Any person or entity supplying goods or services in India above the aggregate turnover limit is mandatorily required to obtain GST registration.
Rs.20 lakhs for service providers and Rs.40 lakhs for goods suppliers, except in special category states and subject to the conditions below.
GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover
There are various types of GST registration and some types of entities like casual taxable persons, non-resident taxable persons or persons supplying through eCommerce operators are required to mandatorily obtain GST registration irrespective of turnover limit. The GST turnover limit for regular GST registration for service providers and goods supplier is provided below.
Service Providers: Any person or entity who provides service of more than Rs.20 lakhs in aggregate turnover in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers has been fixed at Rs.10 lakhs.
Goods Suppliers: As per notification No.10/2019 any person who is engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs in a year is required to obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:
If the above conditions are not met, the supplier of goods would be required to obtain GST registration when the turnover crosses Rs.20 lakhs and Rs.10 lakhs in special category states.
Special Category States: Under GST, the following are listed as special category states - Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Supplies Taxable under Reverse Charge + Value of Non-Taxable Supplies).
Aggregate turnover is calculated based on the PAN. Hence, even if one person has multiple places of business, it must be summed to arrive at the aggregate turnover.
Any person or entity irrespective of business turnover can obtain GST registration at any-time. Hence, GST registration is obtained by many businesses in spite of not reaching the aggregate turnover limit. Some of the main reasons for obtaining voluntary GST registration are:
Entities registered under GST have various responsibilities and compliance requirements from time to time. Failure to comply with the GST regulations or compliance requirements can lead to penalties and revocation of GST registration by the authorities. Some of the main responsibilities of a person registered under GST include:
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The Government has increased the GST turnover limit and has announced that small businesses with an annual sales turnover of upto Rs.40 lakhs will be exempt from having to obtain GST registration. The same will also be increased to Rs.20 lakhs for special category states.
List of documents required for GST registration. Registration certificate, identity & address proof of promoters and DSC is required for GST registration.
Procedure to create a GST invoice as per the GST Act or download a sample GST invoice as per GST Invoice Rules. Under GST, GSTIN of the supplier is mandatorily required to be mentioned in the tax invoice along with a consecutive serial number that is unique for each financial year.
Procedure and criteria for obtaining GST registration for branches and business verticals within the same state and operating under different states.
The meaning of interstate and intrastate supply under GST with illustrations. In GST, the terms interstate and intrastate have tremendous significance in the determination of IGST, CGST or SGST. Interstate supply attracts IGST, while intrastate supply attracts CGST and SGST.
Meaning and difference between CGST, SGST and IGST. CGST and SGST are applicable on intra-state supplies. IGST is applicable on inter-state supplies.
GST composition scheme helps small businesses with turnover of less than Rs.150 lakhs by simplifying the GST tax return filing procedure and allowing quarterly filing of GST returns.
File GST return online through IndiaFilings with GST Expert Support. You can prepare and file GSTR-1, GSTR-2, GSTR-3 and GSTR-4 return online through IndiaFilings. In addition to filing GST returns, you can also issue GST invoices and record purchases on LEDGERS to automatically file GST returns.
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IndiaFilings can help you open bank current account for your business once GST registration is obtained. Currently, a current account is not required for obtaining GST registration. After the GSTIN is provided, the applicant can update the current account details by easily filing an amendment.
No. An entity operating in multiple states will have to get registered separately for each of the States from where taxable supply of goods or services is made.
Procedure has been provided in the GST portal for migration of existing service tax or VAT or central excise to GST. Entities registered under old tax laws must complete GST migration mandatorily to obtain GST.
Yes. Any entity wishing to claim input tax credit can registered voluntarily, even if not liable to be registered. After registration, voluntarily registered entities will also have to comply with regulations as applicable to a normal taxable person.
Yes. PAN is mandatory for normal taxpayers and casual taxable persons to be registered under GST. However, PAN is not mandatory for a non-resident taxable person for obtaining registration.
Once GST certificate is granted, the registration is valid until its surrendered or cancelled or suspended. Only GST certificate issued to non-resident taxable person and casual taxable person have a validity period.
No, an unregistered person without GSTIN cannot collect GST from customers or claim input tax credit of GST paid.
After submission of GST application with all the required documents, GSTIN is alloted within 7 working days.
Aggregate turnover is the aggregate value of all taxable supplies, exempt supplies, export of goods or services or both and inter-State supplies of a person having same PAN. Aggregate turnover does not include CGST, SGST, IGST and GST cess.
GST certificate is provided by the Government only in soft-copy format. Once GSTIN is allotted, GST certificate can be downloaded from the GST Portal at anytime by the taxpayer.
Businesses or entities supplying goods or services must register for GST from every State from where taxable supply of goods or services or both is made.
Primary authorized signatory is the person who is primarily responsible to perform action on the GST System Portal on behalf of the taxpayer. It can be the promoter of the business or any person nominated by the promoters of the business.
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