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Is GST Registration Mandatory?

When a company's total revenue exceeds a certain threshold, it is subject to GST. The entire sales value of taxable and exempt goods and services, as defined by Section 22 of the CGST Act, is aggregate turnover.

GST Turnover Threshold

If your total turnover exceeds ₹40 lakh (₹20 lakh for special category states) for sales of goods or ₹20 lakh (₹ 10 lakh for special category states) for sales of services, you must register for GST.

Following is a list of the levies that were replaced by GST:

  • Value-added tax (VAT) or sales tax
  • Octroi
  • Entertainment tax
  • Tax on lottery or betting or gambling
  • Purchase tax
  • Luxury tax
  • Service tax
  • Additional excise duty
  • Central excise duty and so on

GST Tax Slabs

The GST rate for various products and services in India is divided into five slabs: 0% GST, 5% GST, 12% GST, 18% GST, and 28% GST. On a regular basis, the GST Council examines the items covered in each slab rate to ensure that they remain relevant to industry demands and market trends. Basic commodities are taxed at lower rates under the existing regime, whereas luxury products and services are taxed at higher rates.

Farmers and entities engaged only in the business of supplying goods or services that are not subject to tax or fully exempt from tax, as well as entities engaged solely in the business of selling and distributing agricultural products, are not required to register under GST.

In India, the following persons and organizations are mandatory required to undergo GST registration:

  • Businesses involved in inter-state supply of goods and services
  • Non-resident taxable person
  • Casual taxable person
  • Taxpayers under the reverse charge mechanism
  • Businesses registered under old tax services, such as VAT, excise, and service tax
  • Any business engaged in the supply of goods whose turnover in a fiscal year exceeds ₹40 lakhs for states in the normal category who have opted for the new threshold (₹20 lakhs for special category states and those in states which have not opted for the new threshold, for example, the state of Telangana)
  • Any business engaged in the rendering of services whose turnover in a fiscal year surpasses ₹20 lakhs in normal category states (₹10 lakhs for special category states)
  • Agents of a supplier
  • Input service distributors
  • Businesses that supply online information, database access, and/or retrieval services from outside India to a person/business within the country
  • E-commerce aggregators
  • Businesses that supply through an e-commerce aggregator
  • Other individuals and businesses as notified by the central/state govt, on recommendation by the GST Council.

Make Mandatory GST Registration Easy With Vakilsearch

The procedure for GST registration: requires candidates to complete a number of steps. Additionally, users must ensure that they follow the steps with tedious care in order to avoid further delays in the application’s processing.

Vakilsearch provides high-quality GST registration services that make it simple for taxpayers to finish their .enrollment

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