Who is eligible for GST registration?

To kickstart the Registration for GST process, businesses must first determine whether they are eligible to register under the latest indirect tax regime.The New GST Registration and Eligibility Criteria is mandatory to any individual or group involved in commercialized business, as it enables the proprietary to discharge taxes and avail the benefits of input tax credit. In the GST regime, certain businesses have to register mandatory. In case they carry business operations without the registration, heavy penalty shall be imposed on them. According to the GST Council, there are various GST Filing criteria that make a business entity liable to obtain GST Registration. So In this blog we are explaining what is eligibity criteria for GST  and how Legalraasta will further guide you in explaining the procedure for filling GST in easier and cost-effective manner.  

What is GST Registration?

The Goods and Services Tax(GST), is a value-added tax levied on services and is an indirect tax that is paid when consumer goods or services. Furthermore, companies selling goods and delivering services must pay their fair share of GST as well. GST amalgamates several different central and state indirect taxes and thereby generates additional revenue for the government all the while eliminating the cascading effect of indirect taxes. Likewise, Registration for GST was implemented in April 2017, and all qualifying enterprises were required to register under the new regime.

Eligibility Criteria under GST Filing

Individuals registered under the laws existing before the implementation of GST, such as excise, VAT, service tax etc. Business with a turnover above the threshold limit of 20 lakh rupees. The limit is 10 lakh rupees for states like Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and North Eastern states of India. Casual taxable person or Non-Resident Indian taxable person. Agents of a supplier, Input Service Distributor, and E-commerce operators or aggregator. Those paying taxes under the reverse charge mechanism for GST Registration. A person other than a registered taxable person, who is supplying online information and database access or retrieval services from a place outside India to a person in India. Any business involved in the supply of goods whose turnover in a financial year exceeds Rs.40 lakhs for Normal Category states  and Rs.20 lakhs for Special Category states. Any business involved in the supply of services whose turnover in a financial year exceeds Rs.20 lakhs for Normal Category states  and Rs.10 lakhs for Special Category states. When a business which is registered has been transferred to someone or demerged, the transferee shall take registration with effect from the date of transfer. A person making inter-state supplies and  person supplying online information and database access or retrieval (OIDAR) services from a place outside India to a person in India, other than a registered taxable person.  

Who is a Casual Taxable Person under GST Filing?

A person who occasionally supplies goods or services in a territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a casual taxable person as per GST. For Example: A person who has a place of business in Bangalore supplies taxable consulting services in Pune where he has no place of business would be treated as a casual taxable person in Pune.  

Who is a Non-Resident Taxable person under GST Registration?

When a non-resident occasionally supplies goods or services in a territory where GST applies, but he does not have a fixed place of business in India. As per GST, he will be treated as a non-resident taxable person. It is similar to above except the non-resident has no place of business in India.  

Who is an Input Service Distributor for GST Filing?

‘Input Service Distributor’ means an office of the supplier of goods/services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST/SGST/IGST paid on the said services to your branch with the same PAN.It must be a supplier of taxable goods /services having the same PAN as that of the office referred to above. Thus, only credit on ‘input services’ can be distributed and not on input goods or capital goods. This will be a new concept for assessees who are currently not registered as input service distributors. However, this facility is optional in nature.  

Who is a composition taxpayer?

A composition taxpayer refers to those registered under the composition scheme who need not collect GST from his customers at normal rates. Instead, he can pay tax at a nominal rate or lower rates to the government on the basis of turnover or receipts on a quarterly basis while filing CMP-08. There are certain conditions defined for such taxpayers. At the inception of GST, only suppliers of goods could opt into the composition scheme governed by Section 10 of the CGST Act with annual turnover upto Rs.1.5 crore. From 1st April 2019, service providers are also given an option to join a similar scheme. The annual aggregate turnover limit must be up to Rs.50 lakh for GST registration.  

Who is a QRMP taxpayer?

A registered person who is required to furnish a return in GSTR-3B, and who has an aggregate turnover of up to Rs.5 crore rupees in the preceding financial year, is eligible for the QRMP Scheme. Under the scheme, one can file GSTR-1 and GSTR-3B once in a quarter whereas make tax payment every month in form PMT-06. Further, if B2B sales invoices need to be uploaded on the GST portal monthly, then Invoice Furnishing Facility (IFF) can be used.  

GST Registration by Type of Taxable Person

Every person has to apply for registration in every State in which he is liable, within thirty days from the date on which he becomes liable to registration. Casual / non-resident taxable persons should apply at least five days before their commencement of business. Registration number in GST will be PAN based and hence, having PAN would be a prerequisite for obtaining registration. The assessee must obtain separate registration for each State, as registration under GST will be State-wise, The assessee has an option to obtain a separate registration for each of the ‘business verticals’ in the same State. Special provisions of GST Registration for casual taxable person and non-resident taxable person A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Section 24 provides for special provisions relating to casual taxable persons and non-resident taxable persons under GST. Casual/non-resident taxable person may obtain a temporary registration for a period of 90 days and extendable for additional 90 days. A person who obtains registration u/s 24, will be required to make an advance deposit of GST is based on his estimated tax liability. Conclusion It should be emphasized that, in terms of GST on immovable property, the tax can be levied on flat maintenance fees charged by a housing society as well as other services. In other circumstances, the GST law has been left open-ended, causing confusion among taxpayers. As a result, the relevant authorities must issue appropriate decisions to fill the gaps that have been left open. Now that you know  who can apply for GST and what is eligibity criteria for it and , it’s critical to maintain your company up to date on the current GST  Filing to avoid fines. LegalRaasta will guide you in getting all necessary Documents and Registration required to get GST Registration, please click on the following link to connect with our consultants. Legalraasta contains a wealth of information on GST as well as other financial and taxation-related topics.