Who is eligible for GST registration?

If a company's yearly turnover surpasses Rs. 40 lakh, it is required to register as a normal taxable entity under the GST regulations. In order to maintain legal compliance and prevent fines, Indian business owners need to be aware of who is eligible for GST registration.

Who are Eligible for GST Registration?

• Businesses with Annual Turnover Exceeding Rs. 40 Lakhs: For most states, businesses involved in the supply of goods need to register for GST if their aggregate annual turnover exceeds Rs. 40 lakhs.

• Service Providers: If the annual turnover for service providers exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states), GST registration is mandatory.

• Special Category States: These include states like Arunachal Pradesh, Uttarakhand, Sikkim, etc. The turnover limit for businesses in these states is reduced to Rs. 20 lakhs for goods and Rs. 10 lakhs for services.

• Businesses involved in the interstate supply of goods (even if the turnover is below the threshold limits) must register for GST. This is applicable to e-commerce businesses and those supplying goods across state borders.

• Individuals or entities that occasionally supply goods or services in a taxable territory where they do not have a fixed place of business must register for GST.

• Any business operating an e-commerce platform or providing services via an e-commerce platform is required to register for GST, regardless of turnover.

• If a business is liable to pay tax under the reverse charge mechanism (where the recipient of goods/services pays the GST instead of the supplier), GST registration is compulsory.

• ISDs who distribute input tax credits to their branches or units need to register.

This is all about

who is eligible for GST registration

.

Read more

Wondering about the eligibility for GST registration? In India, Goods and Services Tax (GST) registration is mandatory for certain businesses, while others may choose to register voluntarily. The eligibility for GST registration depends on various criteria such as turnover, nature of business, and location. Scroll down to get the criteria.

What is the Eligibility to Register for GST?

Here are the key criteria for GST number eligibility:

• Businesses with an aggregate turnover exceeding ₹20 lakhs (₹10 lakhs for special category states) in a financial year for service providers.

• Businesses with an aggregate turnover exceeding ₹40 lakhs (₹20 lakhs for special category states) in a financial year for goods suppliers.

• Businesses engaged in inter-state supply of goods or services, irrespective of turnover, must register for GST.

• E-commerce operators, facilitating the supply of goods or services, must register for GST, regardless of turnover.

• Persons who occasionally supply goods or services in a taxable territory where they do not have a fixed place of business must register for GST.

• Non-residents making taxable supply in India must register for GST.

• Agents or any other person who makes taxable supply on behalf of other taxable persons must register for GST.

• Businesses liable to pay tax under the reverse charge mechanism must register for GST.

• Input service distributors must register for GST.

Persons who are required to deduct tax at source (TDS) under GST. Persons supplying goods or services through e-commerce operators. Persons required to collect tax at source (TCS) under GST.

1. Businesses Below Threshold Limit: Businesses with turnover below the threshold limit can voluntarily opt for GST registration to avail input tax credit and other benefits.

2. Startups and Small Businesses: Startups and small businesses may voluntarily register to enhance their credibility and facilitate business dealings.

3. Composition Scheme: Small taxpayers with a turnover of up to ₹1.5 crores can opt for the Composition Scheme and register for GST. They pay tax at a fixed rate and file quarterly returns.

This is all about who are eligible for GST registration.

Read more

According to the GST Act 2017, businesses that have Rs 40 lakh or more turnover need to register under GST. But for northeastern and hill stations, the minimum turnover is Rs 10 lakh. GST registration is mandatory. If the person carrying business doesn’t comply with the rules of GST, it is an offense as per the GST Act. That person shall be penalized for it. The main documents you need for GST registration are your pan card, adhaar card, address proof of the person in charge, proof of business registration, photographs, bank account statement, and business address proof.  These documents may vary for individuals and sole proprietors, LLPs and partnerships, Hindu undivided families (HUFs), societies or clubs, and companies.

GST registration eligibility

• Persons making the interstate supply of taxable goods and services.

• Persons with taxability under reverse charge.

• Non-resident taxable persons.

• All e-commerce operators.

• Individuals registered under pre-GST law such as VAT, Excise duty, etc.

• Casual taxable person

• Agents acting on behalf of a registered taxpayer.

• TDSTCS deductors.

• Input service distributors.

• Aggregators supplying services under a new brand or trade name

• Any other person or group of persons notified by central or state government as per GST council recommendations

This is the eligibility criteria for GST registration. You need to register under GST if you sell goods under the same state and you have 20 lakhs or more as an annual turnover. Likewise for service providers, within the same state and having 40 lakhs or more as annual turnover.