General questions

Who needs to register under GST?

Under the Goods and Services Tax (GST) system in India, registration is mandatory for certain individuals and entities involved in the supply of goods or services. The threshold limit for mandatory registration can vary based on the type of supply and the location of the supplier. As of my last knowledge update in January 2022, here are the general categories of persons who need to register under GST:

  1. Mandatory Registration:
  • Individuals or businesses with an aggregate turnover exceeding the prescribed threshold limit (as of my last update, the threshold limit is INR 20 lakhs for most states, except special category states where it is INR 10 lakhs).
  1. Special Category States:
  • In certain special category states (e.g., Arunachal Pradesh, Mizoram, etc.), the threshold limit for mandatory registration is lower.
  1. Casual Taxable Persons:
  • Individuals or businesses that supply goods or services on a temporary basis in a different state or union territory.
  1. Non-Resident Taxable Persons:
  • Non-resident individuals or businesses making taxable supplies in India.
  1. Persons Required to Deduct TDS or TCS:
  • Individuals or entities required to deduct Tax Deducted at Source (TDS) or collect Tax Collected at Source (TCS).
  1. E-commerce Operators:
  • E-commerce platforms that facilitate the supply of goods or services through their portal.
  1. Input Service Distributor:
  • An office of the supplier of goods or services that receives tax invoices for the supply of input services and issues tax invoices for the distribution of credit.
  1. Agents of a Supplier:
  • Individuals or entities that supply goods or services on behalf of other taxable persons.
  1. Person Supplying Goods or Services on Behalf of Other Taxable Persons:
  • Individuals or entities that supply goods or services, or both, on behalf of other taxable persons.

It’s important to note that certain categories of persons, such as agriculturalists and some small businesses, may be exempt from GST registration even if their turnover is below the threshold limit. Additionally, voluntary registration is allowed for those who do not meet the mandatory threshold but wish to avail themselves of the benefits of GST registration.

GST laws are subject to amendments, and it’s advisable to refer to the latest regulations or consult with a tax professional for the most up-to-date information.