GST applicability on various entities, including individuals, businesses, as well as organizations, is crucial in navigating the tax landscape.
In order to start a business, the person has to obtain GST registration. Once the business is successfully registered, he gets a unique registration number, also known as the Goods and Services Tax Identification Number (GSTIN). Having said that, this GSTIN is a 15-digit number assigned by the Central Government after the person has obtained the registration.
GST Applicability: Who has to obtain GST Registration?
As per the GST Act, following persons are liable to obtain GST registration:
- Supplier who involves in exclusive supply of goods. However, this is dependent on the State as well as turnover of the business. The classification of the same is as follows:
[wpdatatable id=257] - Persons who had registration under the erstwhile law, on the day immediately preceding the appointment date is liable to obtain GST registration.
- The registered taxable person when transfers business to another person on going concern basis. It is whether on account of succession or otherwise, in such case the transfer or the successor is liable to obtain GST registration.
- Transfer of company in case of amalgamation or de-merger in accordance with an order of a high court, tribunal or otherwise.
Compulsory GST Applicability
There are cases where the businesses threshold limit does not exceed the above said classification but, still the GST is applicable to them and has a need to obtain goods and services tax (GST) Registration. These cases are as follows:
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- Casual taxable person / Input Service Distributor (ISD)
- Non-resident taxable person
- Inter-state supplier of goods and services
- Supplier of goods through an e-commerce portal
- Any service provider
- Liable to pay tax under the reverse charge mechanism
- TDS/TCS deductor
- Agents and suppliers of Input Service Distributor
- Online data access or retrieval service provider
Casual Taxable Person:
Casual Taxable Person refers to an individual or business entity that occasionally undertakes transactions involving the supply of goods or services, but does not have a fixed place of business in the location where the transactions are taking place.
The registration for casual taxable persons is temporary and is valid for the period mentioned in the application or 90 days, whichever is earlier. However, there can be extension for an additional 90 days.
Non-Resident Taxable Persons
Non-Resident Taxable Person refers to an individual or business entity that does not have a fixed place of business in India but occasionally undertakes transactions involving the supply of goods or services.
Similar to casual taxable persons, non-resident taxable persons are required to register under Goods and services tax in India before commencing any business activities. The registration is temporary and is valid for the period mentioned in the application or 90 days, whichever is earlier. And, here also there can be extension for an additional 90 days.
Inter-State Supplier of Goods and Services
Inter-State Supplier refers to a person or business entity that supplies goods or services from one state or union territory to another.
Further, the GST is applicable on these supplies and has to apply for GST Registration irrespective of their turnover.
Any Service Provider
GST applies to the supply of services, as well as on service providers. Having said that, GST is applicable on all the services provided by the businesses as well as professionals.
Liable to pay under the Reverse Charge Mechanism
RCM, or Reverse Charge Mechanism, is a concept in the Goods and Services Tax (GST) framework where the liability to supplier pays in place of the recipient of the goods or services.
Agents and Suppliers of Input Service Distributors
An Input Service Distributor is an office of a supplier of goods or services that receives tax invoices for the receipt of input services and distributes the credit of Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), or Integrated Goods and Services Tax (IGST) paid on those services to its branches or units.
Having said that, these distributor have to mandatorily apply for GST Registration.
TDS/TCS Deductor or Collector
GST is applicable on the entities that deduct TDS (eg. government) as well as collect TCS (eg. e-commerce).
Online data access or retrieval service provider
OIDAR services refer to services that are provided through the internet and such services are subject to GST.
FAQs
Yes, if you have business in more than one state then, you will have to take separate GSTIN for each State in which you have your businesses.
– Permanent Account Number (PAN) of the applicant
– Copy of the aadhaar card
– Proof of business registration or incorporation certificate
– Identity and address proof of promoters/directors with a photograph
– Bank account statement/cancelled cheque
– Authorisation letter/board resolution for authorised signatory
– Digital signature
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