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Why-Registration-of-GST-required-in-India

 

Why Registration of GST required in India

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See the related post : List of Revised GST Tax Rates
 
Introduction

Registration under GST is required under section 22 and Section 24 of CGST Act.

Section 22 provides a liability to register when his "Aggregate turnover" exceeds the threshold limit of Rs. 20 lakh for all states or 10 lakh for NE and hill states has increased to Rs. 40 lakh or Rs. 20 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019.

or

Section 24 provides certain categories of persons who are compulsorily required to register themselves however, the threshold limit of Rs. 20 lakh for all states or 10 lakh for NE and hill states has increased to Rs. 40 lakh or Rs. 20 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019. is not applicable to them.

 

 
There are following categories for which registration of GST is mandatory-

  • Turnover based - GST registration is mandatory, If an entity has an "Aggregate turnover"* of more than Rs. 20 lakh for all states has increased to Rs. 40 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019 OR In case of special category states i.e. NE and hill states, the annual "Aggregate turnover"* threshold for GST registration is Rs. 10 lakh has increased to Rs. 20 lakh in 32nd GST Council meeting at New Delhi on 10th January 2019..
    *"Aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess etc.

  • Inter-state supply of goods- If any person wants to supply goods from one state to another state, for example- Mr. X transfer goods from Panchkula (Haryana State) to Amritsar (Punjab State), it is possible when they have GST number, the threshold limit as above are not applicable to them.

  • Supply of goods/services through E-commerce- If any person wants to supply goods or services through an e-commerce platform for example Amazon, Flipkart etc. it is possible when they have GST number, the threshold limit as above are not applicable to them.

  • Causal Taxable Persons- If any person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

    Hence, persons running temporary businesses in fairs or exhibitions or seasonal businesses would fall under casual taxable persons under GST. The threshold limit as above are not applicable to them.


  • Non-resident Taxable Person- If any non-resident Taxable Person, similar as a Casual Taxable Person, except that he/she resides outside India and occasionally conducts business in India. The threshold limit as above are not applicable to them.

  • Reverse Charge Taxable Person- If any recipient of goods/services is liable to pay taxes instead of the supplier, known as reverse charge.  Therefore, it is required to obtain GST registration. The threshold limit as above are not applicable to them.

  • Voluntary Registration- If any person who wants to obtain voluntary GST registration, can apply for GST registration, the threshold limit as above are not applicable to them.
 



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