Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST,
Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017
Mandatory to register under GST when annual turnover exceeds INR 40/20 lakh or supply goods and
services inter-state or through an e-commerce platform.
Any person or entity irrespective of business turnover can obtain GST registration at any-time. Hence,
GST registration is obtained by many businesses in spite of not reaching the aggregate turnover limit.
Some of the main reasons for obtaining voluntary GST registration are: To improve the business
credibility To satisfy the requirements of B2B customers To claim input tax credit benefit
Aggregate turnover = (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). Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.
1 Previous Law Converted Taxpayer – if any individual or companies are registered under the previous tax law like service tax or VAT or cst etc then they have required the New GST Registration.
2 Turnover basis if your business sales or turnover cross more than 40 lakh rupees in a year then its required the GST Registration. For some state like North-Eastern States, J&K, Himachal Pradesh, and Uttarakhand the limit is only 10 lakh rupees in a year.
3 Event or Exhibition In the GST Act its called the casual taxpayer. If they don’t have any permanent place of business then they can apply for the casual taxpayer under the GST Registration. It’s valid for a maximum of 90 days (3 months).
4 Non-Resident Indian (NRI) if you are a non-resident person of India or handling the business of NRI in India then it’s required to apply for the GST Registration Online.
5 The agent of Suppliers or Input tax Distributor – if you are an input tax service distributor then it’s required to apply for the GST Registration to carry forward the benefit of an input tax credit under GST Law.
6 Reverse Charge Mechanism – Under GST Law there is term reverse charge mechanism so if you fall under that category then its required the GST registration.
7 E-commerce Sellers if you are an E-commerce Sellers of the leading aggregator portal like Flipkart or Amazon then yes you need the GST Registration.
8 E-Commerce Aggregator Portal – if you are thinking to start your own E-commerce business then for ECommerce Business Registration you need GST Registration for the same.
9 Outside India Online Portal if you are software as a service company and providing information database access from outside India to Indian visitors then it’s required to register under the GST.