GST is a value-added tax on the supply of goods and services in India, introduced on July 1, 2017, to simplify the indirect taxation system.
Businesses supplying goods or services with a turnover above a certain threshold must register for GST.
However, there are other criterias as well.
This article will cover all the eligibility criteria for GST registration.
Different Eligibility Criterias for GST Registration in India
Turnover Threshold
The first and foremost eligibility criterion for GST registration is the turnover threshold.
If a business has a turnover of more than Rs.40 Lakhs and Rs. 20 lakhs(Special Category States) in a financial year, it is mandatory for them to get GST Registration.
Special Category States under GST
- Arunachal Pradesh
- Assam
- Jammu & Kashmir
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Himachal Pradesh
- Uttarakhand
Voluntary GST Registration
Even if a business does not meet the turnover threshold, it can still register for GST voluntarily. This is beneficial for businesses that want to claim input tax credit, as they can only do so if they are registered under GST.
Additionally, it helps businesses establish their credibility as registered entities.
Understand about Voluntary GST Registration in detail through our informational guide available at: Gst registration on voluntary basis
Businesses who do Interstate Supply
Businesses involved in the supply of goods or services across state borders are also required to register for GST, regardless of their turnover.
This is because such businesses are subject to Integrated Goods and Services Tax (IGST), which is levied on the supply of goods or services from one state to another.
Casual Taxable Person under GST
A casual taxable person is one who occasionally supplies goods or services in a taxable territory where they do not have a fixed place of business.
Such persons are also required to register for GST, regardless of their turnover.
Learn in detail at: All about Casual GST Registration
Non-Resident Taxable Person under GST
A non-resident taxable person is one who occasionally supplies goods or services in India but does not have a fixed place of business in the country.
Such persons are also required to register for GST before commencing their business operations in India.
If you want to fully grasp the criteria for Non-Resident Taxable Person under GST, our blog post offers a detailed explanation that will help you understand the topic. Read Here:
GST Registration Process for NRI Business
Input Service Distributor under GST
An Input Service Distributor (ISD) is a person who receives invoices for input services and distributes the credit to other business units within the same organisation.
Such persons are also required to register for GST, regardless of their turnover.
Reading our blog post will provide you with a detailed understanding of the eligibility criteria for Input Service Distributor under GST, enabling you to make informed decisions about your business. Read Here: Input Service Distributor under GST
TDS Deductor under GST
A Tax Deducted at Source (TDS) deductor is a person who is required to deduct TDS under GST laws.
Such persons are required to register for GST, regardless of their turnover.
Obtaining registration under GST is possible without a PAN by utilising an existing Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act.
Therefore, possessing a TAN is compulsory for registering under GST for TDS Deductors.
By reading our blog post, you can gain a comprehensive understanding of the TDS provisions and make sound decisions for your business. Read here: All you need to know about TDS Provisions under GST
E-commerce Operator under GST
E-commerce operators that are involved in the supply of goods or services through their platform are required to register for GST, regardless of their turnover.
Additionally, they are required to collect and deposit the tax on behalf of the suppliers.
Understand in detail at:
- GST Registration for E-Commerce collecting TCS
- How to get GST Registration if I am starting a new online business
Reverse Charge Mechanism under GST
Under the reverse charge mechanism, the recipient of goods or services is required to pay the tax instead of the supplier.
Businesses that are registered under the reverse charge mechanism are also required to register for GST, regardless of their turnover.
Wish to know more? Read our detailed post at: Reverse Charge under GST
Conclusion
In conclusion, GST registration is mandatory for businesses with a turnover above a certain threshold, businesses involved in interstate supply, casual taxable persons, non-resident taxable persons, ISDs, TDS deductors, e-commerce operators, and those registered under the reverse charge mechanism.
Additionally, businesses that want to claim input tax credit or establish their credibility as registered entities can also get GST Registration Online.
Moreover, If you want any other guidance relating to GST Registration online, please feel free to talk to our business advisors at 8881-069-069.
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