In June 2016, the Finance Ministry, Government of India had made public the much awaited Model GST law that happens to define a ‘taxable person’ and then further goes on to describe how GST and GST Registration will be put into force across India.
Who needs to register for GST then?
If you are a person or a group of persons carrying out business in any nook and corner of the Indian State and boast of a goods and services business with an aggregate turnover of over 9 lakhs in a financial year, then you need to register for GST. The limit has been kept such that the small suppliers are provided the much needed relief.
If you are in North Eastern States including Sikkim, you need to obtain a GST registration if the worth of taxable supply of your goods and services amounts to over Rs. 4 lakhs.
Here, ‘aggregate turnover’ means the sum total of all non-taxable and taxable supplies, exempt supplies and exports of goods and/or services of a person possessing a PAN, and is calculated on all India basis. It excludes taxes under the CGST Act, SGST Act and the IGST act and does not explicitly include the worth of supplies on which tax is imposed on reverse charge basis.
Who needs to register irrespective of anything?
In addition to the above classes, there are classes and categories who need to register regardless. For them, no turnover clauses apply. They are listed below.
Persons involved in inter-State supply which is taxable. There’s no threshold here.
Persons who are needed to disburse tax under reverse charge, irrespective of the threshold
Casual taxable persons. It refers to a person who intermittently undertakes transactions that involves supply of goods and/or services to further their business, done by himself/herself or through an agent, in a taxable area where he doesn’t have a fixed place to carry out his/her business.
Persons who are required to deduct tax
Taxable persons who don’t reside in India, irrespective of the threshold
Persons, who as agents or otherwise, supply goods and/or services on behalf of other taxable persons who are registered under the law of the land
Persons who supply goods and/or services, other than branded services, through electronic commerce operator, irrespective of the threshold
Input service distributor, i.e. an office of the supplier of goods and / or services which receives tax invoices u/s 23 towards receipt of input services and then issues tax invoices for the purposes of issuing the credit of CGST (SGST in State Acts) and / or IGST paid.
Aggregator who has his own brand name or his own trade name to prove services, irrespective of the threshold
Each and every e-commerce operator, regardless of the threshold
Other person or group of persons as may be notified from time to time by the Central Government or a State Government upon the recommendations of the Council.
If that makes for a complicated read, here’s a table to simplify it for you:
Nature of the supply
Taxable inter-state supply
Exempted inter-state supply
Intra-state supply (up to Rs. 9 lacs)
Intra-state supply (exceeding Rs. 9 lacs)
Intra-state supply (up to Rs. 9 lacs) exempted Inter-state supply of any value
Casual Taxable person
Reverse charge – for personal use up to prescribed limit
Reverse charge – for personal use beyond prescribed limit
Reverse charge – Other than personal use
Persons required to deduct TDS providing intra state supply up to Rs. 9 lacs
Input service distributor
Agent or the like
Intra-state supply up to Rs. 9 lacs as an agent
Electronic commerce operator
Supply through electronic commerce operator – Branded or otherwise
Aggregator – supplying services
Intra-state supply – Exempted Rs. 5 lacs
Intra-state supply – Taxable Rs. 5 lacs
If the aggregate turnover exceeds Rs. 10 lacs
So, the government clearly underlines who needs to register and who don’t. Hope this article has summed it up for you but to delve further, here are a few points to note:
If you are an agriculturist, you are exempted from GST registration.
You must apply and register for GST within 30 days of becoming liable to do so. Different procedures exist depending on whether you are a new customer or whether you are already registered under one of the States. In case of the latter, remember that you still need to register although there is a process that will simplify the hard yards.
PAN card is a must to register. No PAN card, no eligibility.
Special provisions exist if you are a casual taxable person or a non-resident taxable person
Registration certificate that are issued will be valid for 90 days from the date of registration and could even be extended further depending on the need but they are needed to deposit tax in advance on the basis of estimated tax liability.