Category : GST
This is the second article of our GST Knowledge Series. This article clarifies the provisions regarding Registration under GST / GST Registration.
WHO IS LIABLE FOR REGISTRATION UNDER GST / GST REGISTRATION
- Every supplier (definition of supplier) who makes a taxable supply (definition of supply) of goods or services or both, if his aggregate turnover in a financial year exceeds rupees twenty lakh:
However, for suppliers located in special category States (as per the article 279A of the constitution of India – Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand), aggregate turnover limit in a financial year exceeds ten lakh rupees will be applicable.
- Every Person (Definition of Person) who is already registered or holds license under any existing law like VAT, Service Tax, Excise etc.
- Transfer of business on account of succession or otherwise, to another person as a going concern, the transferee or the successor, with effect from the date of such transfer or succession;
- In case of amalgamation, de-merger, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to the order of the High Court or Tribunal
- aggregate turnover (definition of aggregate turnover) means supplies made by the taxable person (definition of taxable person), whether on his own account or made on behalf of all his principals;
- the supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
In above, the limit of Rs. 20 Lakh / 10 Lakh not applicable to following for gst registration
- persons making any inter-State taxable supply;
- casual taxable persons making taxable supply;
- persons who are required to pay tax under reverse charge;
- e-commerce operator
- persons selling goods through ecommerce portal
- non-resident taxable persons making taxable supply;
- persons making supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
- Input Service Distributor,
A person may voluntary get himself registered under GST, although he is not liable to be registered under Schedule III, and all provisions of the Act shall apply to such person as are applicable to taxable person
REGISTRATION PER STATE
Where a person is supplying goods or services or both from more than one states, must obtain GST registration from each such state.
MULTIPLE REGISTRATIONS IN SAME STATE
For various business verticals (definition of business vertical) for one person, there is an option under GST to apply for multiple registrations for each such vertical
Every person shall have a PAN in order to be eligible for grant of registration under the Act.
A non-resident taxable person may be grant registration on the basis of any other documents as may be prescribed
NOT LIABLE TO REGISTER
- Any person supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax (IGST) Act;
- an agriculturist, to the extent of supply of produce out of cultivation of land.
In the next article we will try to elaborate on procedural part of GST Registration.
Please drop a line if you have any doubts or want to know more about provisions regarding GST Registration.