GST

Brief about GST Registration

Every business or entity that is involved in the buying and selling of goods/services have to register for GST. It is mandatory for companies whose turnover exceeds the threshold limit of Rs 40 lakhs for trading and manufacturing or 20 lakhs for service industry (Rs 10 lakhs for special category states), to register as a normal taxable person. If authorities get to know that a business fulfilling the eligibility is carrying its operations without registering to GST, there could be major consequences arising which include penalties, creating a negative image on authorities about the trustworthiness, attracting frequent checks, or any other unwanted issues. That’s why it becomes imperative to adhere to the GST rules.

Compulsory Registration

• All individuals/entity that are obliged to get registration under GST include -

• All Entities/Casual Taxable persons making Interstate Taxable supply and whose turnover exceeds Rs 40 lakhs (for trading and manufacturing) or 20 lakhs for service  (Rs 10 lakhs for special category states)

• Non-Resident Taxable persons making Taxable supply.

• E-commerce operator.

• Agents of a supplier making supply on behalf of a taxable person.

• Persons required to pay tax under Reverse Charge scheme.

Exemptions under GST

• The following people and entities are not bound under obligation to get registration mandatorily:

• Agriculturalists.

• Activities that do not come under the supply of goods or services. (Examples - sale of a building or land, and services provided by an employee.)

• Businesses that make non-GST/ non-taxable supplies. (Examples - aviation turbine fuel, electricity, natural gas, high-speed diesel, and petrol.)

• Businesses that make exempt/ nil-rated supplies.

• Businesses that do not fall under the threshold exemption limit.