An Insight to the GST | A Complete Guide

An Insight to the GST | A Complete Guide

Types of GST Registration

Normal taxpayers- Businesses whose turnover exceeds Rs 40 lakhs in a financial year are required to register as a normal taxable person. Many businesses in India fall under this category.

However, if you have a business in north-eastern states, J&K, Himachal Pradesh and Uttarakhand then the gateway limit is Rs 10 lakhs.

Non-resident taxable individual- Individuals who reside outside India but occasionally supply goods or services as agents, principals, or in other capacities to Indian residents are liable to file for registration under this category.

The business owner must pay a deposit equal to the expected GST liability during the GST active tenure. The normal tenure is 3 months. However, individuals can extend or renew the registration if required.

Composition registration- A taxpayer whose turnover is below Rs 1.5 crore can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75 lakh. Businesses with an annual turnover of up to Rs 1 crore are eligible for registration under composition scheme.

Casual taxable individual- A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business. Occasional businesses need to register under GST for this category.

Who is Liable to get Registered under GST? 

  • A person making inter-state supplies
  • Casual taxable person
  • Non-Resident taxable person
  • Agents of a supplier
  • Those paying tax under the reverse charge mechanism
  • Any business involved in the supply of services whose turnover in a financial year exceeds Rs 20 lakh for Normal Category states.
  • Every person who is registered under an earlier law needs to register under GST, too.
  • When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.

New Guidelines for GST Registration

As per the new guidelines for GST registration, it is important to provide Aadhar. PAN card of the company/ business entity.

Proof of constitution like Articles of association, Memorandum of Association, Certificate of Incorporation, Partnership Deed etc

Registering for a new GST the person has to provide his income tax returns details so that it would be helpful to the Government to verify the credentials of the given entrepreneur that is seeking to register for a new GST.

The Government will first analyze the credentials of the given new entities and then place a suitable category.

The new entities that are seeking GST registration would be classified as Trustworthy and others on the basis of their credentials.

The Trustworthy entrepreneur would be one that has a clean history of income tax payment. And he should also have a no GST cancellation history to get eligible for the new GST registration.

Your business located in any of the listed special states (such as Assam, Jammu & Kashmir, Himachal Pradesh, etc.) has an annual turnover of over Rs.10 lakh.