Who is exempted from GST Registration
Hemlata Khandelwal / 2021-06-11 11:31:52

Goods and Services Tax

GST means Goods and Services Tax means a tax on goods and services. Goods mean car, TV, bread, clothes, etc. Services mean mobile networks, banking, air travel, movies, etc.

Who has to do GST registration?

Businessmen whose business was registered under the existing tax laws before GST, such as Central Excise Act, Service Tax Act, Central Sales Tax, or State VAT Act, were migrated directly to GST on the basis of PAN number and given a registration number. who was not registered under these rules,

And their business is within the purview of GST Registration (Annual Turnover of 40 Lakhs), they have to apply for GST Registration. Also, registration will be mandatory for new businessmen who start a business with these capabilities. As per the rules, as soon as your business comes under the purview of GST, it is necessary to apply for registration within 30 days.

Note: Once the registration certificate is generated, it will be permanent. Your certificate will be valid until it is surrendered on your behalf or canceled or suspended, or withdrawn for serious violation of the rules.

Who needs GST registration?

It is mandatory for the businessmen whose annual turnover is more than 40 lakh rupees to get them registered under GST. For the businessmen of Northeast states, the annual turnover limit has been kept at only Rs. 20 lakh. If you fall within this limit, then whatever goods or services you supply, you will have to pay GST to the government.

Why GST registration is necessary?

You will get legal recognition as a supplier of goods and services only after getting registered under GST. You will get the convenience of collecting tax under GST from the buyers of your goods or services and then later adjusting the same with the GST paid on your own purchases.

In this way, if you are not the final consumer, then whatever level you have paid GST, you will get it back from the government by way of adjustment. If you come under the purview of GST registration, then it will be mandatory for you to mention the GST number on the board and bill of your company or establishment.

Who is exempted from GST registration?

Businesses with an annual turnover of less than Rs 40 lakh will not come under the purview of GST. If you are involved in the business of any such goods or services which are exempted from tax under the GST Act, then you do not need to register in GST.

In these situations also registration in GST will have to be done.

If your annual turnover is less than Rs 40 lakh and your income comes in taxable income, even then in some situations, it is mandatory for you to get GST registration done.

  • Interstate Suppliers

If you supply goods and services from one state to another Also, even if your income comes within the taxable income limit, you will still need to get GST registration done. Even if your annual turnover is less than 40 lakh rupees.

  • Occasional businessmen.

In this category, there are people who do business by moving from one state to another, but there is no fixed place to supply their goods or services. He does his business according to favorable opportunities. For example- Temporary trading of fire-crackers around the Deepawali, Rakhi businessè around Rakshabandhan, or those doing business of colors and pichkaries during Holi. If their income is also taxable, then it is mandatory for them to get GST registration done.

  • Non-resident taxable person

A non-Resident Taxable Person is considered to be one who resides in any country outside India. Here he neither has a permanent residence nor a permanent business place i.e. Office. He sometimes comes to India and transacts. He is also in the category of taxpayers. It is mandatory for such businessmen to get GST registration done.

  • Supplies on behalf of the taxable person:

If you deal in the goods and supplies as an agent of another business then the business his business comes under the eligibility of GST Registration, then it is mandatory for you to take GST Registration. Agents, Brokers, Dealers, etc. come in this category.

  • Input Service Distributor:

In GST, Input Service Distributor is defined as the office of the supplier of any goods or services. These can be of the main office, administrative office, corporate office, regional office, depot, and other types. This happens in a situation when the goods are made in many places, but their billing is happening in one place only. They also have the right to Input a Tax Credit under the cover of Tax Challan. If it is related to Taxable Person then it is mandatory to get GST registration done.

  • Aggregators providing services under their own brand name:

In the category of aggregator, those companies come in whose business they neither have their own staff nor have their own goods. Only their brand name is traded. Like Ola, Uber, etc. In these, the vehicles belong to someone else, someone else to take the service. The company only provides a platform to both the parties to take each other's facilities and takes its commission. It is also mandatory for them to get GST registration done.


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