DETAILED GUIDE ON GST ELIGIBILITY CRITERIA
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The Goods and Services Tax (GST) is a unified tax system that applies to businesses across India. Understanding who needs to register under GST is crucial for compliance. Below is a detailed guide on the eligibility criteria for GST registration.
1. Individuals Registered Under Pre-GST Laws
If you were registered under earlier tax regimes such as Excise, VAT, or Service Tax, you are required to obtain GST registration.
2. Businesses with Turnover Above Threshold Limits
- Rs. 40 Lakh: For most goods and services suppliers.
- Rs. 20 Lakh: For special category states (e.g., North-Eastern states).
- Rs. 10 Lakh: For specific businesses like e-commerce operators.
3. Persons Making Interstate Supplies
Any business involved in interstate trade or commerce must register under GST, irrespective of turnover.
4. Casual Taxable Person / Non-Resident Taxable Person
Casual taxable persons or non-residents supplying goods/services in India must register under GST.
5. Agents and Input Service Distributors
Agents of suppliers and input service distributors are required to register under GST.
6. Reverse Charge Mechanism
Businesses paying tax under the reverse charge mechanism must also register under GST.
7. E-Commerce Aggregators
E-commerce aggregators and persons supplying via e-commerce platforms (except those under CGST Section 9(5)) need GST registration.
8. Government Departments and TDS Deductors
Government departments required to deduct TDS under CGST Section 51 must register under GST.
9. Online Information and Database Access Providers
Persons providing online information or database access services from outside India to unregistered individuals in India must register under GST.
10. Online Money Gaming Operators
Operators of online money gaming services from outside India to individuals in India are required to register under GST.
Why Is GST Registration Important?
GST registration ensures legal recognition of your business and enables you to claim Input Tax Credit (ITC). It also helps avoid penalties for non-compliance.
Frequently Asked Questions (FAQs)
What is the threshold limit for GST registration?
The threshold limit for GST registration is Rs. 40 lakh for most businesses, Rs. 20 lakh for special category states, and Rs. 10 lakh for certain e-commerce operators.
Do I need GST registration for interstate sales?
Yes, all businesses involved in interstate supplies must register under GST, regardless of turnover.
Is GST registration mandatory for e-commerce sellers?
Yes, all sellers on e-commerce platforms must register under GST, except for those covered under CGST Section 9(5).
Can I cancel my GST registration?
Yes, you can apply for GST cancellation if your business ceases operations or your turnover falls below the threshold limit.
