GST Registration: Which Taxpayers Are Required to Obtain GST Number?
If you are operating a business or a profession in India, or someone who is about to start a business, it is important to understand when you should get a GST registration. Under the Indian GST law, registration is mandatory for certain types of taxpayers, while others may register voluntarily to claim benefits like input tax credit (ITC). Whether you are a small business or an e-commerce seller, you should know when you are required to get GST registration.
GST Registration Limit
Under the Goods and Services (GST) Act, the turnover limit is as follows:
- For Supplying Goods: If your annual turnover is more than Rs 40 lakh (or Rs 20 lakh for special category states), then GST registration is mandatory.
- For Supplying Services: If your annual turnover is more than Rs 20 lakh (or Rs 10 lakh for special category states), then GST registration is mandatory.
Who Are Compulsorily Required to Get GST Registration?
The following persons are mandatority required to get a GST Number:
- Persons Required to Deduct TDS/Collect TDS: Those persons who are liable to deduct TDS (Tax Deducted at Source) or collect TCS (Tax Collected at Source) are mandatorily required to obtain a GST Number.
- Casual Taxable Person (CTP): Those persons, or businesses, that supply goods and services occasionally must get GST registration.
- Inter-State Suppliers: Businesses which supply goods from one state to another.
- Under RCM: Those persons who are required to pay GST directly to the government and not the supplier under the Reverse Charge mechanism (RCM).
- Non-resident Taxable Persons: Non-resident individuals who are supplying goods or services in india without a fixed business location.
- E-Commerce Platforms: the online platforms like Amazon, Flipkart, or Swiggy that facilitate the movement of goods or services of other suppliers on their website.
- Input Service Distributors (ISD): These are company offices that receive bills for services and then pass on the tax credit to their different branches.
- Sellers Using E-Commerce Platforms: If you are a seller or business using an e-commerce platform to sell your products or services, you also need GST registration, as these platforms also collect TCS.
- Agents or Principals: taxpayers who sell goods or services on behalf of others, either as an agent or the principal, must register under GST.
- Foreign Service Providers: Companies that are outside India that offer digital services like software, online databases, or streaming to unregistered customers in India also need to register and pay GST in India.
- Government Offices: Government offices that are required to deduct TDS under the CGST Section 51, must get GSt registration.