4 Types Of GST Registration in India: Online Process & Eligibility

In a populous and business-driven country like India, understanding the types of GST registration is essential for compliance. Depending on the nature of the business and annual turnover, Indian taxpayers can choose from the following four types of GST registration in India:

1. Regular Taxpayer (Normal Registration)

This is the most common type of GST registration, suitable for businesses that operate on a regular basis in India. The GSTIN is valid for as long as the business is operating and in compliance, and there is no deposit needed.

Threshold Turnover:

• ₹40 lakhs for the supply of goods (₹20 lakhs in special category states).
• ₹20 lakhs for the supply of services (₹10 lakhs in special category states).

Features:

• Eligible to collect GST from customers.
• Can claim Input Tax Credit (ITC).
• Must file monthly/quarterly GST returns (GSTR-1, GSTR-3B, etc.).

2. Composition Taxpayer (Under Composition Scheme)

This type is designed for small businesses looking to reduce compliance burden and GST liability. Businesses registered under this scheme pay a fixed percentage of turnover as tax but cannot claim Input Tax Credit.

Eligibility:

• Manufacturers and traders with turnover up to ₹1.5 crore (₹75 lakhs for special category states).
• Service providers up to ₹50 lakhs turnover.

Not Allowed For:

• Inter-state suppliers.
• E-commerce sellers.
• Businesses dealing in exempt goods.

Features:

• Lower tax rates (e.g., 1% for traders, 5% for restaurants).
• Simplified quarterly returns (CMP-08).

3. Casual Taxable Person (CTP)

A person who periodically provides products or services in a state or union territory without an established place of business is considered a casual taxable person.

Use Case: Ideal for event-based businesses, pop-up stores, exhibitions, etc.

Requirements:

• Must pay GST in advance based on estimated liability.
• Valid for 90 days, extendable upon request.
• Not eligible for Composition Scheme.

4. Non-Resident Taxable Person (NRTP)

A non-resident taxable person is an individual or business located outside India but supplying goods/services to Indian customers occasionally.

Key Features:

• No minimum turnover limit.
• No need for a permanent place of business in India.
• Must appoint an Indian authorized representative.
• Must pay tax in advance and file GSTR-5 returns.

As per Section 2(69) of the GST Act, registration is mandatory for non-residents engaging in taxable supplies in India.

Also Read: How to sell products online without a GST number in India?

How to Choose the Right GST Registration Type?

Selecting the correct type of GST registration in India is crucial to ensure compliance, avoid penalties, and make the most of the applicable tax benefits. Here’s a guide to help you make the right choice based on your business model, turnover, and operations:

1. Assess Your Annual Turnover

Your aggregate turnover is the first factor to consider.

If your turnover is below the threshold, GST registration is not mandatory (except in specific cases like interstate supply, e-commerce, etc.).

2. Consider the Nature of Supply

Ask yourself:

• Do you supply inter-state goods or services?
• Are you selling through e-commerce platforms?
• Are you a seasonal or event-based supplier?

If yes, you may not qualify for the Composition Scheme, and might need to register as a Regular, Casual, or Non-Resident Taxable Person.

3. Evaluate Your Business Operations

4. Check Input Tax Credit (ITC) Requirements

• If your business needs to claim Input Tax Credit, you must opt for Regular GST registration.
• Composition taxpayers are not eligible to claim ITC.

5. Understand Compliance Burden

Regular taxpayers have to file monthly/quarterly returns and maintain detailed invoices.

Composition taxpayers have lesser compliance but also limited features (e.g., cannot issue tax invoices or collect tax from customers).

6. Identify Special Cases

You may be mandatorily required to register, regardless of turnover, if you fall under:

• Inter-state suppliers
• Input Service Distributors (ISD)
• Agents supplying on behalf of others
• TDS/TCS deductors
• E-commerce operators

Conclusion

Navigating the world of GST might feel overwhelming at first, but knowing the types of GST registration in India puts you in control of your business’s tax journey. Whether you qualify for the Regular Scheme, opt for the Composition Scheme to reduce compliance, or fall under special cases like a Casual or Non-Resident Taxable Person, the right registration not only ensures compliance but also impacts your profitability and credibility.

Before registering, evaluate your business’s turnover, structure, and nature of supply — and when in doubt, consult a GST expert to guide you through. Not only is timely and accurate GST registration required by law, but it’s also a wise business move.