WHEN IS GST REGISTRATION REQUIRED FOR YOUR BUSINESS IN INDIA?

With the successful roll out of GST in July, 2017, a lot of people especially Businessmen are now in the state of dilemma, confusion or have absolutely no idea of what they are supposed to do. I am also getting queries and questions regarding who needs GST Registration, what are the new Tax Rates, What are HSN and SAC Codes, will GST affect the business and what not!

So in the next few weeks I will be writing a series of posts on important aspects of GST from Businessmen point of view that will: A. Clear the Facts and B. Bust the Myths!

I am not going to go into details like when the concept of GST was founded and how many years did it take to construct the law, How GST is better or worse than previous taxes etc. I will stick to the aspects of GST which are relevant to a Businessman from practical point of GST Compliance.

If you want answers to any specific matters relating to any topic of GST; then you are always welcome to drop a message!

In this post let’s start from the start!  So, the Start…that would be….GST Registration.

WHO IS REQUIRED TO TAKE GST REGISTRATION IN INDIA

GST Registration India

If we study the aspects of requirement for GST registration,the GST Act has given various applicability scenario which though are not necessarily complex but surely are multifold.

The most basic trigger for GST Registration Applicability is Turnover.

(A) TURNOVER BASED APPLICABILITY:

If the aggregate turnover of a Businessman in a financial year exceeds Rs 20lakhs (Rs 10 lakhs for Northern East states), then that businessman has to register his business under GST.

For understanding what is included in turnover and what is not, we need to study the definition of “aggregate turnover”

Section 2(6) “aggregate turnover” : means the aggregate value of

  1. all taxable supplies,
  2. all non-taxable supplies,
  3. all exempt supplies and
  4. all exports of goods and/or services

of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be;

Explanation.- Aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.

Exemptions:

The following persons are not required to register under GST even if their aggregate turnover value crosses the threshold limits:

  1. A person doing exclusive supply of EXEMPTED goods or services.
  2. An Agriculturist doing agricultural activities as defined under the Act.

(B) GST REGISTRATION APPLICABILITY IRRESPECTIVE OF TURNOVER LIMIT:

If a Businessman’s aggregate turnover is below the threshold limit BUT he is covered in any of the following scenario then he is legally bound to take GST Registration in India.

  • Every businessman already having registration under Service Tax, VAT, Excise etc .
  • Businessman doing inter-state supply of goods and/or services.
  • Casual taxable person
  • Non-Resident taxable person
  • Agents of a supplier
  • Those paying tax under reverse charge mechanism.
  • Input service distributor
  • E-commerce operator or aggregator.
UPDATE: ALL BUSINESSMEN REQUIRED TO TAKE GST REGISTRATION (NEW) HAVE TO DO IT BEFORE 30TH JULY, 2017!

CONCLUSION:

If a Businessman is triggering even a single scenario from the above mentioned categories then he is required to opt for GST Registration.

However, one has to study the various aspects before deciding to opt for GST Registration so please do that or take the help of a Professional.

I Hope the post has helped in answering any GST Registration applicability queries you had.

If you have any questions for me then do leave a comment. And lastly, if you liked the post then please share it with your friends as well. Thanks!

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