GST registration in India

Get GST Registration in India: Know its applicability, process, and why it's essential. RAAAS offers expert assistance and benefits of GST Registration.

GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services in India. GST was implemented in India on July 1, 2017, replacing multiple indirect taxes levied by the central and state governments, such as excise duty, service tax, value-added tax (VAT), and others.

The objective of GST is to create a unified and simplified tax system that reduces complexities, eliminates cascading effects, promotes ease of doing business, and fosters a common market across India. It is based on the principle of "One Nation, One Tax."

Applicability of GST Registration  in India 

 

The Goods and Services Tax (GST) registration is applicable in India under the following circumstances: -

Mandatory Registration: GST registration is mandatory for businesses that meet any of the following criteria:

Aggregate turnover: If your aggregate turnover (including taxable, exempt, and export supplies) in a financial year exceeds the threshold limit, GST registration is mandatory. The threshold limit is Rs.20 lakhs for most states in India (Rs.10 lakhs for special category states).

Inter-state supply: If you are engaged in the supply of goods or services between different states, GST registration is mandatory, regardless of the turnover.

E-commerce operators: Online platforms or e-commerce operators that facilitate the supply of goods or services must obtain GST registration, regardless of their turnover.

Input Service Distributor (ISD): If you are an ISD, responsible for distributing input tax credit among your branches or units, GST registration is mandatory.

Casual taxable person: If you are involved in occasional or seasonal business activities and do not have a fixed place of business, GST registration is mandatory, regardless of the turnover.

Voluntary Registration: Even if your turnover does not exceed the mandatory threshold, you have the option to voluntarily register for GST. Voluntary registration can provide certain benefits, such as availing input tax credit, participating in inter-state transactions, and gaining credibility with suppliers and customers.

Reverse Charge Mechanism (RCM): If you are liable to pay tax under the reverse charge mechanism, which occurs when the recipient is required to pay the tax instead of the supplier, GST registration is mandatory, regardless of the turnover.

Input Tax Credit (ITC): To claim input tax credit on purchases, you need to be a registered taxpayer and possess a valid GST registration.