Eligibility for GST Registration

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gst eligibility

Goods and Services Tax (GST), the centralised tax we’d been awaiting for nearly a decade, is finally here. Being such a sweeping reform, as it combines nine existing taxes into one, much is not clear to businesses (of all types, from manufacturing and services to import-export and trading) small and large. So let’s start with a very basic one: do you need to register yourself?

Eligibility for GST Registration

1. Within GST, you will not be collecting tax on sales, but on supply. Therefore, stock transfer, freebies and even discounts will attract GST. If your current combined supply is over Rs. 25 lakh, you are eligible for GST Registration (if your business operates exclusively in the North Eastern states, Rs. 10 lakh).
2. If you already have a VAT Registration, Service Tax Registration or are registered under any of the laws that are to be subsumed by GST, you will be granted provisional registration. Once you are granted a provisional registration, you must apply for GST Registration within six months.
3. If you are supplying non-taxable products or are in the export business, you need to apply for GST Registration. This will even apply to those in the software business, the export of which was previously untaxed.
4. If you are supplying goods or services to another state, you need to apply for GST regardless of turnover.

Do You Need To Get Registered?

1. Do you supply goods/services of over Rs. 25 lakh (Rs. 10 lakh in case of North Eastern states, including Sikkim)?
2. Are you required to pay tax under reverse charge?
3. Are you purchasing or supplying any goods or services outside of the borders of your home state? (The Rs. 25 lakh limit will not apply).
4. Are you planning on selling on an e-commerce websites such as Flipkart, Amazon, Snapdeal or PayTM? (The Rs. 25 lakh limit will not apply).
5. Are you an input service distributor?
6. Are you an aggregator of goods or services, which are ultimately sole under your brand name? (The Rs. 25 lakh limit will not apply).
7. Are you an ecommerce website? (The Rs. 25 lakh limit will not apply?)
8. Are you required to deduct TDS under GST?

What is Required of Your Business?

Existing VAT/Service Tax/Excise Dealers: Provisional Registration will be granted and final enrollment should be completed within six months of receiving provisional ID.

New businesses: All businesses must apply for GST as soon as their supplies cross an aggregate value of Rs. 25 lakh (Rs. 10 lakh in North Eastern States). The same goes for freelancers, export oriented units, etc.

If you have any doubts regarding GST then please visit our GST help portal at https://vakilsearch.com/gst-india/gst-india-index and submit your requirement and our team will get back to you immediately.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.

31 COMMENTS

  1. The Basic Exemption limit under proposed GST is Rs. 20 lacs whereas in service tax it is Rs. 10 Lacs, whether a person registered under service tax but having turnover of less than Rs. 20 lacs needs to get himself provisionally registered under GST. If not, what should you do with the existing service tax registration after 30th june when GST is proposed to be implemented?

  2. Sir, I am running small Provisional store as a retailer. My turnover(Sales) is less than Rs.15 lakh per year. Whether I may have GST number or otherwise? Pl advise.

  3. Dear Sir,

    25 Laks Turnover ah (Or) Profit ah per year.

    and also we are doing advertising agency services what is the percentage of gst

  4. That mean once i have started business or work contract I have to register for GST. What about if my work contract value is below 5lakh per year..

  5. I am a vegetables supplier I daily buy vegetables from local market and supply then restaurants , though vegetables are exempted from all form of taxes do I need to register for GST

  6. The aggregate value of Rs 25 lakhs (10 lakhs for north east) mention here is per month or quaterly or per annum??

  7. my company is new & proprietor ship we are into export of jute & leather goods,
    do we required GST registration if yes what is the process & expenses

  8. Hi i have an ice cream shop where we prepare and sell our own in small scale only etail over the counter do i have to get a gst or vat no. Please assist.

  9. SIR IM A MANUFACTURER OF PAPAD WHICH HAS NIL TAX ON GST AND MY TURNOVER IS ABOVE 20LAKHS AND IM DOING INTERSTATE TRANSECTION. SO DO I NEED TO GET GST REGISTRATION?

  10. I have started a small business, it’s 6 months old now, and the return is very low for now, as it the business line is Fashion label….please can someone guide me…Do i have to register for GST and how.

  11. I AM URD TRADER MY ANNUAL TURNOVER IS 15 LAKH. I NEED TO TAKE GST REGISTRATION OR NOT OR CAN I WORK AS A URD.
    IF I REGISTER THEN I HAVE TO MAINTAIN ALL RECORD FOR 15LAKH HENCE I FEEL NO REGISTRATION, NO TAX, NO RETURN. WORK IN URD.

    JAI HIND

  12. I ‘m running a stationery shop with a turnover of RS. 5000 per day, do I need to register for GST, please let me know. ARINDAM CHAKRABARTY.

  13. Do we need to apply for GST if we are importing goods from outside India and selling here online and offline ?
    If yes, then please give me some knowledge in regards to this to start my business .
    Thanks 😊

  14. Sir I have sports shop… My aggregate turnover for year is near about 15 laks.. Does I need GST registration number.. Plz guide

  15. If a business man having mixed goods with all companies recharges then turnover limits are differ for such cases or same?.eg.a person having general goods sale 15 lakh per year and 12 lakh sale of recharges of all companies,but their is no margin in recharges.Is he eligible for GSTIN?

  16. hello. I run Goods Transport Agency, I already have service tax registration, in GST GTA fall under RCM provision, So I am not liable to pay gst, Am I requier to take registration under GST.?
    help on this

  17. My business is not crossing the limit of Rs. 20 lakhs , do I require a GST No: . Big Corporates , those who have GST no , they are asking for our GST NO:
    . On that case how will I rescue. Give me suggestions. Some are saying that if we dont provide the GST no; than they might not give any business in near future. We are having a service tax no: where we are giving nil service return as it doesnt cross the limit of RS. 10 lakhs(as per old rule regulations)from the last more than two years. This service tax was done due to customers pressure .And since I am having a service tax no: I have to make a GST No Account.

    Now what to do with the return. Will corporates accept bill if vendors are not having GST no:

  18. Sir i am retailer of Electric items my annual trunover is less the 15.00 lakh what i have need gst registration

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