Who Needs GST Registration?
All those small and large business companies and service firms which were required to pay various indirect taxes to the State and Central governments, are now need to get registration under GST, particularly when their respective annual turnover exceeds Rs 2 million (for northeastern States and other Special Category States, this threshold is Rs. One million).
This is briefest answer to the common question "who needs gst registration?", after promulgation of the GST Act in India since July 01, 2017. Now, this and the section below, give more information and elucidation on this topic, to help Indian and foreign entities doing business and providing services in entire India.
All people and economic entities dealing in their respective product(s) or service(s) at State or national level, are compulsorily required to obtain timely registration under GST, particularly whenever their respective annual turnover crosses Rs. 20 Lakh (or Rs. 2 million). They may be manufacturers, suppliers, wholesalers or retailors, importers or exporters, and so on. Here, it must be noted that the Inter-State trades essentially require GST registration, regardless of the turnover threshold mentioned above. After proper and perfect registration with the GST Common Portal (https://www.gst.gov.in ), every applicant will be given a unique GSTIN, serving as his/her identity to the tax authorities of India. This GSTIN (Goods and Services Taxpayer Identification Number) is a State-wise, PAN-based, 15-digit unique number. Here, it may be just mentioned that GST is a single tax which is collected at multiple stages during the entire supply chain, from the concerned customer/consumer. This single tax has subsumed and replaced all various indirect taxes which were in vogue prior to this GST Act, and remitted to the relevant State and Central governments. The main objectives of GST are building a unified tax structure across country, elimination of the cascading effects of various indirect taxes, preventing red-tape and corruption, creating transparency, establishment of a better and easier taxation regime in India, and nurturing further growth of revenues and GDP.
Who is not Required to Obtain GST Registration?
However, certain people and organizations located in India are exempted from obtaining mandatory registration under GST. Each of them is given a Unique Identification Number (UID) in lieu of GSTIN, for distinction. This answers the question "who is not required to obtain gst registration?", for carrying on any service/business in India. The following are such people and entities/organizations:
- Any Specialized Agency of the UNO (United Nations Organization), or any Multilateral Financial Institution/Organization notified under the United Nations Act of 1947.
- Embassies and Consulates of Foreign Countries in India
- Any Specific Person/Entity made exempt from GST registration by any State government or Central government, or any competent Board/Commissioner, based on certain recommendations of the GST Council.