In this article you, I’ll be discussing about the Provisions relating to persons liable for obtaining GST registration and provisions relating to compulsory GST registration.
1. Person Liable For Obtaining GST Registration
Following list of persons are liable for obtaining GST registration:
Supplier engaged in exclusive supply of goodsand whose aggregate turnover in the financial year exceed Rs. 40 lakh, is required to obtain GST registration in the State or Union territory from where the supply is initiated.
In case of special category states, supplier engaged in providing a taxable supply of goods are required to obtain GST registration in case the aggregate turnover exceeds Rs. 20/10 Lakhs in a financial year.
Some special category states are Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand opted for turnover limit of Rs 20 Lakhs
But Kerala and Telangana maintained limit of Rs 10 Lakhs
Supplier engaged in providing a taxable supply of services are required to obtain GST registration in case the aggregate turnover exceeds Rs.20 Lakhs in a financial year.
In case of special category state supplier engaged in providing a taxable supply of services are required to obtain GST registration in case the aggregate turnover exceeds Rs.10 Lakhs in a financial year.
Persons who are registered under Previous law, on the day immediately preceding the appointment date, is liable to obtain GST registration.
The registered taxable person when transfers business to another person on going concern basis, whether on account of succession or otherwise, in such case the transferee or the successoris liable to obtain GST registration.
Transfer of company in case of amalgamation or de-merger in accordance with an order of a high court, tribunal or otherwise.
2. Compulsory GST Registration
Categories of persons who are required to obtain compulsory registration are listed herein below:
The person engaged in the inter-state taxable supply of goods or services or both;
A casual taxable person engaged in taxable supply;
Persons liable to pay tax under reverse charge mechanism;
A non-resident taxable person engaged in providing taxable supply;
A person liable to pay tax under section 9 (5) of the Act (E-Commerce);
The person liable to deduct tax at source (TDS);
Input Service Distributor;
E-commerce operator;
A person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);
The person engaged in supplying online information and database access or retrieval services from a place outside India to an unregistered person;
Persons engaged in the taxable supply of goods or services or both on behalf of another registered taxable person, whether as an agent or otherwise.
Note: person covered under compulsory registration are mandatorily required to obtain registration irrespective of Limit of turnover.
3. Time Limit and some important Points
Every person has to apply for registration in every State in which he is liable, within 30 days from the date on which he becomes liable to registration.
Casual / non-resident taxable persons should apply at least 5 days before their commencement of business.
Registration number in GST will be PAN based and hence, having PAN would be a prerequisite for obtaining registration.
The assessee must obtain separate registration for each State, as registration under GST will be State-wise,
The assessee has an option to obtain a separate registration for each of the business verticals’ in the same State.
Casual/non-resident taxable person may obtain a temporary registration for a period of 90 days (extendable for additional 90 days) will be required to make an advance deposit of GST (based on his estimated tax liability).
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