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Who all are liable to register under GST?

By Paras Mehra

( 51.3K Views) September 29, 2016

Introduction

GST is now a reality, and it is knocking the doors. This article answers the most important question which is in every bodies mind that who all are liable to register under GST?

There are uncountable types of business running, closing and starting on a daily basis. Everybody has questions about it, everybody has doubts, but there are few to answer.

We have tried to answer some of the categories of business, hope we get success to a larger extent. But before going forward, let us have a look at some of the important features:

GST talks about supply and not sales, hence transfer of goods like the stock transfer is also liable to GST.
Free supplier or services are also covered under GST. In other words, if you were running any scheme like buy1 gets one free, then you are liable to pay GST on free supply as well.
All existing dealers registered with due authorities will be granted provisional registration automatically.
All dealers getting provisional registration will have to apply for GST final registration within six months.
If you were exporting goods or services or dealing in non-taxable products, then also you need to apply for registration.

Let us proceed who all are liable to register for GST.

Who all are covered?

We have developed a basic test for GST registration. There are following factors which describe as who is liable for GST registration:

Every person if supplying goods or services more than 25 lakh (Rs.10 lakh for north east states including Sikkim).

If you are purchasing or selling goods outside the state irrespective of the limit mentioned in point 1.

If you are receiving or providing services outside the state irrespective of the limit mentioned in point 1.

If you are required to pay tax under reverse charge.

If you are non-resident taxable person irrespective of the limit mentioned in point 1

Input Service Distributor

An aggregator who supplier services under his brand name or his trade name irrespective of the limit mentioned in point 1.

Every electronic Commerce operator like Flipkart, Amazon, etc., irrespective of the limit mentioned in point 1

A person who supplies goods and services through electronic commerce. In other words, if you want to sell on Flipkart, Amazon, then you will need to register yourself first irrespective of the limit mentioned in point 1.

Any person who is required to deduct TDS under GST (not under Income Tax Act, 1961).

She are few example of who all are required to register under Goods and Service Tax (GST).

SNO.	PARTICULARS		REMARKS
EXISTING DEALERS
1.		Existing VAT/Sales tax dealers		Yes, a provisional registration certificate will be given, but it is required to convert it into final registration on submission of application along with docs.
2.		Existing Service Provider registered under Service tax		Yes, a provisional registration certificate will be given, but it is required to convert it into final registration on submission of application along with docs.
3.		Existing excise dealer/manufacturers registered under excise law		Yes, a provisional registration certificate will be given, but it is required to convert it into final registration on submission of application along with docs.
NEW BUSINESSES/STARTUPS/ENTREPRENEURS
4.		A new dealer willing to sell goods within a state and outside the state or want to manufacture and sell it.		Need registration under GST when total supply crosses 25 Lakhs(10 Lakhs for north-eastern states)
5.		New startups, blogger, tech startup willing to start a website to provide services		Need registration under GST when total supply crosses 25 Lakhs(10 Lakhs for north-eastern states)
6.		Any person working as a freelancer, casual worker, working from home		Need registration under GST when total supply crosses 25 Lakhs(10 Lakhs for north-eastern states)
7.		A New Startup registered under startup India scheme		Doesn’t matter whether registered with startup India or not, GST registration is mandatory.
MISCELLANEOUS CATEGORY
8.		100% Export Oriented Units (EOU)		Need registration under GST when total supply crosses 25 Lakhs(10 Lakhs for north-eastern states)
9.		Website builder, developers, content writers, bloggers doing work for little or no consideration		Need registration under GST when fair market value of total supply crosses 25 Lakhs(10 Lakhs for north-eastern states)

Conclusion

We have tried to explain you the concept behind the Goods and Service Tax (GST). However, there may be some doubts or problems, and then you may drop your queries at CONTACT FORM.