Who Needs to Have GST Registration?
GST Registration is mandatory for businesses supplying goods that have an annual turnover of Rs 40 lakh for normal category or more (Rs 20 lakh or more in North Eastern States). The taxpayers who supply services and have an annual turnover of Rs 20 lakh in normal category states and Rs 10 lakh in special category states have to get GST registration. Goods suppliers and service providers in interstate trade must opt for GST registration irrespective of their annual turnover limits though agricultural producers and small-scale cottage industries are exempted from having a GST Registration. This article discusses who requires GST registration and what are the GST registration requirements.
Who is a Taxable Person Under the GST Regime?
A taxable person under the GST refers to one who is an Individual, HUF, Company, Body Corporate incorporated under the laws of a foreign country, Co-Operative Society, Local Authority, Government, Trust, Artificial Juridical Person, Corporation or Government Company, Firm, LLP, AOP/BOI and more.
The following are the taxpayer who requires GST registration.
- Regular GST Registration
- Composition Scheme
- Casual Taxable Person
- Non-resident Taxable Person
- Agents of a Supplier
- E-Commerce Operators
- UN Bodies/Embassies
- TDS/TCS Deductors
- Input Service Distributors
- Taxable Person under RCM
- Supplier of Online Information and Database Access or Retrieval (OIDAR) services from outside India to an unregistered person  Â
- Individuals Working in Export-Import Industry
- Persons conducting business in other states than home one
Regular Taxpayer under GST
Any person or business who is involved in trade or commerce in the country is a regular taxable person. Such a person is to be registered under the GST Act to engage in any economic activity.
Composition Scheme Taxpayer
Such taxpayers who are registered under the composition scheme are called composition taxpayers. Such persons do not have to collect tax from the customers and need not pay taxes at normal rates to the government but they have options to pay the taxes a lower rates based on the aggregate turnover limits. Suppliers of goods and services are eligible under this scheme. These taxpayers can pay taxes at lower GST Rates ranging from 1% to 6%.
Casual Taxable Person
A casual taxable person refers to the one who supplies goods and/or services to a business that is located in a taxable territory. The supplier does not have a place of business in such territories and acts as a principal or agent.
Non-Resident Taxable Person
A non-resident taxable person under GST is one who occasionally makes supplies of goods and/or services to the territories where GST is applicable. But such a person does not have any place of business in that territory means the non-resident taxable person does not have a place of business in India however do trade and commerce.
Agents of a Supplier
Any person who carries on a business of supply or receives receipts of goods and/or services on behalf of another person is considered an agent of supplier. Such agents can be known as a factor, broker, commission agent, arhatia, del credere, auctioneer, or any other mercantile agent.
E-Commerce Operators
E-commerce operator refers to the person who manages, operates, or owns a digital or electronic facility or platform for electronic commerce.
TDS/TCS Deductors
Persons who deduct tax at source for the government and the persons who collect tax sources are eligible for the GST Registration.
Input Service Distributor
Input service distributor refers to one who gets invoices for services used by its other branches or other offices than the head office. The ISD distributes ITC to its partners located in different places.
Taxable Person under RCM
Under the Reverse Charge Mechanism, the liability to pay GST shifts from the supplier to the recipient of services and/or goods. Under RCM, the supplier cannot claim an Input Tax Credit as the recipient pays applicable taxes.
Supplier of OIDAR
Services provided by a supplier through the Internet or some digital medium without any physical interference are OIDAR services and such suppliers are eligible for a GST Registration under the GST rules and regulations.
Get Started with TaxDunia
Make TaxDunia your reliable partner in the field of taxation and accounting services. If you meet all the above eligibility criteria, you can switch to also get GST Registration. It will benefit your business and help in manage cash flow better. The government offers various benefits to registered businesses.
