GST Registration: Who Needs to Register for GST?

GST, or Goods and Services Tax, is a comprehensive tax implemented in India on the supply of goods and services since July 1, 2017. To comply with the tax regulations, GST Registration is necessary for any individual or entity whose turnover exceeds the prescribed threshold limit. However, it’s important to note that the threshold limit varies for goods and services and may also differ from state to state. Additionally, the type of GST Registration chosen also affects the applicable threshold.

Threshold Limit for Regular Taxpayers:

For regular taxpayers, GST registration becomes mandatory when their turnover surpasses Rs 40 lakhs for goods and Rs 20 lakhs for services. This threshold applies to all states, except for Telangana and special category states. In Telangana, the threshold limit for goods is set at Rs 20 lakh. In special category states, the threshold is Rs 20 lakh for goods and Rs 10 lakh for services.

Threshold Limit for Composition Taxpayers:

Composition taxpayers must register for GST when their turnover reaches Rs 40 lakh. Upon registration as a Composition Taxpayer, they are restricted from collecting taxes from customers or issuing tax invoices.

Mandatory GST Registration Cases:

There are certain cases where GST Registration is mandatory, regardless of turnover. These cases include:

1. Any person who makes an interstate supply of goods
2. Any person who is providing services to customers outside the country
3. Casual taxable person
4. Who is required to pay tax under the reverse charge mechanism?
5. Agents supplying taxable goods or services on behalf of another registered taxable person.
6. e-commerce operators
7. Tax deduction at source
8. Non-resident taxable persons
9. Input service distributors
10. Suppliers providing database access or online information from outside India to non-registered taxable persons within India.
11. Any other class of persons notified by the Government based on the recommendations of the GST Council

Also Read: Aadhaar Authentication in GST Registration: Process and Requirements

All the mentioned categories must obtain GST Registration when they meet the threshold criteria or fall under the mandatory cases. Once registered, individuals or entities must maintain proper books of accounts, issue required documents for various transactions, pay taxes, and file returns. For streamlined processes in filing returns and managing books of accounts, taxpayers can consider using CaptainBiz, a cloud-based and mobile billing software provided by GSTN to small taxpayers free of cost across India.

CaptainBiz recommends checking for turnover from time to time for first-generation entrepreneurs and obtaining GST Registration if they cross the threshold. In a few cases, even voluntary registration have helped the entrepreneurs expand their businesses if their targeted customer base was B2B (Business to Business).

CMA Mallikarjuna Gupta Director - Indirect Taxes

CMA Bhogavalli Mallikarjuna Gupta is a qualified CMA with over two decades of experience in the areas of Tax Advisory, Litigation, ERP Development & Implementation. He is also regular faculty at NACIN, RTI, ICAI and various other colleges.

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Finance GST Income Tax