GST Registration Types

Author
By Sakshi Shah on March 27, 2019

GST Registration means applying for a unique GST Number or GSTIN i.e. GST Identification Number. GSTIN is required to collect and pay GST to the government on the outward supplies i.e. sales and claim GST input tax credit on the inward supplies i.e. purchases.

For GST Registration the dealer has the following options:

1. Compulsory Registration
Under certain situations, the dealer must compulsorily register under GST irrespective of the turnover.

When is compulsory registration under GST required?

2. Voluntary Registration
A business that is not required to get compulsory registration can apply for registration on a voluntary basis.

What is Voluntary Registration under GST?

3. Registration under Composition Scheme
If the aggregate turnover exceeds the threshold limit of Rs.40 lacs (Rs.20 lacs for special category states) for goods or Rs.20 lacs (Rs.10 lacs for special category states) but is less than Rs.1.5 Cr (Rs.75 lacs for special category states), the dealer can register under composition scheme. In case of services, if the aggregate turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states) but it is less than Rs.50 lacs, the dealer can register under composition scheme. Under this scheme, the tax is to be paid at a fixed rate on turnover and the compliance under GST is lesser than in case of normal registration.

Should I register under the Composition Scheme in GST?

4. No Registration
The following category of persons do not require GST registration:

  • The business for which aggregate turnover during the financial year does not exceed Rs.40 lacs for goods (Rs.20 lacs for special category states) or Rs.20 lacs for services (Rs.10 lacs for special category states).
  • The business that does not fall under the provisions of compulsory registration.
  • Persons selling goods or services that are exempt under GST or not covered under GST.
  • Agriculturists for the supply of crops produced from the cultivation of land.
What should I do if my business turnover is less than 20 lakhs, for the GST? You can apply for registration if you wish to claim the credit of taxes paid on purchases.
Is 2 GST registration possible on one PAN card? There can be more than one registration on the same PAN if you have branches in multiple states.

FAQs

1. What are the special category states under GST?

The threshold limit for registration under GST is Rs.10 lacs in case of special category states. The special category states are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand

2. What is Aggregate Turnover under GST?

Aggregate Turnover means the total value of sales made by a business registered under the same PAN. Sales include the aggregate of the following:

  • Taxable sales
  • Exempt sales
  • Exports

Aggregate turnover excludes:

  • Value of tax on sales
  • Value of purchases on which tax is paid under RCM (reverse charge mechanism)

3. Can I have more than one GST registration on a single PAN?

Yes. It is possible in case of multiple business verticals within the same state. A person having different categories of business may obtain multiple registrations with the same PAN within a single State. Further, these will be treated as separate taxable persons for all purposes of GST.

4. What is the fee for a GST Registration?

There is no fee charged by the government for GST registration. However, a professional fee may be charged if services of a GST Practitioner or a Chartered Accountant are used.