GST Registration means the allotment of a unique GST Number or GSTIN to a taxpayer who is liable to collect and pay tax to the government after claiming the credit of the taxes paid on purchases. Generally, the GST registration is compulsory only if the Aggregate Turnover of a business exceeds the threshold limit during the financial year. However, in certain cases, compulsory registration under GST is required even if the turnover is less than the prescribed threshold limit. A taxpayer can apply for GST Registration on the GST Portal.
Who needs Compulsory Registration under GST?
1. Inter-state sale of Taxable Goods – Compulsory Registration
Inter-state supply means sales of goods outside the state of registration.
| Description | Whether GST Registration required? |
| Inter-state sale of taxable goods | Compulsory registration irrespective of turnover |
| Inter-state sale of taxable services, exempt goods or services, nil-rated goods or services, etc |
Compulsory registration only if the turnover exceeds the prescribed threshold limit for each state. Refer to the threshold limit for goods and services in the table below |
| State | Up to 31/03/2019 | 01/02/2019 to 31/03/2019 | From 01/04/2019 |
| Manipur, Mizoram, Nagaland, Tripura | 10 lacs | 10 lacs | 10 lacs |
| Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh | 10 lacs | 20 lacs | 20 lacs |
| Himachal Pradesh | 10 lacs | 20 lacs | 40 lacs |
| Jammu and Kashmir | 20 lacs | 20 lacs | 40 lacs |
| Puducherry, Telangana | 20 lacs | 20 lacs | 20 lacs |
| Other States | 20 lacs | 20 lacs | 40 lacs |
| State | Up to 31/03/2019 | 01/02/2019 to 31/03/2019 | From 01/04/2019 |
| Manipur, Mizoram, Nagaland, Tripura | 10 lacs | 10 lacs | 10 lacs |
| Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh, Himachal Pradesh | 10 lacs | 20 lacs | 20 lacs |
| Other States | 20 lacs | 20 lacs | 20 lacs |
2. E-Commerce Operators or TCS Collectors – Compulsory Registration
An e-commerce operator is a person who owns and manages a digital platform for an e-commerce business i.e. buy and sell goods or services over a digital network. The e-commerce operator is also called a TCS collector since he is liable to collect TCS (Tax Collected at Source) before making payments to the e-commerce suppliers. Thus, such persons should take a compulsory GST registration irrespective of the turnover.
3. E-Commerce Supplier of Goods – Compulsory Registration
An e-commerce supplier is a person who sells goods or services online through an e-commerce platform managed by an e-commerce operator.
| Description | Whether GST Registration required? |
| E-commerce supplier of goods | Compulsory registration irrespective of turnover |
| E-commerce supplier of services | Compulsory registration only if the turnover exceeds the prescribed threshold limit for each state. Refer to the threshold limit for goods and services in the table below |
| State | Up to 31/03/2019 | 01/02/2019 to 31/03/2019 | From 01/04/2019 |
| Manipur, Mizoram, Nagaland, Tripura | 10 lacs | 10 lacs | 10 lacs |
| Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh | 10 lacs | 20 lacs | 20 lacs |
| Himachal Pradesh | 10 lacs | 20 lacs | 40 lacs |
| Jammu and Kashmir | 20 lacs | 20 lacs | 40 lacs |
| Puducherry, Telangana | 20 lacs | 20 lacs | 20 lacs |
| Other States | 20 lacs | 20 lacs | 40 lacs |
| State | Up to 31/03/2019 | 01/02/2019 to 31/03/2019 | From 01/04/2019 |
| Manipur, Mizoram, Nagaland, Tripura | 10 lacs | 10 lacs | 10 lacs |
| Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh, Himachal Pradesh | 10 lacs | 20 lacs | 20 lacs |
| Other States | 20 lacs | 20 lacs | 20 lacs |
4. NRTP – Non-Resident Taxable Person
An NRTP must take a compulsory registration. It means a person:
- who is a non-resident in India,
- has no fixed place of business in India and
- sells goods or services in India as a principal or an agent.
5. CTP – Casual Taxable Person
A CTP must take a compulsory registration. It means a person:
- who sells goods or services in India as a principal or an agent,
- he has no fixed place of business in the state from which he sells goods or services.
6. ISD – Input Service Distributor
An ISD must take a compulsory registration. It means the head office:
- which receives tax invoices for input services used by all its branches,
- which issues tax invoices to its branches to distribute credit of tax paid on the input services.
7. Agent
An agent is a person who sells goods or services on behalf of another person i.e. principal. Further, it includes a commission agent, factor, broker etc. As per the GST Act, an agent must take compulsory registration under GST.
8. OIDAR Service Provider
OIDAR i.e. Online Information Database Access and Retrieval Services. When services are supplied online over the internet without a physical interface between the seller and buyer, compulsory registration must be taken by the seller.
9. TDS Deductor
TDS Deductor must take a compulsory registration under GST. A certain category of persons such as government department, local authority, government agency etc is required to deduct tax:
- At the rate of 2%,
- On making payment to the supplier of goods or services,
- If the invoice value exceeds Rs.2.5 lacs.
10. RCM – Reverse Charge Mechanism
The buyer of goods or services is required to pay tax under provisions of the reverse charge mechanism.
FAQs
The GST registration is compulsory only if the aggregate turnover of a business exceeds the prescribed threshold limit for sale of goods and services during the financial year. However, in certain cases, compulsory registration under GST is required even if the turnover is less than the prescribed threshold limit.
Following are the people required to register under GST:
1. Inter-state suppliers of Taxable Goods
2. E-Commerce Operators or TCS Collectors
3. E-Commerce Supplier of Goods
4. Non-Resident Taxable Person i.e. NRTP
5. Casual Taxable Person i.e. CTP
6. Input Service Distributor i.e. ISD
7. Agent
8. OIDAR Service Provider
9. TDS Deductor
10. RCM i.e. Reverse Charge Mechanism
Mentioned below is a brief process for GST Registration on the GST Portal:
1. Under New Registration on GST Portal, enter the basic details
2. You will see a GSTIN/ UIN / Provisional ID
3. Verify using OTP (One-time Password)
4. You will receive a TRN (Temporary Registration Number)
5. Verify the TRN by OTP Verification
6. Enter the relevant details and Upload the documents
7. Verify your application
8. Submit
