4 Types of GST registration in India in 2022
Many taxes like VAT, service tax, excise tax, etc. have been subsumed under a tax called the Goods and Services Tax (GST) to facilitate the collection of the tax. Registering under GST is mandatory for businesses to provide different kinds of services. A firm with a financial year turnover of 40 lakhs or more (20 lakhs in case of special category states) has to register under the GST scheme.
However, before registering a business for GST, one should know about the various types of GST registration options available to them. Registration for GST is an online method by the central government under the GST portal. The Central government assigns a 15-digit unique code also known as GST number or Goods and Service Tax Identification Number (GSTIN), to a business after it successfully registers for GST.
This article will acquaint you with the numerous types of GST registration options available in India and who is eligible to register under GST.
Eligibility requirements for GST registration
Businesses with any of the following criteria are eligible to register under the GST
- Businesses whose annual revenue generated is 40 lakhs or more ( 20 lakhs in the case of certain states). However, this rule does not apply to businesses that sell exempted goods.
- Individuals selling through e-commerce platforms like Myntra, Amazon,etc are eligible for a GSTIN.
- Casual and non-residential taxable individuals.
Types of GST registration for Indian taxpayers
In a populous nation like India, most enterprises have to register themselves with GST so people need to be aware of the different types of GST registration used in India. There are 4 types of GST registration in India-
- Regular Taxpayer– This type of GST registration is preferred by most of the business that operates in India. Deposits are not necessary for any business to register under regular taxpayers. Under this, a taxpayer does not have to extend his GSTIN registration since they have everlasting validity. Those businesses whose threshold limit exceeds Rs 40lakhs ( Rs. 20 lakhs in special category states) are needed to register as regular taxpayers in India.
- Composition Taxpayer–A manufacturer or enterprise with annual revenue of less than Rs. 1.5 crores (Rs.75lakhs in case of special category states) has to get a registry under the GST Composition Scheme to register as a composition taxpayer. Under this, businesses are required to pay a fixed amount irrespective of their yearly turnover. However, in the case of composition registration, the input tax credit cannot be claimed by the taxpayers.
- Occasional Taxpayer– People who start a business often have a fixed place to run their business. However, that may not be the case for some business owners. People who do not have a permanent place to operate their business but still operate their business occasionally in places where GST is applicable have to register under this scheme. The taxpayer has to pay an amount of tax in advance which is equivalent to the GST liability of seasonal operations,which is not the case for normal taxpayers. The registration tenure is 3 months after which the business has to appeal for extensions.
- Non-resident Taxpayer– Individuals staying in foreign countries who conduct business operations occasionally with the residents of India are non-resident taxable individuals.According to Section 2(69) of the GST Act, it is compulsory for them to register their corporation as non-resident taxable individuals in order to operate their business in the country. Registration under this scheme does not have a threshold limit. Moreover, a stable location for conducting business is not a criterion for a non-resident taxable individual.
Book end-to-end experts consultation with Odint finance and legal experts
Any firm wishing to register for GST in India must be familiar with the various GST registration options. If a business is well versed with the types of GST registration available in the country it will assist the business in selecting the greatest solution that is suitable for it.
If you still have more doubts regarding the different types of GST registration available in India, we are Odint Consultancy. We will certainly help you with your doubts as best as we can.
In India, there are currently four categories of GST registration. They fall under the categories of regular taxpayers, composition taxpayers, occasional taxpayers, and non-residential taxpayers.
Any company that has a yearly revenue of at least 40 lakhs is required to register its operations with the GST Act. Though, the threshold amount is 20 lakhs for Special Category States like Assam.
The best choice is to register as a regular taxpayer because no deposits are necessary for businesses to do so at the time of registration. They also do not need to re-register their GSTIN because it has indefinite validity.
Yes, anyone who lives outside of India yet occasionally conducts their business in India must register their company as a non-resident taxpayer.
There are a few online stores where products can be sold without a GSTIN, including eBay and Infibeam. However, in order to sell items on other e-commerce platforms like Flipkart, Amazon, etc it is mandatory to have a GSTIN.
Meet Apurva Gaur, an accomplished and dedicated Company Secretary, whose passion for corporate governance and legal compliance has shaped her remarkable journey in the business world. With a wealth of experience and a keen eye for detail, Apurva has emerged as a leading authority in the field of corporate governance, earning accolades for her invaluable contributions to the companies she serves.