In India, any business whose annual turnover exceeds Rs. 40 lakh (or Rs. 20 lakh for businesses operating in north eastern states) is required to register under Goods and Services Tax (GST). Additionally, businesses involved in e-commerce, regardless of their annual turnover, are also required to register for GST. Service providers and suppliers who supply goods or services from one state to another are also required to register for GST, regardless of their turnover. However, some businesses such as agricultural producers or small-scale cottage industries are exempt from GST registration.
GST registration is classified into several types, and understanding these categories is crucial for navigating the registration process effectively. Below is a summary of the various forms of registration:
Who is Eligible? |
Type of Registration |
Regular Taxpayer |
No advance deposit is required from businesses or individuals registering under this category. The majority of companies in India fall under this classification. |
Casual Taxable Person |
Individuals starting seasonal or temporary businesses must register under this category. They are required to make a deposit equal to their estimated GST liability. The registration is valid for 3 months but can be renewed or extended if necessary. |
Non-Resident Taxable Person |
Individuals living outside India who supply goods or services to Indian residents on an occasional basis must register under this category. They must pay a deposit equal to their expected GST liability. The registration is typically valid for 3 months, with an option for extension or renewal. |
Composition Scheme |
The composition registration simplifies the GST process. Businesses under this scheme pay a fixed annual amount, regardless of actual earnings. Only companies with an annual turnover of up to ₹1 crore are eligible. |