Whom to Register under GST(Goods and Services Tax) Act

Whom to Register under GST(Goods and Services Tax) Act

Now you have to learn Whom to Register under GST(Goods and Services Tax) Act or when your Business need to have registered under GST(Goods and Services Tax) Act: –

if following any condition applicable to your business than you have to register under the GST Act.

  1. If your aggregate turnover in a financial year exceeds Rs 20 Lacs [Rs. 10 Lacs in case of special category States except J & K] show list as under
  2. If your turnover does not include the supply of only those goods/services which are exempt under the GST Act.
  3. If you want to supply your goods through E-Commerce (like Amazon, Flipkart, Snapdeal etc.)
  4. If your business was registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.) need to register under GST.
  5. If you drive the inter-state supply of goods.
  6. If you are a Non-Resident taxable person.
  7. If you are Casual Taxable Person.
  8. If you are Agents of a supplier.
  9. If you are Taxpayers paying tax under reverse charge mechanism.

Note: -Latest Update:

As per 23rd GST Council Meet on 10th November 2017

E-commerce sellers/aggregators need not register if total sales are less than Rs. 20 lakhs. Notification No. 65/2017 – Central Tax dated 15.11.2017

As per 22nd GST Council meeting of 6th October 2017

Service providers providing inter-state services are exempted from registration if their annual turnover is below 20lakhs (10 lakhs for Special states. 20 lakhs for J&K)

Notification No. 7/2017 – Integrated Tax dated 14th September 2017

Job workers making an inter-state supply of services to a registered person are exempted from registration if their turnover is below 20lakhs (10 lakhs for Special states)

 What is Aggregate Turnover?

The term ‘aggregate turnover’ has been defined in GST law as under:

“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 a 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.

Special Category States Under GST

Following states are assigned special status under Goods and Services Tax Law:

  1. Arunachal Pradesh
  2. Assam
  3. Jammu & Kashmir
  4. Manipur
  5. Meghalaya
  6. Mizoram
  7. Nagaland
  8. Sikkim
  9. Tripura
  10. Himachal Pradesh
  11. Uttarakhand

What are Exempted Goods and Services?

Article Compiles a list of 149 Type of Goods which are exempt from Tax under GST with respective HSN Code and Description of Goods as per Notification No. 2/2017-Central Tax (Rate) New Delhi, the 28th June 2017

List of Exempted Services under GST- Click to Download

What is E-Commerce?

            E-commerce is buying and selling goods and services over the Internet. E-business is a structure that includes not only those transactions that centre on buying and selling goods and services to generate revenue, but also those transactions that support revenue generation. These activities include generating demand for goods and services, offering sales support and customer service, or facilitating communications between business partners.

What is Pre-GST Law?

Before GST in India here was the number of tax law which are now subsumed into GST. So, if your business is already registered under any old indirect Taxation Like Excise, VAT, Services Tax and etc. before 01/07/201

What is an inter-state supply of goods?

When on business sold their goods to another state this is called inter-state supply of goods.

Who is a Non-Resident taxable person?

The person who makes the supply of goods or services as a principal, agent and any other capacity in a taxable state or union territory, where GST applies but he doesn’t have a fixed place of Business in India or residence in India. As per GST, you will be treated as a Non-Resident taxable person. 

Who is Casual Taxable Person?

The person who makes the supply of goods or services on an occasional basis as a principal, agent and any other capacity in a taxable state or union territory, where GST applies but he doesn’t have a fixed place of Business. As per GST, will be treated as a casual taxable person.

Important Points: –

  • This type of registration valid only for 90 days
  • Expiry of first 90 days it can be extended to 90 days again.
  • In this type of registration, the taxpayer has to deposit Tax liability in advance and it will be used as ITC
  • if extension made than addition tax liability must be deposited as required in advance again.

 Who is Agent of a supplier?

The GST Act defines an Agent as a person including a factor, broker, commission agent, del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another

 If you are Taxpayers paying tax under reverse charge mechanism.

             Reverse Charge means the liability to pay the tax by the person receiving goods and/or services instead of the person supplying the goods and/or services in respect of specified categories of supplies.

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