GST Registration Requirement
In June 2016, the Finance Ministry, Government of India had made public the much awaited Model GST law that happens to define a ‘taxable person’ and then further goes on to describe how GST will be put into force across India.
Who needs to register for GST then?
- If you are a person or a group of persons carrying out business in any nook and corner of the Indian State and boast of a goods and services business with an aggregate turnover of over 9 lakhs in a financial year, then you need to register for GST. The limit has been kept such that the small suppliers are provided the much needed relief.
- If you are in North Eastern States including Sikkim, you need to obtain a GST registration if the worth of taxable supply of your goods and services amounts to over Rs. 4 lakhs.
Here, ‘aggregate turnover’ means the sum total of all non-taxable and taxable supplies, exempt supplies and exports of goods and/or services of a person possessing a PAN, and is calculated on all India basis. It excludes taxes under the CGST Act, SGST Act and the IGST act and does not explicitly include the worth of supplies on which tax is imposed on reverse charge basis.
Who needs to register irrespective of anything?
In addition to the above classes, there are classes and categories who need to register regardless. For them, no turnover clauses apply. They are listed below.
- Persons involved in inter-State supply which is taxable. There’s no threshold here.
- Persons who are needed to disburse tax under reverse charge, irrespective of the threshold
- Casual taxable persons. It refers to a person who intermittently undertakes transactions that involves supply of goods and/or services to further their business, done by himself/herself or through an agent, in a taxable area where he doesn’t have a fixed place to carry out his/her business.
- Persons who are required to deduct tax
- Taxable persons who don’t reside in India, irrespective of the threshold
- Persons, who as agents or otherwise, supply goods and/or services on behalf of other taxable persons who are registered under the law of the land
- Persons who supply goods and/or services, other than branded services, through electronic commerce operator, irrespective of the threshold
- Input service distributor, i.e. an office of the supplier of goods and / or services which receives tax invoices u/s 23 towards receipt of input services and then issues tax invoices for the purposes of issuing the credit of CGST (SGST in State Acts) and / or IGST paid.
- Aggregator who has his own brand name or his own trade name to prove services, irrespective of the threshold
- Each and every e-commerce operator, regardless of the threshold
- Other person or group of persons as may be notified from time to time by the Central Government or a State Government upon the recommendations of the Council.
If that makes for a complicated read, here’s a table to simplify it for you:
|Nature of the supply||Registration Required?|
|Taxable inter-state supply||Yes|
|Exempted inter-state supply||No|
|Intra-state supply (up to Rs. 9 lacs)||No|
|Intra-state supply (exceeding Rs. 9 lacs)||Yes|
|Intra-state supply (up to Rs. 9 lacs) exempted Inter-state supply of any value||No|
|Casual Taxable person||Yes|
|Reverse charge – for personal use up to prescribed limit||No|
|Reverse charge – for personal use beyond prescribed limit||Yes|
|Reverse charge – Other than personal use||Yes|
|Persons required to deduct TDS providing intra state supply up to Rs. 9 lacs||Yes|
|Input service distributor||Yes|
|Agent or the like||Yes|
|Intra-state supply up to Rs. 9 lacs as an agent||Yes|
|Electronic commerce operator||Yes|
|Supply through electronic commerce operator – Branded or otherwise||Yes|
|Aggregator – supplying services||Yes|
|Intra-state supply – Exempted Rs. 5 lacs||Yes|
|Intra-state supply – Taxable Rs. 5 lacs||If the aggregate turnover exceeds Rs. 10 lacs|
So, the government clearly underlines who needs to register and who don’t. Hope this article has summed it up for you but to delve further, here are a few points to note:
- If you are an agriculturist, you are exempted from GST registrations.
- You must apply and register for GST within 30 days of becoming liable to do so. Different procedures exist depending on whether you are a new customer or whether you are already registered under one of the States. In case of the latter, remember that you still need to register although there is a process that will simplify the hard yards.
- PAN card is a must to register. No PAN card, no eligibility.
- Special provisions exist if you are a casual taxable person or a non-resident taxable person
- Registration certificate that are issued will be valid for 90 days from the date of registration and could even be extended further depending on the need but they are needed to deposit tax in advance on the basis of estimated tax liability.
19. Registration Statutory Provision:
(1) Every person who is liable to be registered under Schedule III of this Act shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that if the person, other than an Input Service Distributor, is registered under an earlier law, it shall not be necessary for him to apply for fresh registration under this section and he shall follow the procedure as may be prescribed in this behalf.
(2) Notwithstanding anything contained in sub-section (1), a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
(3) A person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
(4) Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under subsection(1), (2) or (3).
(4A) Notwithstanding anything contained in sub-section (4), a non-resident taxable person may be granted registration under sub-section (1) on the basis of any other document as may be prescribed.
(5) Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed.
(6) Notwithstanding anything contained in sub-section (1), any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries and any other person or class of persons as may be notified by the Board / Commissioner, shall obtain a Unique Identity Number, in
the manner prescribed, for the purpose(s) notified, including refund of taxes on the notified supplies of goods and/or services received by them. Registration 119 Indirect Taxes Committee.
(7) The registration or the Unique Identity Number, shall be granted or, as the case may be, rejected after due verification in the manner and within such period as may be prescribed.
(8) The proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person reasonable opportunity of being heard.
(8A) A certificate of registration shall be issued in the prescribed form, with effective date as may be prescribed.
(9) A registration or a Unique Identity Number shall be deemed to have been granted after the period prescribed under sub-section (7), if no deficiency has been communicated to the applicant by the proper officer within that period.
(10) Notwithstanding anything contained in sub-section (7), any rejection of application for registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a rejection of application for registration under the SGST Act / CGST Act.
(11) The grant of registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a grant of registration or the Unique Identity Number under the SGST/CGST Act provided that the application for registration or the Unique Identity Number has not been rejected under SGST/CGST Act within the time specified in
(12) The Central or a State Government may, on the recommendation of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.