General GST question

Who needs to register under GST?

Under the Goods and Services Tax (GST) regime in India, certain individuals and entities are required to register for GST. The GST registration threshold varies based on the type of supply (goods or services) and the location of the supplier.

  1. Mandatory Registration:
  • Individuals or entities engaged in the supply of goods or services whose aggregate turnover in a financial year exceeds the prescribed threshold limit are required to obtain GST registration. The threshold limits may vary for different states and Union Territories.
  1. Threshold Limits for Mandatory Registration:
  • For the supply of goods, the threshold limit for mandatory registration is typically higher than that for the supply of services. However, both limits are subject to change, and it is crucial to check the latest threshold limits prescribed by the government.
  1. Special Category States:
  • In certain special category states and Union Territories, the threshold limits for mandatory GST registration may differ from those applicable in other areas.
  1. Casual Taxable Persons:
  • Individuals or entities who occasionally undertake taxable supplies but do not have a fixed place of business in India are considered casual taxable persons. They are required to obtain GST registration before commencing business.
  1. Non-Resident Taxable Persons:
  • Non-resident individuals or entities that supply taxable goods or services in India are required to register under GST, irrespective of their turnover.
  1. Input Service Distributor (ISD):
  • An Input Service Distributor, which is a business that receives invoices for services used by its branches and distributes the input tax credit, needs to register under GST.
  1. E-commerce Operators:
  • E-commerce operators that facilitate the supply of goods or services through their platform are required to register, irrespective of their turnover. Sellers on the e-commerce platform may also need to register individually.
  1. Aggregator Supplying Services Under His Brand Name:
  • An aggregator who supplies services under his brand name is required to register, irrespective of the turnover.
  1. Agents of Supplier:
  • If an agent supplies goods or services on behalf of the principal, the agent is required to register under GST.

It’s important to note that the threshold limits and specific requirements may be subject to changes, and businesses should check the latest notifications and rules issued by the government. Additionally, certain categories of businesses may be exempted from GST registration even if their turnover is below the threshold limits. Businesses that are not required to register may choose to do so voluntarily.