GST is the biggest tax reform in India which has tremendously improved the ease of doing business and increasing the taxpayer base in India by including millions of small businesses. The GST law mandates that all persons involved in supply of goods or services or both are required take registration. Registration is mandatory once the person cross a minimum threshold turnover or is expected to cross the prescribed turnover (in case of a new business). 

Registration of any person under the GST law implies obtaining a unique number known as Goods and Service Tax Identification Number (GSTIN) from the concerned tax authorities for the purpose of the collecting tax on behalf of the Government.Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.

CRITERIA FOR ELIGIBILTY TO REGISTER UNDER GST

1. Aggregate turnover:The liability to register under GST arises when the aggregate turnover in the financial year exceeds the specified limit in the following cases:

• In case of supply of goods: INR40 lakhs (in special category States this limit is INR 20 lakhs).

• In case of supply of Services: INR20 lakhs (in special category States this limit is INR 10 lakhs).

COMPULSORY REGISTRATION

In the following cases, GST registration is compulsorily irrespective of turnover:

• Inter-state supply: Every person shall register under GST law if they make inter-state supply of goods;

• casual taxable persons making taxable supply: Any person undertaking supply of goods or services or both seasonally or intermittently through a temporary stall or shop must register under GST;

• Persons who are required to pay tax under reverse charge;

• Non-resident taxable persons making taxable supply;

• Persons who are required to deduct tax under Section 51;

• Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

• Input Service Distributor;

• Persons who undertake supplies through electronic commerce operator;

• Every electronic commerce operator;

• 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

• such other person or class of persons as may be notified by the Government on the recommendations of the Council.