Eligibility for GST Registration

GST enrollment

Goods and Services Tax (GST), the centralised tax we’d been awaiting for nearly a decade, is finally here. Being such a sweeping reform, as it combines nine existing taxes into one, much is not clear to businesses (of all types, from manufacturing and services to import-export and trading) small and large. So let’s start with a very basic one: do you need to register yourself?

Eligibility for GST Registration

1. Within GST, you will not be collecting tax on sales, but on supply. Therefore, stock transfer, freebies and even discounts will attract GST. If your current combined supply is over Rs. 25 lakh, you are eligible for GST Registration (if your business operates exclusively in the North Eastern states, Rs. 10 lakh).
2. If you already have a VAT Registration, Service Tax Registration or are registered under any of the laws that are to be subsumed by GST, you will be granted provisional registration. Once you are granted a provisional registration, you must apply for GST Registration within six months.
3. If you are supplying non-taxable products or are in the export business, you need to apply for GST Registration. This will even apply to those in the software business, the export of which was previously untaxed.
4. If you are supplying goods or services to another state, you need to apply for GST regardless of turnover.

Do You Need To Get Registered?

1. Do you supply goods/services of over Rs. 25 lakh (Rs. 10 lakh in case of North Eastern states, including Sikkim)?
2. Are you required to pay tax under reverse charge?
3. Are you purchasing or supplying any goods or services outside of the borders of your home state? (The Rs. 25 lakh limit will not apply).
4. Are you planning on selling on an e-commerce websites such as Flipkart, Amazon, Snapdeal or PayTM? (The Rs. 25 lakh limit will not apply).
5. Are you an input service distributor?
6. Are you an aggregator of goods or services, which are ultimately sole under your brand name? (The Rs. 25 lakh limit will not apply).
7. Are you an ecommerce website? (The Rs. 25 lakh limit will not apply?)
8. Are you required to deduct TDS under GST?

What is Required of Your Business?

Existing VAT/Service Tax/Excise Dealers: Provisional Registration will be granted and final enrollment should be completed within six months of receiving provisional ID.

New businesses: All businesses must apply for GST as soon as their supplies cross an aggregate value of Rs. 25 lakh (Rs. 10 lakh in North Eastern States). The same goes for freelancers, export oriented units, etc.

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