Registration under GST

Hello friends, Today I’m going to explain the topic "Registration under GST"

You can read my previous Blogs on GST i.e. "GST in India an Introduction" & "GST Framework in India"

You can Read all AatmaNirbhar Bharat or Special Economic Package Phases in ONE CLICK

Summary of the Blog:

• Compulsory Registration
• Special Provision for CTP & NRTP
• Persons not liable for Registration
• The diagram on Threshold Limit

Compulsory Registration

• Any business whose turnover in an FY exceeds Rs 20 lakhs (Rs 10 lakhs for North Eastern and hill states).

[Note: If your turnover is the supply of only exempted  goods/services which are exempt under GST, this clause does not apply.]

• Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax, etc.)  requires to register under GST, too.
• The business that is registered has been given or transfer to Demerged the transferee shall obtain registration with force from the date of transfer.
• Anyone who drives the Inter-state supply of goods
• Casual Taxable Person (CTP)
• Non-Resident Taxable Person (NRTP)
• Agents of a supplier
• Those paying tax under the Reverse Charge Mechanism basis (RCM)
• Input Service Distributor (ISD)
• E-commerce Operator (ECO)
• A person who supplies via ECO
• A person supplying Online Information and Database Access or Retrieval Services (OIDAR) from a place outside India to a person in India, other than a registered taxable person

🖋🖋Casual Taxable Person (CTP) 

A person who infrequently supplies goods and/or services in a Territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a CTP as per GST.

🖋🖋Non-Resident Taxable Person (NRTP)

When a non-resident infrequently supplies goods/services in a territory where GST applies, but he does not have a fixed place of business in India. According to GST, he will be treated as a Non-Resident Taxable Person (NRTP) . It is related to above except the non-resident has no place of business in India.

🖋🖋Input Service Distributor (ISD)

Input Service Distributor (ISD) means an office of the supplier of goods or services which shows tax invoices on receipt of input services and issues tax invoices for the end of distributing the Credit of CGST or SGST or IGST paid on the said services to your branch with same PAN. (It must be a supplier of taxable goods/services having the same PAN as that of the office pointed to above).

Hence, only credit on ‘Input Services’ can be shared and not on input goods or capital goods.

🖋🖋Turnover includes

The aggregate value of all taxable supplies 

+ exempt supplies

+ export of goods or services or both

+ inter-state supplies

+ It includes supplies made by a person on behalf of his principals (eliminates the value of job-worked goods if he is a job-worker) 

Aggregate Turnover to be computed by analyzing all the persons having the same PAN number based on all India. 

Special Provision for CTP & NRTP

Casual Taxable Person / Non-Resident Taxable Person 

  ⇓

Apply at least 5 days prior to commencement of business

   ⇓

Registration for a period of 90 days or period specified on the application

               [Extn for a further period not exceeding 90 days]

    ⇓

An advance deposit of an amount estimated tax amount using Application Reference Number (ARN)

              [Additional deposit (if any) for Extended period]

     ⇓

The amount deposited shall be credited to Electronic Cash Ledger (ECL)

[Use it for payment of Tax, Cess, Interest, Penalty or even refunded]

Persons not liable for Registration 

• The person engaged in the business of supplying only non-taxable goods or services under GST Acts. 
• Agriculturist, to the extent of supply of produce out of cultivation of land and 
• Persons only engaged in making taxable supplies of goods or services or both, the total tax on which is liable to be paid on RCM basis by the recipient of such goods.

The diagram on Threshold Limit

Summary of the Threshold Limit

States	u/s 22	u/s 10
Manipur, Mizoram, Tripura, and Nagaland	10 lakh	75 lakh
Arunachal Pradesh, Uttrakhand, Sikkim, and Meghalaya	20 lakh	75 lakh
Puducherry, Telangana	20 lakh	150 lakh
Others	20/40 lakh	150 lakh

Thanks for reading friends, I will bring more such interesting topics related to Taxation & Updates regarding COVID-19 Impact on various Business Sector as well as Tax implications or Tax Announcements due to COVID-19

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