Apply for GST Registration

Who has to obtain GST Registration

Registration under GST is mandatory once a taxable person crosses the minimum threshold turnover or starts a new business that is expected to cross the prescribed turnover. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalised. Turnover limits for GST registration is as under - 

A. Supply of Goods: Any person or entity who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs. 40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:

• Should not be providing any services.

• The supplier should not be engaged in making intra-state (supplying goods within the same state) supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripur and Uttarakhand.

• Should not be involved in the supply of ice cream, pan masala or tobacco.

If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.

B. Supply of services or mixed supplies: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs. 

Other than the aggregate turnover criteria, a taxable person required to obtain GST registration, in following cases - 

1. Inter-state supply of goods or services: Supplier supplies outside the State, is required to take registration irrespective of the size of his turnover. However, 

• Service providers providing inter-state services are exempted from registration if their annual turnover is below 20lakhs (10 lakhs for Special states. 20 lakhs for J&K). 

• Job workers (except in relation to jewelry, goldsmiths’ and silversmiths’ wares) making inter-state supply of services to a registered person are exempted from registration if their turnover is below 20lakhs (10 lakhs for Special states)

• Handicraft supplier making inter-state supply of goods are exempted from registration if their turnover is below 20lakhs (10 lakhs for Special states). In such cases they will also not be required to obtain registration as a casual taxable person in other States for making supply of the handicraft goods. 

2. Casual Taxable person: If supplier occasionally make supply of goods/services as a principal or agent or any other capacity, in a taxable territory, where GST applies but where he don’t have a fixed place of business, as per GST he will be treated as a casual taxable person.

3. Non Resident taxable person: When supplier occasionally make supply of goods/services as a principal or agent or any other capacity, in a taxable territory, where GST applies but don’t have a fixed place of business in      India, as per GST he will be treated as a non-resident taxable person.

4. Input Service Distributor.

5. Liable to pay taxes under Reverse Charge Mechanism.

6. Person who supplies via e-commerce aggregator (Service providers providing services on e-commerce platforms are exempted from registration if their annual turnover is below Rs. 20 lakhs (Rs. 10 lakhs for Special states. Rs. 20 lakhs for J&K).

7. Every e-commerce operator or aggregator (e-commerce sellers/aggregators need not register if total sales is less than Rs. 20 lakh).

8. Supplying goods on behalf of other persons (Agents of a supplier).

9. Supply of online information and data base access or retrieval (OIDAR) services from outside India to a non-registered person in India. A simplified registration Scheme is provided for OIDAR service suppliers. Instead of State-wise registration, he will take single registration for entire India either himself or through his appointed agent in India, and will pay IGST. The registration to and other GST compliance by the OIDAR service providers is exclusively administered by the Principal Commissioner of Central Tax, Bengaluru West and all officers subordinate to him.

10. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act.

11. Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST.

12. When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.

Registration not required in following cases –

A. Persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax. 

B. An agriculturist, to the extent of supply of produce out of cultivation of land.

C. If all the supplies being made by a supplier are taxable under reverse charge i.e. where total tax is payable by the recipient of the goods and / or services.