Voluntary & Compulsory GST Registration – Things to know

Every supplier who makes supply of taxable goods and services or both needs to take registration under GST if his aggregate turnover in a financial year exceeds the threshold limit. The Threshold limit for taking registration are as follows:

In case of supplier of services – Rs. 20, 00,000 (Rs. 10, 00,000 for states of Manipur, Mizoram, Nagaland, and Tripura)

In case of Supplier of Goods – Rs. 40,00,000 (Rs. 20,00,000 in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand) w.e.f. 01.04.2019

More Interpretation

• If supplier involved in Intra-state taxable supply of goods and his aggregate turnover in a financial year does not exceed prescribed amount of threshold exemption limit i.e. Rs. 40,00,000 (20,00,000 in case of certain states), then not required to take registration under GST.
• If Supplier involved in Intra-State taxable supply of Services and aggregate turnover in a financial year does not exceed prescribed amount of threshold exemption limit i.e. Rs. 20, 00,000 (10,00,000 in case of certain states), then not required to take registration under GST.
• If Supplier involved in Inter-State supply of Services only (not goods) and his aggregate turnover in a financial year does not exceed prescribed amount of threshold exemption limit i.e. Rs. 20,00,000 (Rs. 10,00,000 in case of certain states), then not required to take registration under GST.

Voluntary Registration

Persons having turnover below 40 Lakh and 20 Lakh can also get themselves registered under GST, there is no restriction on registration when turnover is below 40, 00,000 and 20, 00,000 however, if turnover is more then specified limit then registration is compulsory.

Turnover includes:

Aggregate value of all taxable supplies + exempt supplies + export of goods or services or both + inter-state supplies + It includes supplies made by person on behalf of the his principals (excludes the value of job-worked goods if he is a job-worker)

Aggregate Turnover to be computed by considering all the persons having the same PAN number based on all India.

Persons not liable for Registration

• Person engaged in the business of supplying of only non-taxable goods or services under GST Acts.
• Agriculturist, to the extent of supply of produce out of cultivation of land and
• Persons only engaged in making taxable supplies of goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods.

Compulsory Registration

 GST Act provides compulsory registration of certain suppliers even if their aggregate turnover is below the threshold limit:

• Person making inter-state taxable supply of goods
• Casual taxable persons making taxable supply
• Persons who are required to pay tax under reverse charge
• Person making taxable supply on behalf of another person whether as an agent or otherwise;