GST registration is required if your annual aggregate turnover exceeds 20 lakhs rupees. In certain cases, you will need a GST number on a mandatory basis even if your turnover is within the threshold limit.
What is an aggregate turnover?
Aggregate turnover includes the aggregate value of:
(i) all taxable and non-taxable supplies,
(ii) exempt supplies, and
(iii) exports of goods and/or service of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, and the IGST Act.
Aggregate turnover does not include the value of supplies on which tax is levied on a reverse charge basis and value of inward supplies.
When is GST number required on the mandatory basis:
Categories of persons required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons
whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services other than branded services, through electronic
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name or his trade name; and
k) 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.
Registration of GST number can be either Compulsory Registration or Voluntary Registration 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 registration?
Where the application for registration has been submitted within thirty 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 registration has been submitted by the applicant after thirty days 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.
Important facts for Registration of GST number :
• The taxpayer must hold a valid PAN since GST Identification Number
• The Registered dealer needs to collect GST from customers and pay it to the government
• The Registered dealer should 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 on all purchases and expenses.
• GST Registration cannot be canceled before the expiry of one year from the date of effective registration in case of voluntary registration.
• The Registered dealer must file the necessary GST returns based on the type of registration and turnover limit.