1. What are the situations where GST
registration is mandatory ?
-
As per Section 22 of CGST Act, 2017:
If the aggregate turnover in a financial year exceeds
Rs. 20 lakhs ( It is Rs. 10 lakhs for special category states).
- As per Section 24 of CGST Act, 2017: It is
compulsory requirement to be registered in the following cases:-
a)
persons making any inter-State taxable supply;
b)
casual taxable persons making taxable supply;
c)
persons who are required to pay tax under
reverse charge;
d)
person who are required to pay tax under
sub-section (5) of section 9;
e)
non-resident taxable persons making taxable
supply;
f) persons who are required to deduct tax under
section 51, whether or not separately registered under the CGST Act, 2017;
g) persons who make taxable supply of goods or
services or both on behalf of other taxable persons whether as an agent or
otherwise;
h) Input Service Distributor, whether or not
separately registered.
i) persons who supply goods or services or both,
other than supplies specified under sub-section(5) of section 9, through such
electronic commerce operator who is required to collect tax at source under
section 52 of CGST Act, 2017;
j) every electronic commerce operator;
k) every person supplying online information and
database access or retrieval services from a place outside India to a person in
India, other than a registered person; and
l) such other person or class of persons as may be
notified by the Government on the recommendations of the Council.
2. Is
turnover limit increased to Rs. 40 lakhs for the case where GST registration is
required on the basis of aggregate turnover ?
-
Partly Yes and Partly No.
o
As per the Notification No. 10/2019-Central Tax
dated 07th March 2019, with effect from 01st April 2019 ,
it is increased to Rs. 40 lakhs for the persons who are engaged exclusively in
supply of goods i.e., traders and who are not engaged in intra-state supplies
in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland,
Puducherry, Sikkim, Telangana, Tripura, Uttarakhand;
o
So, this threshold limit of Rs. 40 lakhs is not
applicable to Service providers.
3. Is
it mandatory to register under the GST for the persons who are involved in
interstate supplies even if the aggregate turnover does not exceed Rs. 20 lakhs
/ 10 lakhs (as the case may be) ?
-
Partly Yes and Partly No
o
As per Section 24 of CGST Act, 2017, it is one
of the cases where compulsory GST registration is required irrespective of the aggregate
turnover.
o
However, Notification No. 10/2017 of Integrated Tax exempts the service providers who are engaged in interstate supply of services from
registration if their aggregate turnover in a financial year does not exceed
Rs. 20 lakhs (Rs. 10 lakhs in case of special category states).
o Hence, traders making interstate sales have to get registration even if their aggregate turnover does not exceed the specified threshold limit.
o However, Notification No. 8/2017 of Integrated Tax exempts the persons making inter-State taxable supplies of handicraft goods from registration if their aggregate turnover in a financial year does not exceed Rs. 20 lakhs (Rs. 10 lakhs in case of special category states).
4. Who
are exempted from GST registration ?
a) Person engaged exclusively in the business of
supplying goods or services or both that are not liable to tax or wholly exempt
from tax under this Act or under the Integrated Goods and Services Tax Act.
b) An agriculturist, to the extent of supply of
produce out of cultivation of land.
c) Persons whose aggregate turnover in a financial
year does not exceed the threshold limits as discussed above except in the cases
where registration is mandatory.
d) Persons making supplies of services, other than supplies specified under Sec 9(5), through an electronic commerce operator who is
required to collect tax at source under Sec 52 of the CGST Act, and having an aggregate
turnover, not exceeding an amount of Rs. 20 lakhs (Rs. 10 lakhs in case of special category states) in
a financial year. (Notification No. 65/2017 – Central Tax).
e) Persons who are only engaged in making
supplies of taxable goods or services or both, which are liable for reverse charge under Sec 9(3) of the CGST Act 2017. (Notification No.5/2017 – Central Tax).
Definitions:
1) Aggregate Turnover means the aggregate value of all taxable supplies
(excluding the value of inward supplies on which tax is payable by a person on reverse
charge basis), exempt supplies, exports of goods or services or both and inter-State supplies
of persons having the same Permanent Account Number, to be computed on all India basis
but excludes central tax, State tax, Union territory tax, integrated tax and cess;
2) Special Category States shall mean the States as specified
in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of
Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh,
Meghalaya, Sikkim and Uttarakhand. (clause (iii) of Explanation to the Sec.22 of the CGST Act 2017).
Link : The CGST Act, 2017 (as on 01st January 2022).
Link : CGST Rules, 2017 (as on 01st January 2022).
image credit: https://depositphotos.com/
No comments:
Post a Comment