Types of Taxpayers Under GST
To accommodate the diverse needs of the Indian market, there are various categories for taxpayers under which they can file returns monthly or quarterly as per the case and claim the benefits accordingly. The nature of business and annual turnovers play a vital role in deciding what kind of taxpayer an individual or business is. This article disucsses the types of taxpayers under GST, also get your business registered under GST.
- Casual Taxable Person
- Normal Taxpayer
- Composition Taxpayer
- Input Service Distributor
- Non-Resident Taxable Person
- Non-Resident Online Service Distributor
- Embassy/UN Body/Other Notified Persons
- Special Economic Zone or SEZ Developer Unit
- Tax Deductor at Source (TDS)/ Tax Collector at Source (TCS)
Casual Taxable Person
A Casual Taxable Person under the GST framework in India is someone who occasionally is involved in the supply of goods or services or both in a state or union territory where it has no principal place of business. The person can be involved as a principal, agent, or in any other capacity in the supplying.
Who is a Normal Taxpayer?
The Normal or Regular taxpayer is a person who files monthly GST returns and whose business’s annual turnover is Rs 40 Lakh or above in the majority of the states while Rs 20 Lakh or above in special category states.
 Who is a Composition Taxpayer?
A Composition Taxable Person is a taxpayer who cannot collect nor is entitled to any credit of input tax. To pay taxes at a fixed rate, businesses having annual turnover up to Rs 1.5 Cr, Rs 75 Lakh (eastern states and Himachal Pradesh), and Rs 50 Lakh for service providers, can register under the composition scheme of GST. The Composition Scheme taxpayers pay the taxes at a standard rate.
An Input Service Distributor
Input Service Distributor is a type of taxpayer who receives invoices for services used by their business’s branches. An ISD has to distribute the GST Input Tax Credit that pertains to its GSTIN to its branches that have different GSTINs but are registered under the same PAN. A supplier of taxable goods and services who receives tax invoices for the receipt of input services.
Non-Resident Taxable Person
A supplier of goods and services to India having a principal place of business outside the country is a non-resident taxable person. The only difference between a non-resident taxable person and a casual taxable person is the former does not have a place of business in the country and the latter has one.
Non-Resident Online Service Distributor
The Non-Resident Online Service Distributor refers to a person who deals in digital services from outside the country. Such persons deal in OIDAR (Online Information and Database Access or Retrieval) services from a foreign country and serve unregistered persons in India.
Embassy/UN Body/Other Notified Persons
The Ministry of External Affairs issues a Unified Identity Number to the Embassy/UN Body/Other Notified Persons who can deal in the procurement of taxable goods and services with the GST Registered person in the country.
Special Economic Zone or SEZ Developer Unit
SEZ Developers are those who receive a Letter of Approval from the central government to create business, residential, or recreational facilities in special economic zones. Suppliers of goods and services made to SEZ are treated as Zero-Rated Supplies and attract 0% GST.
Tax Deductor at Source (TDS))/ Tax Collector at Source (TCS)
Such taxpayers who deduct TDS before making a payment to the customer is a TDS Taxpayer. The TCS collectors collect the payment from the sellers and pay it to the government. The e-commerce operators are the TCS collectors.
To ensure that your business is complying with the legal rules of GST, reach out to TaxDunia. We offer customized solutions targeting the specific needs of our clients. The team of TaxDunia assists in GST Returns filing, ITR Services, and various Registration services.
