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Who needs to register under GST?
Updated on : Jan. 27, 2023 - 5 p.m. 17 min read.
In India, businesses that are engaged in the supply of goods or services are required to register under the Goods and Services Tax (GST) laws if they meet certain thresholds. The registration thresholds are based on the annual turnover of the business. The thresholds are as follows:
- Businesses with an annual turnover of up to 20 lakhs (10 lakhs for North-Eastern states) are not required to register for GST. However, they have the option to register voluntarily.
- Businesses with an annual turnover of more than 20 lakhs (10 lakhs for North-Eastern states) are required to register for GST.
- Businesses that are engaged in inter-state supplies of goods or services are required to register for GST regardless of their turnover.
- Businesses that are engaged in the supply of goods or services through an e-commerce platform are also required to register for GST, regardless of their turnover.
- Businesses that are engaged in the supply of goods or services that are exempt from GST are also required to register for GST.
It's important to note that certain businesses such as casual taxable persons, non-resident taxable persons, persons paying tax under the composition scheme, and Input Service Distributors are also required to register for GST.
Who needs to register for GST in India?
The criteria for registration under the Goods and Services Tax (GST) laws in India include:
- Annual turnover threshold: Businesses with an annual turnover of more than 20 lakhs (10 lakhs for North-Eastern states) are required to register for GST. Businesses that are engaged in inter-state supplies of goods or services are required to register for GST regardless of their turnover.
- Nature of business: Businesses that are engaged in the supply of goods or services are required to register for GST. This includes manufacturers, traders, service providers, and e-commerce operators.
- Exempted goods and services: Businesses that are engaged in the supply of goods or services that are exempt from GST are also required to register for GST.
- Special registration: Certain types of businesses such as casual taxable persons, non-resident taxable persons, persons paying tax under the composition scheme, and Input Service Distributor are also required to register for GST.
- Voluntary registration: Businesses with an annual turnover of up to 20 lakhs (10 lakhs for North-Eastern states) are not required to register for GST, but they have the option to register voluntarily.
It's important to note that GST registration is mandatory for all businesses, whether they are small or big if they are engaged in supplying goods or services and are not eligible for the composition scheme. It's a good idea to seek advice from a GST professional or tax advisor if you are unsure about your registration requirements under GST.
Businesses For Whom GST Registration Is Mandatory Regardless Of Annual Turnover
There are certain businesses for whom GST registration is mandatory regardless of their annual turnover. Some examples are:
- Businesses engaged in inter-state supplies of goods or services: These businesses are required to register for GST even if their annual turnover is below the threshold.
- Businesses engaged in e-commerce: These businesses are required to register for GST regardless of their turnover, if they are engaged in the supply of goods or services through an e-commerce platform.
- Casual taxable person: A casual taxable person is a person who occasionally undertakes transactions involving supply of goods or services in a state where he has no fixed place of business. Such persons are required to register for GST.
- Non-Resident taxable person: A non-resident taxable person is a person who occasionally undertakes transactions involving supply of goods or services in India, but has no fixed place of business in India. Such persons are required to register for GST.
- Input Service Distributor: Input Service Distributor is a person who receives invoices for the services used by him for the purpose of furtherance of business and issues an invoice for the services so received. Such persons are required to register for GST.
- Person liable to pay tax under reverse charge: A person who is liable to pay tax under reverse charge is required to register for GST.
- Person required to deduct TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) under GST: Such persons are required to register for GST.
It's important to note that this is not an exhaustive list and it's a good idea to seek advice from a GST professional or tax advisor if you are unsure about your registration requirements under GST.
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