Goods and Services Tax (GST) was introduced on July 1, 2017, is a type of indirect tax. It is charged on supply of the goods and services all over the country. GST has incorporated the primary concept of " One Nation One Tax". 

Businesses with exceeding the turnover of Rs. 40 lakhs (Rs. 10 lakhs for the North Eastern and hill states) must have GST registration as a normal taxable person. 

For some businesses GST registration in India is mandatory. You can get GST registration from the GST portal. If any business functions without registering under GST, it will be an offence under the GST Act. The person will be charged with heavy penalties.

Who Needs to Have GST Registration or GSTIN?

Businesses that need to get GST registration or GSTIN is given below:

• Individuals who were registered under the pre-GST law like VAT, Excise, Service Tax etc.
• Businesses with a turnover above the specified threshold limit of Rs. 40 lakhs (Rs. 10 lakhs for North -Eastern States, Uttarakhand, Himachal Pradesh and Jammu & Kashmir).
• Non-Resident taxable person.
• Casual taxable person
• Input service distributor and the Agents of the supplier.
• Taxpaying businesses or individuals under the Reverse Charge Mechanism.
• Individuals supplying through an e-commerce aggregator.
• All the e-commerce aggregator.
• Individuals supplying online information and retrieval services and database access from a place outside India to any person in India, other than a registered taxable person.

Benefits of GST Registration

The benefits of GST Registration in India are as follows:

• The business is recognized legally as a supplier of goods or services.
• Proper accounting of the taxes paid on the input of goods or services that can be utilized for payment of GST that is due to the supply of goods or services by the taxpayers.
• The taxpayers can avail themselves various other benefits as well as a privilege under the GST laws.
• The tax rates are less under the composition scheme.
• It gave relief from the double taxation system.
• Improved logistics system by way of E-way Bill.

Types of GST Registration in India

• Average Taxpayer
• Compulsory or Mandatory Registration
• Voluntary Registration
• Composition Registration
• Registration not Required

The different types of GST registration in India are explained below:

• Average Taxpayer

For filing GST under this category there is no limit for the deposits. Most of the businesses in India fall under this classification.

• Compulsory or Mandatory Registration

Compulsory registration is essential only under certain circumstances. Some of the instances where compulsory registration is needed are inter-state sales of goods that are taxable or for e-commerce operator and seller.

• Voluntary Registration

If a business does not wish to apply for compulsory registration can apply for voluntary registration. 

• Composition Registration

GST registration process relieves the composition registration from all the hassles. The businesses here need to fix all the deposits irrespective of their actual earnings. 

• Registration not Required

GST registration in India is not required under the following circumstances:

• If The aggregate turnover during any financial year does not exceed Rs. 40 lakhs for goods and Rs. 20 lakh for the services.
• If the business category does not fall under the compulsory registration category.
• Exempted goods and services under the GST registration.
• Supply of agricultural goods.

In a Nutshell

In a nutshell, it is up to the business type, category and turnover that decides the type of GST registration that is needed for the business. Some businesses must complete all the registration process specified in the GST portal. You will need to provide the GSTIN while filing GST returns or claiming the income tax credit.

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