GSTTaxation

Who Is Eligible for GST Registration?

To kickstart the GST registration process, businesses must first determine whether they are eligible to register under the latest indirect tax regime.  Here’s an in-depth look at the intricacies outlined in the GST eligibility criterion.

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GST Registration: an Overview

The Goods and Services Tax, abbreviated as GST, is a value-added tax levied on services and is an indirect tax that is paid when consumer goods or services. Furthermore, companies selling goods and delivering services must pay their fair share of GST as well. GST amalgamates several different central and state indirect taxes and thereby generates additional revenue for the government all the while eliminating the cascading effect of indirect taxes. Likewise, GST registration was implemented in April 2017, and all qualifying enterprises were required to register under the new regime.

Taxable Person Under the GST Regime

A ‘taxable person’ under GST is anyone who conducts business in India that requires to have registration under the GST Act. A taxable person is anyone who engages in economic activity, including trade and commerce.

Individuals, HUFs, companies, firms, LLPs, an AOP/ BOI, any corporation or Government company, body corporate incorporated under the laws of a foreign country, co-operative societies, local authorities, governments, trusts, and artificial juridical persons all come under the purview of the term ‘Person’.

GST Registration Checklist

  • GST registration numbers are PAN-based, hence a PAN is mandatory to obtain registration.
  • Every individual must apply for registration in each state in which he is liable within thirty days of being liable to registration. The assessee must acquire separate registration for each State, as GST registration will be done on a state-by-state basis. Further, the assessee may even obtain separate registration for each of his ‘business verticals’ in the same State.
  • Casual/non-resident taxable persons must apply at least five days before the start of their business.

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Understanding the Mandatory Registration Requirement Under the GST Regime

The following categories of individuals and organisations must mandatorily undergo GST enrollment in India.

  • 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.
If total sales are not more than ₹20 lakh, e-commerce sellers/aggregators do not need to register. Notification No. 65/2017 – central tax, dated 15 November 2017.

To know more about GST eligibility criteria and kickstart the GST enrollment process today, get in touch with Vakilsearch’s GST specialists without further ado!!

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