Who Needs GST Registration?

Since the introduction of GST in India, businesses have to adhere to newer compliance requirements. One of the very important questions for entrepreneurs and professionals remains: Who requires GST registration? An understanding of the eligibility criteria is very important to avoid penalties and ensure smooth operations.

Businesses with Turnover Above Threshold Limits

Any business which crosses the specified turnover limits will have to register under GST-

• Rs 40 lakhs for businesses engaged in the supply of goods (?20 lakhs in special category states).
• Rs 20 lakhs for service providers (Rs 10 lakhs in special category States).

If annual turnover exceeds these gross limits, one has to compulsorily register under GST.

Inter-State Supply of Goods Or Services

If the other business sells goods or services across the state line, then GST registration is mandatory irrespective of turnover. For example, if an e-commerce seller is selling products across states, it has to get registration under GST.

E-Commerce Sellers and Aggregators

Any service or goods provider selling via an online marketplace such as Amazon and Flipkart, or a restaurant services aggregator platform like Zomato, needs to register under GST in order to legally operate. Even small sellers listing products or services on these platforms require GST irrespective of their turnover.

Casual Taxable Persons                                                                                                       A casual taxable person is a person carrying on business who occasionally supplies goods or services or both in a particular State or Union territory where he has no fixed place of business, either on his own account or through another person, in connection with the specified event, fair, etc. such persons require to get registration under GST before supply of goods or services or both.

Non-Resident Taxable Persons

Non-resident taxable persons will mean foreign entities supplying goods or services in India and thereby require to get GST registration even if such entities do not have a permanent place of business in India.

Businesses Under Reverse Charge Mechanism

When a business is required to pay GST in terms of an RCM, the business must get itself registered under GST regardless of turnover. RCM comes into application under certain event-based situations, such as when services are provided by unregistered vendors.

Agents and Input Service Distributors

An agent who's supplying goods or services to act as an agent on behalf of another taxable person and ISDs (input service distributors) that disperse tax credit to branches shall have to get themselves registered under GST.

Voluntary Registration

It is possible for a business to opt for voluntary registration even if it is below the threshold limit. This can be helpful in claiming input tax credit, looks good for business, and expands into bigger markets.

Conclusion

GST Registration is not for any large businesses. It applies to many other feats like interstate supply, selling over the internet, or acting as an agent. Knowing who needs to register for GST will help you remain within Indian tax laws and save unnecessary penalties.

If you are in any doubt about whether your business needs- to be registered under GST, then getting professional advice can remove the cloud of uncertainty while helping you register smoothly.