The goods and services tax came into operation on 1st July 2017 in India. The government chose the Goods and Services tax as part of the unified taxation system. Goods and Services tax is the indirect tax paid by registered payees. It is nothing but part of the Canadian taxation model. GST is now replacing the glitched VAT system in most of the progressing countries.
The GST has to be paid by the eligible taxpayers residing in India. It is now an essential part of the Indian taxation system. If you want to know more about the GST registration, then you are in the right place. You’ll learn more about the GST, Needs of Registration, and GST Registration Eligibility.
Who Should Register for Goods and Service Tax?
The Goods and Service Tax Act of 2017 explains all the requirements for registering for GST. The Law also states the details about the entities and individuals who are required to register for the GST. According to the GST Act 2017, any taxable person needs to be registered with the GST. Here, the taxable person means the person who is involved in any economic activity like trade and commerce. The Law includes individuals, HUF, company, firm, LLP, an AOP/ BOI, any corporation or Government company, body corporate incorporated under laws of a foreign country, co-operative society, local authority, government, trust, an artificial juridical person under the definition of “Taxable Person.”
Registration Eligibility for Goods and Services Tax (GST)
It is essential to understand everything about the taxable persons. Here are the eligibility requirements to register for GST.
- Interstate Taxable Supply
Interstate or intrastate supply of goods and services requires the GST registration. So, any individual performing these activities should register and obtain GSTIN.
- Business Owners
Trading of Goods or providing services should attract GST compliance. Anyone performing such activities is liable for GST registration.
- Input Service Providers
GST supports the Input Tax credit. So, the Input service providers should register under the Goods and Service Act, 2017, in India.
- E-commerce Sellers
The E-commerce sellers who deal with the supply of goods should register for GST Identification Number. All E-commerce sellers and operators must apply for GSTIN, irrespective of Turnover.
The Agents of the taxable person who acts on behalf of the supplier must register for the GSTIN.
GST Registration Mandates for the Individuals
Not just the businesses, but the individuals are required to obtain GST Numbers. Although there are slightly different mandates for eligibility for individuals. Here are the eligibility requirements for Individuals under Goods and Services Act, 2017.
- Any person who performs the supply of goods and services exceeding threshold limits.
- Individual Who is Liable for mandatory registration according to the Law.
Any individual passing these requirements is eligible for GST Registration.
GST Requirements for Service Providers
The service sector is an essential part of the Indian economy. The Goods and Services Tax includes the Services sector too. So, the requirements for service provider companies are enforceable. Here are the GST registration requirements for the Service Providers industry.
- Interstate and Intrastate service providers are liable for GST registration. Not just these, but the international service providers should get GST registration done.
- Any service provider with a Turnover of 20 lakh Indian rupees or more should immediately register for the Goods and Services Tax.
Minimum Turnover for GST Compliance
GST compliance depends on the minimum turnover threshold for taxable persons. Currently, there are different turnover thresholds for different types of companies and individuals. Also, the limits are different in particular states like the North-Eastern states in India.
- The turnover threshold for Goods supplier business is INR 40 Lakhs. Anything above that requires the GSTIN.
- The service providers with Turnover of INR 20 Lakhs or more will attract GST compliance.
As we said earlier, the particular Indian states like the North-eastern states have different threshold limits. Here are the turnover threshold limits for GST compliance.
- The goods related businesses should register for GST if Turnover exceeds INR 20 Lakhs.
- If the Turnover for Service providers exceed INR 10 Lakhs, then it attracts the GST compliance in the state.
Professional GST Registration Services from Efiling.co.in
GST registration and compliance is a very tedious task. The companies appoint experts to handle GST related tasks. Individuals and small businesses do not afford in-house professionals. So, it is easy to outsource such tasks. The professional GST registration services from Efiling.co.in are suitable for all of the businesses. If you are not sure if your business is eligible for GST compliance, then you should hire professional services from Efilling.co.in.