Registration under Goods and Services Tax (GST)
Goods and services tax registration is state specific and is based on the event of “supply”. The following persons are liable to registration. We can categorise the registration categories as below.
| Mandatory GST registration requirement | Threshold limit up to | ||
|---|---|---|---|
| States-Category | Only Services | Only Goods | Both Good or Services or both |
| All states and union territories Excluding special Category states |
Rs.20 lakhs | Rs.40 lakhs | Rs.20 lakhs |
| Special category states | Rs.10 lakhs | Rs.10 lakhs | Rs.10 lakhs |
A. New Registration
1. Every supplier has to register with the respective state or Union territory from where make the supply of goods or services or both, if the aggregate turnover in a financial year exceeds Rs.20 lakhs.
Any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, are exempt from obtaining registration under the GST Act, vide notification Notification No. 10/2019-Central Tax
2. In case of special category states, the turnover limit is Rs.10 lakhs, .i.e. if the aggregate turnover of supply from the respective state exceeds Rs.10 lakhs, then only the supplier has to get registered under GST.
Special category states as specified in Article 279A(4)(g) of the Constitution of India includes the State of Assam, Arunachal Pradesh, J&K, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland and Tripura
Aggregate turnover – it shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.
The supply of goods, after completion of job worker by a registered job worker shall be treated a supply of goods by the principal. The value of such goods shall not be included in the aggregate turnover.
Aggregate turnover- Sum of all (taxable supplies + exempt supplies +exports of goods or services or both + inter-State supplies of persons having the same Permanent Account Number) – to be computed on all India basis
Aggregate turnover excludes- value of inward supplies on which tax is payable by a person on reverse charge basis.
Aggregate turnover also excludes central tax, State tax, Union territory tax, integrated tax and cess.
3. Multiple state registration
– GST has a state specific registration requirement. A business entity has to register in each of the states where it makes a taxable supply.
B. Existing registration
Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.
C. Merger, Acquisitions and Demerger
Where a business carried on by a taxable person registered under the GST Act, is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal
D. Compulsory registration
The following persons are compulsorily required to get registered under the GST Act.
1. Persons making any inter-state Taxable supply
2. Casual taxable persons making taxable supply
3. persons who are required to pay tax under reverse charge
4. person who are required to pay tax under sub-section (5) of section 9;
5. non-resident taxable persons making taxable supply
6. persons who are required to deduct tax under section 51, whether or not separately registered under this Act
7. persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
8. Input Service Distributor, whether or not separately registered under this Act;
9. persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52
10. Every electronic commerce operator [who is required to collect tax at source under section 52
11. every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person
12. such other person or class of persons as may be notified by the Government on the recommendations of the Council
