Goods and Service tax (GST) is a ‘uniform’ ‘value added’ ‘indirect tax’ levied on supply of goods and services across the country. GST is a “destination-based tax” which is levied only on value addition at each stage because credits of input taxes paid at the time of procurement of goods or services are available and could be set off with output tax liability. In any tax system, registration is the most fundamental requirement for identification of tax payers to ensure tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique GSTIN from the concerned tax authorities for the purpose of collecting tax on output goods/services on behalf of the government and to avail input tax credit for the taxes on the inward supplies.
The mandatory registration criteria under GST is based on the turnover of the business. Currently, registration is mandatorily required if annual turnover exceeds Rs 40 Lacs for businesses other than specified states (Northeast and hill states) and Rs 20 Lacs for service providers. Such registration shall be taken within 30 days of becoming liable to registration.
The following businesses are not required to get registered under the GST Act:
GST is levied on the supply of all goods and services except the supply of Petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel, and alcohol for human consumption. These products and services are taxed by the individual State Governments, as per their respective tax laws.
Registration granted under the States Goods and Service Tax (SGST) Act or Union Territory Goods and Service Tax (UTGST) Act is deemed as a grant of registration under CGST Act, unless the application is specifically rejected in CGST Act within the specified time.
Registration under GST is compulsory under certain circumstances as listed below:
|S. No.||Description of supply||Turnover critera|
|1||Supply of Goods in the States of Arunachal Pradesh, , Meghalaya, Puducherry, Sikkim, Telangana, and Uttrakhand||Rs. 20 lacs|
|2||Supply of Goods in the states of Manipur, Mizoram, Nagaland and Tripura||Rs 10 lacs|
|3||Supply of Goods in other states||Rs 40 lacs|
|4||Supply of services or mixed supplies in States of Manipur, Mizoram, Nagaland and Tripura||Rs 10 lacs|
|5||Supply of services or mixed supplies in other states||Rs 20 lacs|