GST Registration

GST Registration

GST (Goods & Service Tax) registration is mandatory for suppliers of goods with turnover exceeding Rs 40 lakh, In the case of supplier of services, the turnover limit exceeds Rs 20 lakh. Voluntary registration can be obtained even before achieving the turnover limit. Once registration is obtained it is mandatory to charge GST irrespective of the turnover.

Types of GST Registration

According to the GST Act 2017, the registration process has several categories to fall under. Depending on the kinds of business entities in the states, the GST registration process is divided into multiple categories, which are given as follows,

1. Normal Taxpayer:

The largest businesses in India are considered normal taxpayers. It is easier and simpler for them to pay taxes as they do not have any deposit fees or expiration dates on their fines. Additionally, the central government allows them access to unlimited validity of input tax credit.

2. Casual Taxable Person:

The best option for small & Seasonal businesses is the Casual Taxable Person registration. establishment who fall under this category of GST Registration must pay an advance amount equivalent to their anticipated GST liability during the time they're present. Howbeit, these categories are valid for three months only and can be increased if desired.

3. Composition Taxpayer:

Taxpayers like hotelier, ice cream parlour, trader whose turnover less than 1.5 crore per annum can save themselves from tedious GST rules by opting Composition Scheme and pay the tax on gross receipt. However, they will not be able to claim an input tax credit,inter state transacation is not allowed & they should not charge tax in the invoice.

4. Non-Resident Taxable Person:

The non-resident taxable person applies to those living outside India yet supplying goods/services to the country. According to the GST law, such businesses are obliged to pay advanced GST tax rates for activating their GST registration. However, the registration is only effective for 3 months, with the option to extend it if necessary. Below are some examples of non-resident businesses that fall under this GST act,

• Non-Resident Online Service Provider
• Government Entities-GST TDS Deductor
• Developer of the Special Economic Zone
• Special Economic Zone Unit
• Individuals notified by the UN Embassy/ Body/ Other
• E-commerce Companies-GST TDS Collector

Key Components of GST

The Goods and Services Tax (GST) in India is structured around three primary components:

Central Goods and Services Tax (CGST):

This tax is levied by the Central Government on the supply of goods and services within a particular state. CGST applies to transactions carried out entirely within the boundaries of one state.

State Goods and Services Tax (SGST):

SGST is charged by the State Government on the supply of goods and services within its jurisdiction. Similar to CGST, SGST is also limited to transactions happening within a specific state.

Integrated Goods and Services Tax (IGST):

This tax is imposed by the Central Government on the supply of goods and services that occur between different states or between a state and a Union Territory. IGST is relevant for transactions where goods or services cross state or Union Territory boundaries.