What is a GST Registration?
GST Registration of a business with the tax authorities implies obtaining a unique, 15-digit Goods and Service Tax Identification Number (GSTIN) from the GST authorities so that all the operations of and the data relating to the business can be collected and correlated. In any tax system this is the most fundamental requirement for identification of the business for tax purposes or for having any compliance verification program.
Why should I obtain a GST Registration?
Registration under Goods and Services Tax (GST) regime will confer the following advantages to a business: Legally recognised as supplier of goods or services. Proper accounting of taxes paid on the input goods or services which can be utilised for payment of GST due on supply of goods and/or services by the business. Pass on the credit of the taxes paid on the goods and/or services supplied to purchasers or recipients. Authorization to a taxpayer to collect tax on behalf of the Government.
Do I need to register under the GST Act?
Registration under the GST Act is mandatory if your aggregate annual PAN-based turnover exceeds INR 40,00,000 (Rupees Fourty Lakhs) however the threshold for registration is INR 10,00,000 (Rupees Ten Lakhs) if you have a place of business in Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, or Uttarakhand.
Regardless of your turnover, registration is mandatory if
- You make Inter-State Supplies
- You supply goods through an E-commerce portal
- You are a/an
- Service Provider
- Agent for Registered Principal
- Liable to Pay Reverse Charge
- Non-resident Taxable Person
- Casual Taxable Person
- Input Service Distributor
- TDS/TCS Deductor
- E-commerce Operator
- An online data access and retrieval service provider
When do I need to register under the GST Act?
Within 30 days from the date when your liability arose. In case of a Casual Taxpayer or Non-resident taxable person, 5 days prior to the commencement of the business.