5 cases where GST registration is mandatory

 

Introduction

Do you know that you need a GST registration if you want to sell either online or outside your state? Yes, there are many cases where GST registration becomes mandatory even if the total turnover is less than Rs.20 lakh (or Rs.10 lakh as the case may be).

Therefore, it is very important to know the cases where GST registration is mandatory so that you don’t end up trouble with the authorities. Let us understand the respective cases where GST registration is mandatory.

General Rule for GST Registration

A taxable person carries a business in India of supplying goods or services with a turnover exceeding 20 lakhs are liable to register under GST. Further, there are few cases where registration under GST is mandatory even if the turnover is less than Rs.20 lakh.

1. Selling goods outside the state

If you sell any goods outside the state, then the GST registration is mandatory. However, this condition now does not apply in cases of services. In other words, if you sell services outside the state then also GST registration is not mandatory until Rs.20 lakh turnover is crossed.

2. Selling on Amazon or Flipkart

There are a lot of people in India who prefer to sell goods online through e-commerce platform. This helps them to cater more sales at a lesser investment. However, if you want to sell on Amazon or Flipkart, then GST registration is mandatory even if you have zero revenue.

3. Casual Taxable Person   

A casual taxable person simply means a person who occasionally supplies goods or service in a state where GST is applicable but he does not have a fixed place of business. Such person will be treated as a casual taxable person.

For example: Traders from across the country comes to Delhi to sell goods at the time of International Trade Fair. Since these traders do not have any fixed place of business in Delhi, they are known as Casual Taxable Person.

Read: GST registration for Casual Taxable Person

4. Dealing in exempted goods and taxable goods

If you are a supplier dealing in exempted goods and taxable goods both and your total turnover is more than 20 lakhs, then GST registration becomes mandatory irrespective of the fact that turnover consists of exempted goods.

5. Non – resident taxable person Supplier

Every non-resident taxable supplier who occasionally supplies goods or services or both but apparently has no fixed place of business in India, that nonresident taxable Supplier will require GST registration in India.

In case of non – resident taxable person, the registration may be granted on the basis of the valid passport.

Read: GST registration for Non – residents, and Importers

 

Conclusion

In case you need any help with the GST registration, please email us at info@hubco.in.