GST Registration Information

Concept: Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc and is valid all over India with effect from 1st July 2017.

When to register for GST: Mandatory to get GST Registration when annual turnover exceeds INR 40/20 lakh or supply goods and services inter-state or through E-commerce platform.

GST tax rates: Tax rates vary from 0% to 28% depending on the type of goods & nature of the services you are selling.

Input Tax Credit Availment: Only business units registered under GST can avail credit of tax paid at the time of purchase while filing GST returns.

Return Filing & Payment: Every GST registrant requires to file three monthly/quarterly returns and One annual return. Requires paying tax every month.

Composition Scheme: Business units having an annual turnover less than INR 1.5 crore may opt for the scheme. Requires to pay subsidize tax ranges from 1% to 5% & file quarterly returns.

When is GST Registration Mandatory in India?

Turnover Criteria: All taxpayers who have an annual turnover above 40 lakhs are required to get new GST registration. For Service supply, Turnover limit is 20 lakhs.

Causal taxpayer: If you supply goods or services in events/exhibitions where you do not have a permanent place of business, you need to get online registration for GST before starting a business. Such a dealer has to pay GST on the basis of an estimated turnover of 90 days. The validity of causal GST Registration is 90 days.

NRI taxpayer: NRI taxpayer, who does not have a place of business in India, wishes to start a business, then he has to apply for GST Registration in India before beginning operations in India. The validity of a new registration under GST is 90 days.

Agents of a supplier & Input service distributor: All Input service distributor who wants to carry forward the benefit of input tax credit requires GST registration.

Reverse Charge: A business who requires to pay tax under the reverse charge mechanism must also get registered under GST.

E-Commerce portal: Every e-commerce portal (such as Amazon or Flipkart) under which multiple vendors selling their product requires being enrolled under GST.

Inter state supply: Businesses who engage in the supply of goods or services outside its state boundaries must get registered with the GST Department. Such businesses are subject to Integrated Goods and Services Tax (IGST), which is charged on the supply of goods or services from one state to another.

Export: Exports are Zero Rated Supply in India and therefore, businesses engaged in export must get registered under GST in India.