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
- 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
- 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.
- 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.
- 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.
The following are the special category states under GST to which the threshold limit for registration is lesser.
1. Arunachal Pradesh
3. Jammu & Kashmir
10. Himachal Pradesh
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
Aggregate turnover excludes:
1. Value of tax on sales
2. Value of purchases on which tax is paid under RCM (reverse charge mechanism)
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.
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.