GST registration is a process by which a taxpayer gets themselves registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration.
Please note – If you are operating from more than one state, then you will have to take separate GST registrations for each state you are operating from.
Who is liable to get GST registration ?
All the businesses supplying goods, whose turnover exceeds INR 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is INR 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.
The turnover limit is INR 20 lakh, and in the case of special category states, INR 10 lakh, for the service providers.
Below, is the list of certain businesses for which GST registration is mandatory irrespective of their turnover:
Goods and Service Tax is a tax levied on supply of goods and services right from the point of manufacture to the point of final consumption by the user. GST is a simplified indirect tax structure, wherein tax paid on goods/services procured by one person at one stage can be availed as credit while passing on the goods/services to the next stage, until they reach the final consumer who bears incidence of tax.
In the GST regime, businesses whose turnover from sale of goods exceeds Rs. 40 lakhs (Rs 20 lakhs for NE and hill states) or turnover from providing services exceeds Rs 20 lakhs , are required to register as a normal taxable person. For certain other businesses, registration under GST is mandatory irrespective of turnover, like those paying tax under the reverse charge mechanism, supply to SEZ, Exports etc.
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