Registration in GST: all you need to know

The requirement of registration in GST-

There can be various instances to generate the liability to take registration in GST. Turnover is one of the criteria. In some cases, registration may be mandatory even without any outward supply. Let us elaborate on all these scenarios.

Registration when a person crosses the threshold limit.

A person is required to take registration in GST on crossing the threshold. There are the different limits for various taxpayers.

Supplier of Goods- The threshold limit is Rs. 40lac in some states. (See the list here). In other states, it is 20 lac and 10lac.

Supplier of services- The threshold limit for a supplier of services or both is Rs. 20 lac. In notified states its.10lac. (See statewide threshold list here)

Mandatory registration on making inter state supply of Goods

When a taxpayer is making an inter-state supply of Goods. GST registration is mandatory even if the turnover is less than prescribed. Earlier this provision was for all taxpayers. But service providers were removed from this clause.

Registration on making the purchase of supplies covered in RCM

Reverse charge purchase is also a criterion for registration in GST. You can see the list of items covered in reverse charge here. A classic example can be the case where the taxpayer is selling the exempted Goods but using the services of GTA, liable for RCM. In this case, he may be liable for registration to pay tax in RCM. Some advance rulings are also there to support this stand.

Registration of ISD

An ISD is also required to take registration. In GST an ISD comes to life only when they take registration as an ISD. An ISD is an entity procuring the supplies for other branches. They are allowed to pass on the ITC of their purchases.

Registration of casual taxable person

A casual taxable person is a person who is not registered in a state. But occasionally try to make supply from that state. They are liable for registration. But this registration is only for a limited period. Also, they are liable to pay the tax in advance for the expected supply.

Registration of NRTP

NRTP stands for a non-resident taxable person. A person located outside India but make supply from India. They don’t have a place of business in India.

Registration of person providing the OIDAR services to a non-taxable person in India

A person providing OIDAR services is also required to take registration in India. It is without any threshold limit.

OIDAR is defined in section 2(17) of IGST Act as-

2(17) “online information and database access or retrieval services” means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention and impossible to ensure in the absence of information technology and includes electronic services such as,––

(i) advertising on the internet;

(ii) providing cloud services;

(iii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or the internet;

(iv) providing data or information, retrievable or otherwise, to any person in electronic form through a computer network;

(v) online supplies of digital content (movies, television shows, music and the like);

(vi) digital data storage; and

(vii) online gaming;