Requirement of GST Registration under The GST Act.

Before getting to know who is liable to get registered under Goods and Services Tax Act, it is necessary to know why this registration is required by any person.

Registration is the most fundamental requirement for identification of tax payers which ensures a smooth tax compliance in the economy. This registration is essential part of the system. Without a proper registration number, a person can neither collect tax from his customers nor claim any credit of tax paid by him. It is a legal authorization by the government to collect taxes from the customers and pass on the benefit of credit availed by him.

Requirement of GST Registration under the act:

Persons liable for GST Registration (Sec 22)

1. Persons having total turnover more than or equal to Rs 20 lakhs (Rs 10 lakh in respect to North Eastern State and Special category States).

2. Persons having registration under previous laws like VAT, Service Tax etc. on the day prior to when this act came in force.

3. Where the business carried on by a taxable person is transferred under succession or otherwise, transferee is liable to be registered with effect from date of transfer or succession.

4. Where the business is transferred under court/tribunal’s order under merger/amalgamation/demerger etc.

Compulsory Registration (Sec 24)

1. Persons making any inter-state taxable supply.

2. Casual taxable person who does not have a fixed place of business in the State or Union Territory from where he wants to make supply.

3. A person receiving supplies on which tax is payable by recipient on reverse charge basis.

4. Those ecommerce operators who are liable for GST payment under section 9(5).

5. Non- Resident taxable persons who do not have a fixed place of business in India.

6. Persons who are required to deduct tax under section 51 (TDS).

7. A person who supplies on behalf of some other taxable person (i.e. an Agent of some Principal).

8. Suppliers other than notified under section 9(5) who supply through an e-commerce operator.

9. E-commerce operators, who provide platform to suppliers to supply through it.

10. Every person supplying online information and database access or retrieval services from a place outside India to a person in India other than a registered person.

11. Input service distributor, whether or not separately registered under this act.

12. Person/ class of persons notified by the Central/State Government.

It is also necessary to know who is not required to be registered under GST Act:

Persons not liable for GST Registration

1. Any person who is engaged exclusively in the business of supplying goods or services that are not liable to tax under GST.

2. Any person who is engaged exclusively in the business of supplying goods or services wholly exempt from tax under GST.

3. An agriculturist, to the extent of supply of produce out of cultivation of land

4. Special category of persons as notified by the government.

#Registrations