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GST Registration Types

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Sakshi Shah

Aggregate Turnover
Composition Scheme
GST Registration
GSTIN
Last updated on April 26th, 2021

GST Registration means applying for a unique GST Number or GSTIN i.e. GST Identification Number on the GST Portal. The taxpayer requires GSTIN to collect and pay GST on the outward supplies i.e. sales and claim GST input tax credit on the inward supplies i.e. purchases. Types of GST Registration depends on the nature of the business.

Types of GST Registration

  1. Compulsory Registration
    Under certain situations, the dealer must take Compulsory Registration under GST irrespective of the turnover. For eg: inter-state sales of taxable goods, e-commerce operator, e-commerce seller, etc
  2. Voluntary Registration
    A business that does not need to apply for compulsory registration can apply for registration on a voluntary basis. It is called Voluntary Registration under GST.
  3. Registration under Composition Scheme
    If the aggregate turnover exceeds the prescribed 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 the Composition Scheme. Under this scheme, the taxpayer should pay GST at a fixed rate on turnover and the compliance is lesser than in case of normal registration.
  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.
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FAQs

What are the special category states under GST?

The following are the special category states under GST to which the threshold limit for registration is lesser.
1. Arunachal Pradesh
2. Assam
3. Jammu & Kashmir
4. Manipur
5. Meghalaya
6. Mizoram
7. Nagaland
8. Sikkim
9. Tripura
10. Himachal Pradesh
11. Uttarakhand

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:
1. Taxable sales
2. Exempt sales
3. Exports
Aggregate turnover excludes:
1. Value of tax on sales
2. Value of purchases on which tax is paid under RCM (reverse charge mechanism)

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

Yes. It is possible in the 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.

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.

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!

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