GST Registration
Aggregate turnover of supplier of Goods > 40 lacs
Aggregate turnover of supplier of Services > 20 lakhs
Making sales outside your own state
E-commerce supplier
ESSENTIAL - GST Registration
Simplify. Comply. Prosper
Registration under GST is mandatory once an entity crosses the minimum threshold turnover. Under the GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalised.
When to register?
Businesses having aggregate annual turnover of more than Rs. 40 lakhs in case of supplier of goods (Rs. 20 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) and Rs. 20 lakhs in case of supplier of services (Rs. 10 lakhs in States of Manipur, Mizoram, Nagaland and Tripura) have to be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST in one State.
Registration under Composition Scheme
An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover up to Rs 1.5 crore (Rs. 75 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand) in case of supplier of goods and restaurant services and Rs. 50 lakhs in case of supplier of services. Under the composition scheme, supplier of goods and restaurant services needs to pay tax equal to 1% to 5% on his turnover and needs to file his returns annually with quarterly payments. Supplier of services needs to pay tax equal to 6% on his turnover and needs to file his returns annually with quarterly payments.
Voluntary Registration
The small businesses, having turnover below the threshold limit can voluntarily opt to register.
Benefits
- Provide input tax credit to customers – Since your business is legally recognized, you can issue taxable invoices. Buyers, in turn, can take input credit on their purchases. This will help expand the customer base and make it more competitive.
- Take input credit – Voluntarily registered persons can take input credit on their own purchases and input services like legal fees, consultation fees etc. This will eventually increase their business margin and profitability.
- Smooth Inter-state trade – Businesses registered under GST can make inter-state sales without many restrictions. Thus, it widens the potential market for SMEs. These SMEs can also opt for selling their goods online through the e-commerce platform.
- Be compliant and have good rating – Registration for GST will ensure that the business is compliant and scalable without any barrier of future registration. Also under GST, compliance rating will be maintained and if this is done correctly, it can attract additional business.
- Better standing – Customers may prefer dealing with other registered businesses. Also a registered business will find it much easier in other business areas such as getting bank loans, renting premises.
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This information is in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Mind Sync does not accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any information provided herein. On any specific matter, reference should be made to the appropriate advisor.