Online GST Registration

GST stands for Goods and Services Tax which is charged on the supply of goods or services or both in India. A business entity or a person liable to charge GST must first obtain GST Registration and get registered under GST Law. On successful registration, a unique 15-digit registration number is assigned to the business entity, known as the Goods and Services Tax Identification Number (GSTIN).

Without GST registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.

Some specific suppliers shall compulsorily obtain GST Registration, while it is optional and voluntary for other suppliers. The government has specified a business turnover limit for obtaining mandatory registration which varies from state to state.

Moreover, the registration under GST is PAN-based and State-specific which means a person has to register himself in each State or Union territory from where he does outward supply of goods.

Registration on Voluntary Basis

Any person or a business entity, who is not required to obtain GST registration compulsorily or whose turnover in a Financial Year does not cross the prescribed limit, may obtain GST Registration on a voluntary basis i.e., on his own wish by making an application to the GST Authority.

Registration on Mandatory Basis

These business entities have to compulsorily take registration, irrespective of their turnover in a financial year:

• A Business entity or a person supplying goods or services whose aggregate turnover crosses the limit specified under the GST Act (Given in the table below)
• A Business entity or person who is making Supply of Goods Inter-state wise (i.e., between 2 different states)
• All business entities or person who was registered under previous tax law (i.e., Excise, VAT, Service Tax, etc.) also have to obtain registration on a compulsory basis.
• Casual Taxable Person
• Non-resident taxable persons who are not having a fixed place of business in India
• Business Entity or Person paying tax under Reverse Charge Mechanism (RCM)
• Input service distributor
• Person supplying services through E-Commerce Operator (ECO)
• Supplier of Online Information and Database Access or Retrieval (OIDAR) services
• Persons who are liable to deduct tax at source (TDS Deductor)

Persons not required to obtain Registration

The following persons are not liable to obtain registration even if their aggregate turnover crosses the limit specified:

• A person who is supplying goods or services that are not liable to tax or wholly exempted from paying tax (Ex. Alcohol or Petrol or Diesel Supplier)
• An Agriculturist
• Any other person whom Government has given Exemption

The Business Turnover Limit for Compulsory Registration under GST is different for each state. Therefore, one has to check the turnover limit of the specific state under which he/she is trying to seek registration –

Aggregate Turnover includes the aggregate value of all taxable supplies, exempt supplies, exports of goods or services or both, and inter-State supplies of persons having the same PAN computed on an India basis but excludes the value of inward supplies on which tax is payable by a person on a reverse-charge basis, taxes such as central tax, State level tax, Union territory tax, Integrated tax, and charges.