What Is Indian GST Registration, When GST Registration Is Mandatory

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Let’s know what is Indian GST registration first.

GST is Liable on Supply- Supply can be either supply of Goods or Services. So, you are liable for GST registration if:

Supply of Goods:

  1. If you Supply Goods and your Aggregate turnover in a Single Financial Year is: more than 40* Lacs.
  2. *In Case of the Following States the turnover of 40 Lacs will be a little different:
StatesTurnover Limit
Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, UttarakhandExceeds Rs. 20 Lac
Kerala and TelanganaExceeds Rs. 10 Lac

Supply of Services:

  1. If you supply Services and your Aggregate Turnover in a single Financial Year is: more than 20* Lacs.
  2. *In Case of the Following States the turnover of 20 Lacs will be a little different:
StatesTurnover Limit
Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand Kerala and TelanganaExceeds Rs. 10 Lac

Further Registration under GST is compulsory even if the above Limits are not crossed if:

  • The person engaged in the inter-state taxable supply of goods or services or both;
  • Understanding this point: Inter-State Supply means when a person is supplying Goods or Services from one State to Another. Say, You are a Manufacturer in Himachal Pradesh and Someone from Chandigarh ask you to supply your goods in Chandigarh, this is a common example of Inter-State supply and even if you do not cross limits of 40 Lac/20 Lac./10 Lac. Turnover, you still need a GST registration.
  • Note: Registration in this Case is Mandatory irrespective of your turnover.
  • Exceptions to this Rule:
  • A person Making Supply of Service: I.e. If a Person Makes Supply of Services even Inter-State and the Threshold limit of Rs. 20 Lacs/ 10 Lacs is not crossed, you don’t need GST registration.
  • Persons engaged in supply of handicraft goods making inter-state supply are exempt from GST registration, if the aggregate value of all their supplies on all India bases does not cross above referred limits.
  • A job worker with turnover less than 20/10 lakhs is exempt from registration, even if he makes inter-State supplies to registered person. This exemption is not available to Jewellery, goldsmiths’ and silversmiths’ wares and other articles manufactured on job work basis. (For details, please see Notification No. 7/2017–Integrated Tax).
  • A casual taxable person engaged in taxable supply;

What is a Casual Taxable Person? “Casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

Eg: Say, you are a Fashion Designer and from Delhi, your turnover is Rs. 8 Lacs P.A., you have an exhibition in Mumbai, where you will be displaying and also selling your beautiful dresses. Do you require GST Registration? Yes. But why?

These are the conditions related to registration of Casual Taxable Person.

If a person:

  • occasionally undertakes transactions involving supply of goods or services or both
  • in the course or furtherance of business
  • whether as principal, agent or in any other capacity
  • in a State or a Union territory where he has no fixed place of business.

In this example all conditions are fulfilled because:

  • Going to another city for exhibition is an occasional transaction which might include supply.
  • As your intent is to sale your goods, therefore you are going for furtherance of your Business.
  • You are a principal (owner of the Designer store)
  • As your fixed place of Work is Delhi but going to Mumbai for Exhibition fulfils the condition of ‘in a State or a Union territory where he has no fixed place of business’.

But don’t worry this registration as the name suggests is not Permanent, its just a casual registration which remains valid for 90-180 days only. We will give you more details about this in another post.

Other Cases in which Indian GST registration is compulsory are:

  • Persons liable to pay tax under reverse charge mechanism;
  • A non-resident taxable person engaged in providing taxable supply;
  • A person liable to pay tax under section 9 (5) of the Act;
  • The person liable to deduct tax at source (TDS);
  • Input Service Distributor;
  • E-commerce operator;
  • A person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);
  • The person engaged in supplying online information and database access or retrieval services from a place outside India to an unregistered person;
  • Persons engaged in the taxable supply of goods or services or both on behalf of another registered taxable person, whether as an agent or otherwise.

We will be talking about these in detail in other blogs.

That is all about what is Indian GST registration and when it is required. Our mission is to make invoicing and GST easy for small businesses who stress during the accounting process and waste a lot of their hard-earned money in hiring professionals, yet don’t get 100% transparency and satisfaction. Now stop running to your professional for Invoicing and GST. Make it yourself in just few clicks with INVI GST billing Software for small business in India.

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