GST Registration – limit, applicability, documents, changes

GST Registration

Changes are inevitable, we have known since our childhood and we need to cope with it for surviving. Same rule goes with GST, new updates comes every now and then. Due to this many a times we get confused and struggle when it comes of coping with it. Let’s us understand about the GST registration and the changes which are to be effective soon.

Is every person liable for registration?

No, generally person exceeding the threshold limit of turnover is liable. That means, if the person exceeds certain threshold limit, it’s mandatory for them to take Registration under GST. However, persons belonging to these categories are required to compulsorily get registered under GST:

  1. Interstate suppliers
  2. Casual Taxable persons
  3. Persons taxable under the reverse charge basis
  4. Suppliers who supply goods through e-commerce operators who are liable to collect tax at source.
  5. Non-resident taxable persons
  6. Persons required to deduct TDS under GST (Govt. entities)
  7. Input Service Distributors
  8. Persons making a sale on behalf of someone else whether as an Agent or Principal.
  9. E-commerce operator (ECO) providing a platform to suppliers to make supply through it or ECO liable to collect TCS
  10. Online Service Providers providing service from outside India to a non-registered person in India.

Note- A person can take registration voluntary to avail benefits available from GST Registration even in case they don’t belong to above categories.

Read Also: GST Weekly Update: Goods and Service Tax 2022

What is the Threshold limit for GST Registration?

Indian States and union territories were given the option to choose the threshold limit which they want to implement for GST registration of their states and union territories.

GST Registration Limit for Services

Many changes or amendments are made in threshold limits in case of GST registration. Aggregate turnover limit for both services and sale of goods are different. In case of service there is no change in the limit, it remains Rs 20 lakh for all state except Manipur, Mizoram, Nagaland and Tripura whose GST Registration limit is Rs 10 lakh.

GST Registration Limit for Goods

But for GST registration, turnover limit in case of Goods –

In case of old scenario (Up to 31st March 2019)- Turnover or sales:

  • Exceeds Rs.10 lakh – For Special Category States (Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry, Telangana)
  • Exceeds Rs.20 lakh – For all other States 

Whereas, New Limits For Sale of Goods (From 1st April 2019) – Turnover or sales:

  • Exceeds Rs.20 lakh – For Special Category States (Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry, Telangana)
  • Exceeds Rs.40 lakh– For all other States 

Read Also: GST: 10 new changes applicable from 1st Jan 2022

Which Person are not liable for GST registration?

Following person are not liable to take GST Registration

  • Person engaged exclusively in supplying goods or services or both not liable to tax.
  • Person engaged exclusively in supplying goods or services or both exempt from tax.
  • Agriculturist engaged in supply of produce cultivated out of land.
  • Persons who are making supplies of taxable goods or services or both, however, the total tax is paid on reverse charge basis by the recipient
  • Persons making interstate supply of notified handicraft goods and having turnover not exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura).

Read Also: GSTR 2B – All details and content of newly launched GST Return

  • Casual taxable person making interstate taxable supply of handicraft goods and other notified handicraft goods not exceeding Rs. 20 Lakhs on all India basis (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura). Must have PAN card and generate E-way Bill.
  • Job workers engaged in interstate supply of services to a registered person upto turnover of Rs 20 lakh (Rs. 10 lakhs in case of Mizoram, Nagaland, Manipur and Tripura) but ….
  • Person supplying services through e-commerce operator and whose aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in case of special category states of Mizoram, Tripura, Manipur and Nagaland).
  • Person engaged in exclusive supply of goods and whose aggregate turnover in the previous financial year does not exceed Rs. 40 Lakhs except:
    1. Person compulsorily required to register under law as per section 24
    2. Person engaged exclusively in supply of goods being:
      • Ice cream and other edible ice, whether or not containing cocoa
      • Pan masala
      • Tobacco and manufactured tobacco substitutes
    3. Persons engaged in making intra state supply in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand
    4. Person registered under the previous laws i.e. Service tax act or VAT or CST etc.

Read Also: GST Registration : Functionality to check misuse of PAN

Documents required for taking registration.

As an Registered Person, we need following documents for taking GST registration-

  • PAN of the Applicant
  • Aadhaar card
  • Proof of business registration or Incorporation certificate
  • Identity and Address proof of Promoters/Director with Photographs
  • Address proof of the place of business
  • Bank Account statement/Cancelled cheque
  • Digital Signature
  • Letter of Authorization/ Board Resolution for Authorized Signatory.

Read Also: GST : How to add bank account in GST registration details

Aadhaar mandatory while taking registration

Every individual or authorised person to under go Aadhaar authentication for registration under GST. In case of failure, GST Registration is granted only after physical verification of principle place of business. The Registered Person must go for Aadhaar authentication for registration. As its also now mandatory for claiming refund and applying for revocation of cancellation of registration by GST Registered Person. For authentication-

1. Proprietorship and Partnership firm, proprietor and partner will authenticate via Aadhaar number.

2. HUF of Karta in the case of a Hindu undivided family

3. Managing director or any whole time director, one of the members of the managing committeeand one Trustee in the Board of Trusteeswill authenticate in the case of company, Association of persons or body of individuals or a SocietyPartnership and a Trust.

If new tax payer gives Aadhar details, auto-approval of registration will be available for them otherwise a detailed physical verification process will be made to confirm their identity.

Read Also: GST registration with a virtual office, is it possible?

Aggregate Turnover for GST Registration

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 PAN, to be computed on all India basis but not include CGST, SGST, UTGST and cess.

In other words, following are included while calculating aggregate turnover-

Value of all (taxable supplies + Exempt supplies + Exports +Inter-state supplies) of a person having the same PAN (Permanent Account Number) across all his business entities in India.

The below-given are excluded while calculating turnover:

  1. Taxes with respect to Cess, CGST, SGST or IGST Acts
  2. Value of taxes payable under reverse charge mechanism
  3. Values of inward supplies of goods and services
  4. Value of Non-taxable supplies of goods or services like Alcohol, Petrol etc.
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