Mandatory Registration under GST
1. Every Person on exceeding the following aggregate turnover would be liable to get registered under the GST Act:
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.
Rest of India (Except Jammu & Kashmir*)
*Person making supply from Jammu & Kashmir are not required to register under GST, as GST Act does not applies to the state of Jammu and Kashmir.
2. Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day
3. Following person are required to get themselves mandatorily registered even if their aggregate turnover does not exceed the limits specified in point 1 above:
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) electronic commerce operators required to pay tax under sub-section (5) of section 9 of Central Goods and Service Tax Act;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax at source (Section 51),
(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether separately registered or not;
(ix) persons who are required to collect tax at source (Section 52);
(x) every electronic commerce operator;
(xi) 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
(xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.
“Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State. Supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.
Situations when GST Registration is not required
· any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under Good and Services Tax Act.
· an agriculturist, to the extent of supply of produce out of cultivation of land.
Provisions for Voluntary Registration under GST:
A person, though not liable to be registered under the GST law may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
Provisions for Deemed Registration under GST:
The grant of Registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act will be deemed to be a grant of registration or the Unique Identity Number under Central Goods and Services Tax Act. Consequently, grant of registration or the Unique Identity Number under the Central Goods and Services Tax Act will be deemed to be a grant of registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act
Advantages of GST Registration:
Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
a) Legally recognized as supplier of goods or services.
b) Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
c) Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
d) Make inter-state sales without many restrictions. Otherwise, they will be treated as casual taxable persons and accordingly such registration is required for each tax period (i.e. 90 days or less)
Efforts required to be made for smooth implementation of GST:
a) Changes required to be made in ERP/Accounting Packages to make it GST complaint so that all input/output taxes and other sales information required for GST filing can be easily obtained.
b) Staff knowledge of GST – A Registered person has to file at least 37 returns per registration. So, proper staff knowledge should be there to cater the need of compliance and gather the information in the best possible way.
Penalties for Not Registering under GST:
Any offence under GST for which penalty is not specifically mentioned will be liable to a penalty extending to Rs.10,000/- or the amount of tax evaded, whichever is higher.
Thus, GST Registration, though will result in additional return requirements, will ease the way of doing business. Seamless credit flow between various registered dealers will ensure all the trades are well accounted for and reduce the working capital requirements of the entity.