GST registration is required for businesses whose Businesses whose turnover exceeds INR 40 lacs (Normal States) & INR 20 lacs (Special category states). GST registration is a process of indirect taxation which is applicable in most of the countries in the customised form, which has also replace VAT the erstwhile indirect taxation method in India.
What is an aggregate turnover?
Aggregate turnover includes the total value of:
- All taxable and non-taxable supplies
- Exempted supplies
- Exports of goods/services of a person having the same PAN.
When is the GST registration mandatory?
Categories of persons required to be registered compulsorily irrespective of the threshold limit:
- Businesses having turnover less than 1.5 Crore
- Inter-State supply of goods & services.
- Entities registered under previous indirect tax regime viz. VAT
- Persons who supply goods/services on behalf of other registered taxable persons
whether as an agent or otherwise
- Persons who supply goods/services other than branded services, through electronic
- An aggregator who supplies services under his brand name or his trade name.
- Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.
- Individuals registered prior to GST under Excise, VAT, Service tax etc.
- Those paying tax under Reverse Charge Mechanism
- E-commerce supplier
- Agent of a supplier or a input service provider
- Business having a turnover of not less than 40 lakh (normal state) & 20 lakh (North Eastern state).
GST Registration can be Compulsory Registration or Voluntary depending on certain factors. A dealer can register himself as a Regular dealer, Non-resident taxable person, composite dealer, Casual taxable person or Input service distributor.
What will be the effective date of GST registration?
Where the application for GST registration has been submitted within thirty (30) days from the date on which the person becomes liable to registration, the effective date of registration shall be the date of his liability for registration.
Where an application for GST registration is submitted by the applicant after thirty days (30) from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In the case of suo-moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of the order of registration.
Read Other Blogs: Impact of GST on Export of Goods and Services
Important facts about GST Registration number:
- The taxpayer must hold a valid PAN Card & Aadhaar card.
- Registered dealer must collect GST from customers and pay it to the government.
- Prepare tax invoice or Bill of Supply as per GST Invoice Rules.
- The applicable GST rate must be charged on the goods or services supplied.
- The Registered dealer can claim the Input Tax credit (ITC) on all purchases and expenses.
- GST Registration cannot be cancelled before the expiry of one year from the effective date of registration in case of voluntary registration.
- The Registered dealer must file the necessary GST returns based on the type of registration and turnover limit.