Who Must Get GST Registration

All businesses involved in buying or selling goods or providing services, or both, should register for GST. But for below-listed persons, GST Registration is compulsory.

• Previous Law Converted Taxpayer – All individuals or companies registered under the Pre-GST tax laws like Service Tax or Excise or VAT, etc.
• Turnover for Goods Provider – If your sales or turnover of goods is crossing Rs. 40 lakh in a year then GST Registration is mandatory. For the Special Category Status, the limit is Rs. 20 lakh in a year.
• Turnover for Service Provider –If you are a service provider & sales or turnover is crossing Rs. 20 lakh in a year then GST Registration is mandatory. For the Special Category Status, the limit is Rs. 10 lakh in a year
• Casual Taxpayer –If you supply goods or services, in events/exhibitions, and not have a permanent place of doing business. In such cases, GST is charged based on an estimated turnover of 90 days. The validity of the Registration is also 90 days.
• Agents of Suppliers or Input Service Distributor (ISD) –All supplier agents and ISD, to earn benefits of Input Tax Credit, need GST Registration.
• NRI Taxable Person – If you are an NRI or handling the business of NRI in India.
• Reverse Charge Mechanism (RCM) – Businesses who need to pay taxes under the RCM also need to be GST registered.
• E-Commerce Portals & Sellers –Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendors are selling their products. Or for all vendors. You need a GST Registration.
• Outside India Online Portal – For suppliers of online information and database access or retrieval services from a place outside India to Indian Residents.
• Transferee – When the business has been transferred.
• Inter-State Operations –Persons making an inter-state supply. Whatever the turnover.
• Brands – Aggregator who supplies service under his Brand or Trade Name.
• Other Taxation – Persons who are required to deduct tax u/s 37 (TDS) of the Income Tax Act.
• Voluntary GST Registration – Any entity can obtain GST registration at any-time. Even when the above mandatory conditions don’t apply to them.
• Inter-State Registration – If you are a supplier in more than one state you need GST Registration in all the states that you supply goods or services to.
• Branches – If your business has multiple branches in multiple states, register one particular branch as the main office or head office and the remaining branches as additional.

GST Registration Process on Government Portal

All businesses involved in buying or selling goods or providing services, or both, should register for GST. But for below-listed persons, GST Registration is compulsory.

• Go to the Government GST Portal and look for Registration Tab.
• Fill PAN No., Mobile No., E-mail ID and State in Part-A of Form GST REG-01 of GST Registration.
• You will receive a temporary reference number on your Mobile and via E-mail after OTP verification.
• You will then need to fill Part-B of Form GST REG-01. To be duly signed (by DSC or EVC) and upload the required documents specified according to the business type.
• An acknowledgment will be generated in Form GST REG-02.
• In case any information is pending from your side. It will be sought from you by intimating you in Form GST REG-03. for this, you may be required to visit the department and clarify or produce the documents within 7 working days in Form GST REG-04.
• The office may also reject your application if they find any errors. You will be informed about this in Form GST REG-05.
• Finally, a certificate of registration in Finally, a certificate of registration will be issued to you by the department after verification and approval in Form GST REG-06

Benefits of GST Registration

• Elimination of Multiple Taxes

  One of the benefits of GST is the elimination of multiple indirect taxes that existed earlier. So many taxes have been replaced. Taxes like excise, octroi, sales tax, Service tax, CENVAT, turnover tax, etc are not applicable anymore and all those have come under common tax called GST.

• Saving More Money

  GST applicability has resulted in the elimination of double charging in the system for a common man. Through this, the price of goods and services has reduced & helping the common man saving more money.

• Ease of business

  GST brought the concept of “One Nation One Tax”. That unhealthy competition that existed earlier among the States has benefited businesses wishing to do interstate business.

• More Employment

  Because GST has reduced the cost of products, the demand, for some – if not all, products have increased. With the increase in demand, to meet the increase in supply, the employment graph has started going up.

• Increase in GDP

  The higher the demand, the higher will be the production. This results in a higher Gross Domestic Product (GDP).

• Reduction in Tax Evasion

  Goods and services tax is a single tax that includes various earlier taxes and has made the system efficient with fewer chances of corruption and Tax Evasion.

• More Competitive Product

  Manufacturing has become more competitive with GST eliminating the cascading effect of the tax, inter-state tax, high logistics cost. Bringing competitiveness as GST will address the cascading effect of the tax, inter-state tax, high log benefits to the businessman and consumer.

• Increase in Revenue

  Under the GST regime, 17 indirect taxes have been replaced into a single tax. The increase in product demand means higher tax revenue for state and central government.