GST Registrations in India

With the growing landscape of the Goods and Service tax act, 2017 over the period of more than 7 years, the GST registration has always been the topic in talks among the professionals. The council from time to time has recommended the possible measures to simplify the registration process and simplify the requirements for obtaining GST registration. With this article, we have covered in detailed all the aspects of GST registration including its applicability, the thresholds and the exemptions from GST Registrations.

Who is Liable to Register under GST Act, 2017

Every supplier of goods or services or both is required to obtain registration in the State or the Union territory from where he makes the taxable supply if his aggregate turnover exceeds specified threshold limit in a FY.

The Aggregate turnover is to be calculated as follows:

Applicable Threshold Limit for requiring GST Registration under GST Act.

• Section 22 of the CGST Act, 2017 specifies the following threshold limit for obtaining GST Registration:

Note: Supplier is not required to take GST registration in the state/UT from where he/she is making only exempt/ non-GST supply.

• Person liable for registration in case of transfer of business
  • Where a business is transferred, whether on account of succession or any other reason including transfer/change in the ownership of business due to death of the sole proprietor, to another person as a going concern, then the transferee/ successor, is to be registered with effect from the date of such transfer/succession.
  • Where the business is transferred, pursuant to sanction of a scheme/ arrangement for amalgamation/ de-merger of two or more companies, pursuant to an order of a High Court/Tribunal, then the transferee is to be registered with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order.

Compulsory Registration in Certain Cases

Section 24 of the CGST Act specifies the following class of persons who are mandatorily require taking GST registration irrespective of the quantum of his aggregate turnover:

• Persons making any inter-State taxable supply– However, the threshold limit of Rs. 20 lakhs and (Rs. 10 lakhs in case of Special Category States of Mizoram, Tripura, Manipur, and Nagaland) is available in case of inter-State supply of taxable services and of notified handicraft goods and notified handmade goods.
• Casual taxable persons (CTP) making taxable supply– However, the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland) is available in case of CTP who is making inter-State taxable supplies of notified handicraft goods and notified hand- made goods and is availing the benefit of exemption from registration as mentioned in point 1 above.
• Persons who are required to pay tax under reverse charge on inward supplies received. However, persons engaged exclusively in making outward supplies, tax on which is liable to be paid on reverse charge basis are exempt from registration.
• Non-resident taxable persons (NRTP) making taxable supply.
• E-commerce:
  •  Every E-Commerce Operator (ECO) who is required to collect tax at source under section 52,
  •  Persons who supply goods and/or services, other than supplies specified under section 9(5), through such ECO who is required to collect tax at source under section 52, but threshold limit of Rs. 20 lakh (10 lakh in case of Special Category States of Mizoram, Tripura, Manipur, and Nagaland) is available in case of suppliers supplying services through ECO.
• Persons who are required to deduct tax under section 51, whether or not separately registered under this Act.
• Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise.
• Input Service Distributor, whether or not separately registered under this Act.
• Every person supplying online information and data base access or retrieval (OIDAR) services from a place outside India to a person in India, other than a registered person; and
• Persons who are required to pay tax under section 9(5).

Persons Not Liable for Registration

Section 23 lists the persons who are not liable to obtain a registration.

• Person engaged exclusively in the business of supplying goods and/ or services not liable to tax/wholly exempt from tax.
• An agriculturist, to the extent of supply of produce out of cultivation of land.
• Persons making only reverse charge supplies.
• Persons making inter-State supplies of taxable services up to 20 lakh (10 lakh in case of Special Category States of Mizoram, Tripura, Manipur, and Nagaland)
• Persons making inter-State taxable supplies of notified handicraft goods and notified handmade goods up to Rs. 20 lakhs.
• Casual Taxable Persons making inter-State taxable supplies of notified handicraft goods and notified handmade goods up to Rs. 20 lakhs
• Persons making supplies of services through an ECO [other than supplies specified under section 9(5)] with aggregate turnover up to Rs. 20 lakhs

Comments

We have covered the key aspects such as Liability/ threshold and exemptions for GST registration in India, In the following article we have covered the detailed challenges that are being faced by the taxpayers nowadays while applying for GST registrations.

In conclusion, obtaining GST registration approval is a crucial step for businesses, and understanding the factors that influence the approval time is essential for efficient compliance. By following best practices, such as submitting accurate and complete documentation, maintaining proactive communication with tax authorities, and leveraging technology, businesses can expedite the approval process. Additionally, learning from real-life case studies and staying updated on advancements in digital platforms can further streamline the registration process.