If you are running a business whose annual turnover exceeds the GST threshold limit, you are required to mandatorily undergo GST registration for your business, unless you are explicitly exempt from doing so. Keep reading to know more.
Registration is the most basic requirement in every tax system for identifying taxpayers and ensuring that tax is being paid by the citizen’s liable to pay the same. Registration of any business entity under the GST Law entails obtaining a unique number (GSTIN) from the relevant tax authorities for the purpose of collecting tax on behalf of the government and claiming input tax credit (ITC) for taxes paid on inward supplies. A person cannot collect tax from his customers or receive an input tax credit for tax paid by him unless he is registered under the GST regime.
GST Registration Threshold for Businesses
Upon addressing the demands of MSME, the GST Council revised the threshold restrictions for GST registration. These modifications were recommended in the 32nd GST Council meeting held on 10th January 2019. The CBIC was subsequently notified of the following –
- Any business engaged in the supply of goods whose turnover in a fiscal year exceeds 40 lakhs for states in the normal category that have opted for the new threshold (20 lakhs for special category states and those in states that have not opted for the new threshold, such as Telangana) must register for GST.
- Any business engaged in the rendering of services or mixed supplies of goods & services whose turnover in a fiscal year exceeds 20 lakhs in normal category states (10 lakhs for special category states) must register for GST.
|The aggregate turnover includes supplies made on behalf of a business vertical’s employees but excludes the value of those products where the owner himself is a job worker to that extent.|
Calculate the GST amount that needs to be paid before registering for GST using our GST calculator.
Two Important Advantages of GST Registration for Businesses
- GST has eliminated the cascading effect of ‘tax on tax’ on the sale of goods and services and has thereby reduced the intrinsic cost of items.
- GST has transformed the indirect taxation regime into a technologically driven wonder whereas everything from registration, return filings, refund applications, and notice responses can be completed online.
How Vakilsearch Can Assist in Obtaining GST Registration for Businesses?
Don’t think you can undergo the rigmarole of GST’s indirect taxation formalities? Apply for GST in 5 simple stages, as handled by Vakilsearch’s GST professionals:
- As a first and foremost step, you must get in touch with Vakilsearch ‘s GST specialists to assess your GST needs and requirements
- Our team of professional GST specialist’s will then ensure that all your paperwork and documentation is in order, so as to facilitate hassle-free GST enrollment.
- Our skilled legal team will then guide you through the GST registration process and complete the entire process on your behalf so that you can acquire your ARN and GSTIN as soon as possible.
- The Vakilsearch team will also help manage any difficulties in terms of compliance and physical verification that may occur during the registration process.
- In fact, our professionals can even help you out post-registration by handling all of your return filings to keep you GST compliant.
Get in touch with us today to join our network of exclusive corporate clientele!