GST Registration is Compulsory
In India, GST (Goods and Services Tax) registration is compulsory under the following circumstances:
1. Threshold Limit:
If your annual aggregate turnover of taxable supplies (goods or services) exceeds the prescribed threshold limit, Compulsory GST registration.
The threshold limit varies based on the state in which your business operates. As of September 2021, the threshold limit for most states is Rs. 40 lakhs for goods and Rs. 20 lakhs for services. However, some states have a lower threshold of Rs. 10 lakhs for goods and Rs. 20 lakhs for services.
2. Inter-State Supplies:
If your business involved in making supplies of goods or services across different states in India, Compulsory GST registration, regardless of the turnover.
This means that businesses engaged in inter-state trade or e-commerce activities are required to register for GST irrespective of their turnover.
3. Specific Business Categories:
Certain categories of businesses mandated to obtain GST registration, regardless of their turnover. This includes businesses engaged in e-commerce, agents of suppliers, input service distributors, and businesses liable to pay reverse charge.
4. Taxpayers Registered under Previous Laws:
If you were previously registered under the pre-GST tax laws, such as VAT, Excise, Service Tax, etc., you need to migrate to GST registration. It is mandatory to obtain GST registration if you were registered under the old tax regime.
5. Casual and Non-Resident Taxable Persons:
Casual taxable persons or non-resident taxable persons conducting business in India required to obtain GST registration, regardless of turnover.
It’s important to note that the threshold limits and requirements for GST registration may change over time. It’s advisable to refer to the official GST portal or consult a qualified tax professional for the most up-to-date information and guidance specific to your business situation.
To visit: https://services.gst.gov.in
FAQs
1.Who needs to register for GST?
- Businesses with an annual turnover of over ₹20 lakh (₹10 lakh for special category states) are required to register for GST.
2. Is GST registration compulsory for interstate sales?
- Yes, any business involved in the supply of goods or services across state borders must register for GST, regardless of turnover.
3. Is it mandatory for e-commerce sellers to register for GST?
- Yes, all e-commerce sellers and operators need to register for GST, irrespective of turnover.
4. Do service providers need to register for GST?
- Yes, service providers must register if their annual turnover exceeds ₹20 lakh (₹10 lakh in special category states).
5. Is GST registration required for casual taxable persons?
- Yes, anyone who supplies goods or services occasionally (casual taxable person) must register for GST, even if turnover is below the threshold.
6. Are agents of suppliers required to register for GST?
- Yes, agents or intermediaries of suppliers must register for GST, regardless of turnover.
7. Is reverse charge mechanism applicable for GST registration?
- If you’re required to pay tax under the reverse charge mechanism, GST registration is mandatory, even if your turnover is below the threshold.
8. When is GST registration compulsory for non-resident taxpayers?
- Non-resident taxable persons must register for GST if they supply goods or services in India, regardless of turnover.
9. Is registration compulsory for businesses providing taxable supplies online?
- Yes, anyone supplying taxable goods or services through an online platform must register for GST.
10. What happens if I don’t register for GST when required?
- Failure to register can result in penalties and fines, and you may also be liable to pay back taxes with interest.
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