregate Turnover||Registration Mandatory||Applicability|
|Initial Threshold – For the supply of Goods or Services|
|More than Rs.20 lakh||Yes – For Normal Category States||Till March 31, 2019|
|More than Rs.10 lakh||Yes – For Special Category States||Till March 31, 2019|
|New Limits – For Sale of Goods|
|More than Rs.40 lakh||Yes – For Normal Category States||From April 1, 2019|
|More than Rs.20 lakh||Yes – For Special Category States||From April 1, 2019|
|New Limits – For Providing Services|
|The threshold limits for Service Providers have remained unchanged.|
Explanation of Aggregate Turnover under GST
Aggregate Turnover under GST =(Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).
It is a PAN-based calculation, so even if one person has multiple places of business, all must be considered and summed to arrive at the aggregate turnover.
Voluntary registration under GST
Any person whether natural or artificial regardless of business turnover can obtain GST registration at any-time. Many businesses that do not meet the aggregate turnover limit also get themselves registered under it. GST registration consultants can suggest you the best advice as to whether or not it's beneficial to get your business registered under GST.
Major reasons for obtaining voluntary GST registration are:
What are the documents required under GST?
If you wish to avail services for the GST registration, you need to study the document requirements for GST registration. For now, we can have an understanding of the documents that we need:
Content: The CBIC Provisional credit (i.e.10%) reduced to 5% under Rule 36(4) w.e.f. 1 January 2021
Interest not payable if GST return filed belatedly but amount deposited in Cash Ledger within due
FAQs on GST Registration
The GST Registration must be applied within 30 days from the date of Incorporation in case of non individual person and in case of individual from 30 days of starting a business. If the turnover during the year at any point of time exceeds the prescribed limit then also it is mandatory to have a GST Registration.
Yes, one can register itself using the residential address as the place of business. You do not require any of the commercial address to get registered under GST.
Yes, it can be taken either way. GST Act holds no bar on the same.
Every entity registered under the GST whether through its act or voluntarily has to file GST returns regularly even though no transaction has been undertaken during the month or year, i.e. one has to file NIL returns as well.