Select your interest and accelerate your financial growth.
 

What is the eligibility criteria for registrations under GST?

GST

Section 22 to Section 30 of the CGST Act, 2017 deals with the registration by the every supplier of goods and services. Please find below note on registration under GST with effect from 1st April 2019.

1. Every person exclusively engaged in supply of services and whose aggregate turnover exceeds Rs. 10 lakhs in case of the States of Manipur, Mizoram, Nagaland and Tripura and whose aggregate turnover exceeds Rs. 20 lakhs for rest of States, shall be liable to be registered under this act in the state or union territory, from where he makes of taxable supply of goods or services or both;

2. Every person exclusively engaged in supply of goods and whose aggregate turnover in a financial year exceeds Rs. 20 lakh in case of the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand and whose aggregate turnover exceeds Rs.40 lakhs (for rest of the States), shall be liable to be registered under this act in the state or union territory, from where he makes of taxable supply of goods or services or both;

3. Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

4. However, there are certain exclusion to the above registration requirements, which are as follows

a. Persons engaged in making supplies of following goods falling

Sl. NoTariff ItemDescription of goods
12105 0000Ice cream and other edible ice, whether or not containing cocoa
22106 9020Pan Masala
3Chapter 24All goods i.e. Tobacco and manufactured tobacco substitutes

b. Person taking voluntary registration in terms of Section 25 (3) of the CGST Act, 2017;

c. Person required to take compulsory registration in terms of Section 24 which includes
i. Person engaged in Inter State taxable supply of goods;
ii. Person liable to pay tax under reverse charge mechanism;
iii. Person who are required to pay tax under sub-section (5) of section 9;
iv. Non-resident taxable person making taxable supply;
v. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
vi. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
vii. Input Service Distributor, whether or not separately registered under this Act;
viii. Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
ix. Every electronic commerce operator who is required to collect tax at source under section 52;
x. Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and
xi. Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

Person not liable for registration under GST

Following persons shall not be liable to registration, namely-

1. Persons engaged exclusively in the business of supplying goods or services or both which are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

2. An agriculturist, to the extent of supply of produce out of cultivation of land.

In addition to the above, based on the recommendation of GST Council, the Government has specified following category of persons who may be exempted from obtaining registration

1. Persons making only reverse charge supplies, the tax on which is liable to be paid on reverse charge basis by the recipient.

2. The person engaged in making inter-state supplies of taxable services and having an aggregate turnover of less than INR 20 Lakhs or INR 10 Lakhs in case of special category states, in a financial year.

3. Persons making inter-state taxable supplies of notified goods and having an aggregate turnover of up to INR 20 Lakhs or INR 10 Lakhs i.e. handicraft goods, notified products made by the craftsmen.

4. Casual taxable persons making inter-state taxable supplies of notified goods and having an aggregate turnover of up to INR 20 Lakhs or INR 10 Lakhs i.e. handicraft goods, notified products made by the craftsmen.

5. Job workers making inter-state taxable supplies of services to a registered person and having an aggregate turnover of up to INR 20 Lakhs or INR 10 Lakhs other than services in relation to jewellery, goldsmiths, silversmiths.

6. Persons making supplies of services, other than supplies specified u/s 9(5), through an E-Commerce Operator and having an aggregate turnover of up to INR 20 Lakhs or INR 10 Lakhs.

Composition Dealer registration under GST

Any person who does not opts to pay tax under Section 9 (1) of the CGST Act, and whose aggregate turnover exceeds Rs.1.50 crores may opt for registration as Composition dealer.

In the case of following States, the aggregate turnover limit is Rs. 75 Lakhs instead of Rs.1.5 Crores

• Arunachal Pradesh,
• Manipur,
• Meghalaya,
• Mizoram,
• Nagaland,
• Sikkim,
• Tripura,
• Uttarakhand

Person are not eligible to opt for Composition Levy

1. Person making inter State Supply of goods;
2. Person engaged in supply of goods through e-commerce operator;
3. Person engaged in supply of exempt from levy of GST;
4. Manufactures supplying goods such as –
a. Ice cream and other edible ice whether or not containing cocoa
b. Pan Masala
c. Tobacco and manufactured tobacco substituted

Composition Scheme extended for Service providers or Mixed Suppliers

With effect from 1st April 2019, even service providers (except restaurant service providers) or mixed suppliers (engaged into supply of goods or services or both) and having an aggregate turnover of up to Rs. 50 Lakhs from 1st day of April of a financial year, from “First supplies of goods or services or both” may opt for this Composition Scheme.

Related posts

Leave a Comment

Your email address will not be published. Required fields are marked *