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When is Compulsory Registration under GST required?

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Sakshi Shah

Aggregate Turnover
E-Commerce Operator
E-Commerce Supplier
GST
GST Registration
GSTIN
Reverse Charge Mechanism
Last updated on April 26th, 2021

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

StateUp to 31/03/201901/02/2019 to 31/03/2019From 01/04/2019
Manipur, Mizoram, Nagaland, Tripura10 lacs10 lacs10 lacs
Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh10 lacs20 lacs20 lacs
Himachal Pradesh10 lacs20 lacs40 lacs
Jammu and Kashmir20 lacs20 lacs40 lacs
Puducherry, Telangana20 lacs20 lacs20 lacs
Other States20 lacs20 lacs40 lacs
StateUp to 31/03/201901/02/2019 to 31/03/2019From 01/04/2019
Manipur, Mizoram, Nagaland, Tripura10 lacs10 lacs10 lacs
Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh, Himachal Pradesh10 lacs20 lacs20 lacs
Other States20 lacs20 lacs20 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
StateUp to 31/03/201901/02/2019 to 31/03/2019From 01/04/2019
Manipur, Mizoram, Nagaland, Tripura10 lacs10 lacs10 lacs
Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh10 lacs20 lacs20 lacs
Himachal Pradesh10 lacs20 lacs40 lacs
Jammu and Kashmir20 lacs20 lacs40 lacs
Puducherry, Telangana20 lacs20 lacs20 lacs
Other States20 lacs20 lacs40 lacs
StateUp to 31/03/201901/02/2019 to 31/03/2019From 01/04/2019
Manipur, Mizoram, Nagaland, Tripura10 lacs10 lacs10 lacs
Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh, Himachal Pradesh10 lacs20 lacs20 lacs
Other States20 lacs20 lacs20 lacs

4. NRTP – Non-Resident Taxable Person

An NRTP must take a compulsory registration. It means a person:

5. CTP – Casual Taxable Person

A CTP must take a compulsory registration. It means a person:

6. ISD – Input Service Distributor

An ISD must take a compulsory registration. It means the head office:

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.

What is the impact of GST on a commission agent?
The value of service provided by a commission agent is taxable and not the amount of reimbursement claimed from principal. Know more about provisions of registration, returns, invoicing, rate etc applicable to a commission agent
Read Answer
What is the impact of GST on a commission agent?
The value of service provided by a commission agent is taxable and not the amount of reimbursement claimed from principal. Know more about provisions of registration, returns, invoicing, rate etc applicable to a commission agent
Read Answer

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:

10. RCM – Reverse Charge Mechanism

The buyer of goods or services is required to pay tax under provisions of the reverse charge mechanism.

FAQs

When is GST registration compulsory?

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.

Who is required to register under GST?

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

What is the GST Registration process?

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

Got Questions? Ask Away!

  1. Hey @HarshitShah

    GST Registration is the application for GST Number or GSTIN(GST Identification Number). Under the GST(Goods and Service Tax) Regime, it is mandatory for to have GSTIN to collect, pay GST and claim the Input Tax credit.

    For GST registration, the dealer has the following options:

    • Compulsory Registration: Under certain scenarios, the businesses have to get registration under GST

    When is Compulsory GST Registration needed?

    • Voluntary Registration: The business does not have the liability to register under GST, however, can apply for GST Registration. This usually is when the businesses are willing to take advantage of the Input Tax Credit facility

    • Registration under Composition Scheme: Composition scheme is a voluntary and optional scheme for registering under GST. Under the composition scheme, the compliance is simpler and lesser returns are to be filed. The tax is to be filed at a fixed rate. If the business turnover is in between INR 40 Lakhs and 1.5 Crores, they can opt for GST Registration under Composition Scheme

    • No Registration: In the case, when your business does not fall under the conditions for compulsory registration you do not require GST Registration

    Read more on GST Registration Types.

    Hope this helps!