Model GST law provides for registration of various persons in different situations. This article aims at enlightening readers about the persons who are required to take registration and other provisions related to registration.
2. Threshold Limit
In order to provide relaxation to small suppliers it is provided that every supplier shall be liable to be registered under this act in the State form where it makes a taxable supply of goods or services if its aggregate turnover in a financial year exceeds ₹ 9 lacs. However, this limit is ₹ 4 lacs for the persons conducting business in NE states including Sikkim.
Here, aggregate turnover means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST act, as the case may be. But aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.
3. Persons requiring registration
Following are the persons required to take registration under this act –
(a) Persons making inter-state supply, irrespective of any threshold limit
(b) Casual taxable persons, irrespective of the threshold specified
(c) Persons who are required to pay tax under reverse charge
(d) Non resident taxable persons
(e) Persons who are required to deduct tax under section 37 (TDS)
(g) Input service distributor
(h) Supply of goods or services through electronic commerce operator, other than branded services
(i) Every electronic commerce operator
(j) Aggregator who supplies service under his brand name or his trade name
(k) Other notified persons
In the situation other than above–
(l) Suppliers liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 9 lacs.
(m) Supplier liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 4 lacs. (for NE states including Sikkim)
(n) Persons who were already registered under the earlier law subject to point (l) and (m) above.
(o) Transferee in case where business is transferred.
4. Following table will make some situations regarding registration more clear –
5. Time limit for registration
Person liable to take registration under this act shall be liable to take registration within thirty days from the date on which he becomes liable to registration.
Input service distributor, registered in the erstwhile law is not required to re-register subject to the procedure to be followed by it as prescribed.
6. Other aspects
7. Special provisions relating to casual taxable person and non-resident taxable person