Who Needs to Register for GST in India

Goods and Services Tax (GST) is an indirect tax which has been implemented in India on 1st July 2017. The major objective behind the implementation of GST is to make a uniform tax in India. GST is basically based on the Canadian model, which is now a part of most of the countries in India. GST has to be registered by the taxpayers in India, as all the earlier taxes are replaced with GST. 

So here in this article let us understand who needs to register for GST in India.

Who Needs to Register for GST in India

A ‘taxable person’ under GST, is a person who carries on any business at any place in India and who is registered or required to be registered under the GST Act. Any person who engages in economic activity including trade and commerce is treated as a taxable person.

‘Person’ here includes individuals, HUF, company, firm, LLP, an AOP/ BOI, any corporation or Government company, body corporate incorporated under laws of a foreign country, co-operative society, local authority, government, trust, an artificial juridical person.

Below mentioned are the types of taxable people who have to do GST registration:

• The One who makes an inter-state taxable supply

The business holder who supplies goods or services from one state to another comes under inter-state supply and they have to register GST registration.

• Casual taxpayer

The business holder who occasionally supplies goods and services and does not have a specific business place has to apply for GST in India.

• The one who pays tax under reverse charge

For most goods and/or services, the liability for payment of tax rests with the supplier. However, in some cases, the liability to pay tax (GST) would rest with the recipient of the goods or services, instead of the supplier are known as Reverse charge.

• Non-resident taxable person

A Non-resident taxable person is any person who occasionally supplies goods or services to recipients in India, but who has no fixed place of business or residence in India. All non-resident taxable persons are mandatorily required to obtain GST registration, irrespective of aggregate turnover criteria.

• Input Service Provider

Input Service Distributor means a supplier of goods or services which receives tax invoices for the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services.

• E-commerce operator

Electronic commerce is the supply of goods or services, including digital products over a digital or electronic network. An electronic commerce operator is any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce. All electronic commerce operators are mandatorily required to obtain GST registration, irrespective of turnover.

GST Registration for Individuals

An individual is the one who is registered or is liable to be registered under the law would be a taxable person in GST. A person would be liable to be registered under the law under two categories:

1. A person who is liable to be registered mandatorily.

2. A person liable to be registered provided an aggregate turnover of supply of goods or services or both exceeds the threshold limit.

Generally, a person is liable to pay tax on the supply of goods or services made by him

Is GST registration mandatory for Service Providers

Service sectors are the backbone of India’s economy, therefore GST implementation has brought various changes for them. Service providers in India have to register under GST when they fall under specific criteria.

• Interstate and Intrastate Service provider

When a service provider has operations in one state then it is Intrastate Service Provider and GST is going to be excellent because without too much compliance burden it tends to get more input-tax credits. 

• Threshold limit for GST registration

The one who supplies goods from one place to another with the annual turnover of rupees 40 lakhs and the one who supplies services from one place to another with annual turnover of rupees 20 lakhs requires GST registration

What is the turnover limit for GST registration

• Normal Taxpayer

• Special states (North-Eastern States)

• Composition scheme

The threshold of annual turnover for the composition scheme was  increased to Rs.1.5 crores and the threshold limit is Rs.75 lacs for North-Eastern states.

GST registration procedure is very tedious, So to make it simple you can consult LegalDocs experts and get your GST registration done within a short span of time.