Mandatory GST Registration

There are some criteria for mandatory Registration. Following is the list of criteria for the registration:

  • Mandatory registration is compulsory for the inter-state supply of goods.
  • The annual turnover of the supply of goods within the same state is more than Rs. 40 lakhs except for Manipur, Mizoram, Nagaland, Sikkim, Tripura, Arunachal Pradesh, Meghalaya, Pondicherry, Telangana, and Uttarakhand where the turnover of the supply of goods is Rs. 20 lakhs.
  • A person involved in the supply of services has to get registered under GST if the turnover is more than Rs. Lakhs except for Manipur, Mizoram, Nagaland, Sikkim, Tripura, Arunachal Pradesh, Meghalaya, Pondicherry, Telangana, and Uttarakhand.
  • A person involved in the supply of goods and services in Manipur, Mizoram, Nagaland, Sikkim, Tripura, Arunachal Pradesh, Meghalaya, Pondicherry, Telangana, and Uttarakhand has to register if the turnover is more than Rs. 20 lakhs in case of goods and Rs. 10 lakhs in case of services.
  • An e-commerce operator must get registered under GST who provides to buy and sell goods and services even if the turnover does not attract the specified limit.
  • It is also mandatory for input service distributor to get registered.
  • In case the supplier is a non-resident taxable person, such type of person has to register.
  • Registration is necessary for a person who is required to pay tax under the Reverse Charge Mechanism.
  • Registration under GST is also compulsory for a person who is deducting TCS or TDS in GST.
  • If any person who is providing online information in India from outside of India has to get registered.
  • Any other person notified by the government.

Benefits of Mandatory GST Registration:

  • Mandatory registration under GST helps to eliminate the cascading effect of the tax.
  • Small businesses can avail benefits of GST as it gives an option to lower taxes by the composition scheme.
  • Compliances are less.
  • Improved the efficiency of logistics.
  • The unorganized sector is regulated under GST.