All You Need to Know About GST registration

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CA Shweta Mittal
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GST or Goods and Services Tax is a comprehensive, multi-stage, destination-based tax that came into effect in India on the 1st of July 2017. In simple words, Goods & Service Tax (GST) is an indirect tax that is levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the entire country.

Any person or entity providing a taxable supply of goods or services to persons in India with an annual aggregate turnover of more than INR 20 lakhs is required to obtain GST registration. In some special category states like Assam, Nagaland, Manipur and others, the aggregate turnover criteria have been reduced to INR 10 lakhs. Other than the aggregate turnover criteria, a person could be required to obtain GST registration in the following cases:

The GST Registration can be obtained by any person voluntarily

Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too.

If registered in any previous tax regime which got submerged in GST

The following Central Taxes will no longer be calculated separately, and will instead be computed using GST laws:

  1. Central Excise Duty
  2. Additional Excise Duties
  3. The Excise Duty levied under the Medicinal and Toiletries Preparation Act
  4. Service Tax
  5. Additional Customs Duty, commonly known as Countervailing Duty (CVD)
  6. Special Additional Duty of Customs – 4% (SAD)
  7. Surcharges
  8. Cesses

Several State taxes will also be included in GST:

  1. VAT / Sales tax
  2. Entertainment tax (unless it is levied by the local bodies).
  3. Luxury tax
  4. Taxes on lottery, betting and gambling.
  5. State Cesses and Surcharges insofar as they relate to the supply of goods and services.
  6. Entry tax

In case of transfer of business, the transferee has to obtain a new GST Registration

When a business which is registered has been transferred to someone/demerged, the transferee shall take GST registration with effect from the date of transfer.

Persons making an inter-state supply of Goods or Services

Inter-state supplies of up to INR 20 lakhs are allowed without GST registration. A person can purchase the goods on payment of GST, export the goods either without payment of IGST under a letter of undertaking or on payment of IGST under a claim of refund.