Business liable to get registered under GST

The whole system of GST depends on the people who are supposed to get registered under GST.  I would rather say, registered people are the backbone of any taxation system. Our government has broadly specified two categories of people who are required to register under GST, they are:

1. Normal Category
2. Mandatory Category

Let’s explore these categories……..

Normal Category

Following businesses are required to get registration under GST:

1. Supplier whose aggregate turnover exceeds 20 lakh in a financial year(Rs.10 lakh for North East states)
2. Person holding registration under any Indirect tax law (VAT, service tax, excise duty etc.)
3. Successor, in case of succession of business registered under GST
4. Transferee, in case of demerger

Aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess. (Source: CBEC Resources. )

Relevant FAQ

Q: My aggregate turnover is more than 20 lakh and my business is covered under RCM. Should I take Registration? 

A: Although the value of RCM supplies continues to be a part of the ‘aggregate turnover’, Currently supplier of 100% RCM supplies are exempted from registration.

Q: I have a turnover of Rs.22 lakh from  NIL rated goods. Is registration required?

A: No, supplier of 100% NIL rated or exempted supplies are exempted from GST registration.   

 

Mandatory Category

For the following persons, GST registration is mandatory:

1. A person making an inter-state(one state to another state) taxable supply of a good. Inter-state supplier of services has been excluded by notification no 10/2017 IGST.
2. Casual taxable persons making taxable supply
3. Persons who are required to pay tax under reverse charge
4. Every electronic commerce operator like Amazon.
5. Goods Supplier on electronic commerce platform
6. Non-resident taxable person making taxable supply
7. Any person who is required to deduct TDS under GST
8. Person making taxable supply on behalf of other taxable people
9. Input service distributor
10. Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person
11. Any other person or class of persons as may be notified by the Government on the recommendation of the council.

However, any person can get GST registration even if he doesn’t fall under any of the above categories. There is a confusion among people that what will happen when my turnover doesn’t exceed 20 Lakh and I take GST registration voluntarily???

Answer: Once you get registered for GST you are required to comply all the procedural element of GST like filing of returns, maintaining books of accounts, issuing proper invoice etc. as normal taxpayer and would also become liable to pay GST. It would be better to cancel registration.

Is there any time limit for registration under GST?

A person should take a Registration, within 30 days from the date on which he becomes liable to registration. A Casual Taxable person and a non-resident taxable person should, however, apply for registration at least 5 days prior to the commencement of business.

How to get registration under GST when I have branches/unit in different states?

There is no concept of centralized registration under GST. If a person is operating in different states, with the same PAN number, he is liable to take registration for each of the states where he had a business operation. A person having multiple business verticals in a State may (not mandatory) obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.

Person Exempted from GST Registration (u/s 23 CGST)

1. Exclusive Supplier of NIL rate goods/services like grain, salt, jaggery etc.
2. Exclusive Supplier of non-GST goods like petrol & Alcohol
3. An Agriculturist cultivating land only.