GST registration- Applicability
Who is liable to get registered under GST?
If you’re supplying goods, registration is mandatory when your annual turnover exceeds Rs. 40 Lakhs. For service providers, this limit is Rs. 20 Lakhs. Special category states have reduced limits — Rs. 20 Lakhs for goods and Rs. 10 Lakhs for services.
What is aggregate turnover?
As per section 2(6) of the CGST Act, 2017, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.
Is GST registration mandatory for companies? Yes, if they cross the turnover limits. Wondering about GST registration for services or goods? Find out here. Don’t miss the details on mandatory registration and applicable turnover limits.
Does aggregate turnover include the value of inward supplies received on which RCM is payable?
No, it doesn’t. The aggregate turnover doesn’t factor in the value of inward supplies for which reverse charge tax is payable.
Whether aggregate turnover include turnover of supplies on which tax is payable by the recipient under reverse charge?
In such cases, the supplier’s aggregate turnover does include the turnover of outward supplies for which the recipient pays tax under reverse charge.
Who are the persons compulsorily required to get registered?
As per section 24 of the CGST Act, 2017, the following persons are required to get registered irrespective of their aggregate turnover:
(i) Those making inter-State taxable supplies.
(ii) Casual taxable persons making taxable supplies.
(iii) Individuals obligated to pay tax under reverse charge.
(iv) Individuals paying tax under section 9(5) for specified intra-state supplies.
(v) Non-resident taxable persons making taxable supplies.
(vi) Individuals are required to deduct tax under section 51.
(vii) Persons making taxable supplies on behalf of others, acting as agents or otherwise.
(viii) Input Service Distributors.
(ix) Individuals supplying goods or services through e-commerce operators are subject to tax collection at source under section 52.
(x) Every e-commerce operator is required to collect tax at source under section 52.
(xi) Individuals supplying online information and database access or retrieval services from outside India to someone in India.
(xi) Individuals supplying online money gaming from outside India to someone in India.
(xii) Any other person or class of persons notified by the Government based on the Council’s recommendations.
Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?
If the individual is exclusively engaged in the 100% supply of goods not subject to GST, registration is not necessary.
If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs?
No, registration is not mandatory for a person dealing with 100% exempted supplies, regardless of turnover.
Is registration necessary if only interstate supply of Nil rated goods is being made?
Registration is not compulsory under section 23 of the CGST Act if exclusively supplying Nil-rated goods.
My all outward supplies are export services. In this case is it compulsory to register under GST?
Yes, registration is required for GST to claim refunds since exports are zero-rated.
Conclusion
In conclusion, understanding GST registration is vital for businesses and individuals. The mandatory requirements, turnover limits, and specific scenarios clarified here provide a comprehensive overview.
Whether it’s determining the need for registration based on turnover or navigating obligations for various types of supplies, this guide simplifies the complexities of GST.
Stay informed, comply with regulations, and make informed decisions for a seamless GST registration process.
