Under the GST Act, GST Registration can be of various kinds. It is essential that the taxpayer is informed of the distinct kinds of GST Registration and chooses the proper one. The multiple kinds of GST Registration are given below:
Normal Taxpayer: Largest of the businesses in India come under this type. The applicant need not furnish any deposit to fall in the category of a normal taxpayer. Besides, there is no expiration date for taxpayers who come under this category.
Casual Taxable Person: Individuals who want to start a seasonal business or shop can choose for this category. The taxpayer must deposit an advance amount that is equivalent to the anticipated GST liability during the time the seasonal business or stall is present. The term of the GST Registration under this categorization is three months, and it can also be increased or renewed.
Composition Taxpayer: Taxpayers who want to get the GST Composition Scheme can opt-out for this type of GST Registration. Small taxpayers can free themselves of tedious GST rules and return GST at a set rate of turnover. The input tax credit could not be availed by taxpayers belonging to this category.
Non-Resident Taxable Person: In case individuals reside outside India, but supply goods and services to businesses who stay in India, they must select for this sort of GST Registration. Compared to the Casual Taxable Person sort of GST Registration, taxpayers required to pay a deposit that is the same as the anticipated GST payable throughout the time the GST registration is active. The duration for this type of GST registration usually is three months, although it can be extended or renewed at the time of expiry.
- Non-Resident Online Service Provider
- GST TDS Deductor – Government Entities
- Special Economic Zone Developer
- Special Economic Zone Unit
- UN Embassy/ Body/ other notified individuals
- GST TDS Collector – E-commerce Companies
Voluntarily GST Registration
Businesses having turnover lesser than 40 and 20 Lacs can also register under GST, there is no restraint on registration if turnover is below (40/20 Lacs) but, if turnover is higher than prescribed limit, then registration is mandatory. Registering your business under the GST not only supports you in getting your business acknowledged being legally registered but also aid you to avail different benefits like to raise GST Invoice, input tax credit, and many more.
Turnover comprises
the aggregate value of all taxable supplies + inter-state supplies + exempt supplies + export of goods or services or both + It includes supplies made by a person on behalf of his principals (excludes the value of job-worked goods if he is a job-worker) Aggregate turnover can be computed by counting all the supplies made by a business having the same PAN number based on all India.
Multiple GST Registration Number Possible?
An enterprise requires to obtain multiple GST numbers if,
- An enterprise is supplying goods & services from various States; then it compulsorily needed to register under GST in various States.
- Moreover, any enterprise can take several GSTIN even if they are running from a particular State under various verticals to simplify accounting complexity among different businesses.
For instance, ABC LLC involves in the business of selling clothes and software from Bangalore alone. Nevertheless, ABC LLC can use for different GST numbers for their various business fields.
GST REGISTRATION WHEN OPERATING IN MULTIPLE STATES
If a single person is operating in various States, with the same PAN, whether can he operate with a single registration or not is a common question among many taxpayers, Each and Every person which is liable to take the registration they have to get registered separately for each of the States from where he is making taxable supplies and also is liable to get registered. GST Registration must be done in every state separately
Penalty for not Registering Under GST
All the entities and individuals and who meet the eligibility requirements are required to go for GST Registration. Defaulters who neglect to follow the rules and do not pay the tax or make default in payments instead of full refund are liable to pay the penalty. The penalty for tax avoidance by a defaulter will be hundred per cent of the tax amount due. The penalty for not registering under GST is ten per cent of the total tax amount payable subject to a minimum of Rs. 10,000.
GST REGISTRATION UNDER COMPOSITION SCHEME
GST Composition Scheme is a scheme created for small taxpayers to lessen the compliance onus. Small taxpayers can be free of tiring GST formalities and file GST at a fixed rate of turnover. Any individual or entity is having a yearly turnover of less than INR 2 Crores* can opt out composition scheme under when applying for GST registration. *For Northeastern and hilly regions namely Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh the threshold limit is INR 1 Crore.
*CBIC has announced the increase of threshold limit from INR 1 Crore to INR 1.5 Crores. Rates of Tax for small taxpayers
- 2% for manufacturers,
- 5% for the restaurant service sector
- 1% for other suppliers
- File only quarterly Returns
Tax Payer Cannot opt for the composition scheme if you are/you make: -
- engaged in the supply of services - any supply of goods which are not liable to be taxed under this Act
- inter-state outward supplies of goods
- supplies through electronic commerce operators who are required to collect tax under section 56.
- a manufacturer of notified goods
- a casual dealer
- a Non-Resident Foreign Taxpayer
- a person registered as Input Service Distributor (ISD)
- a person registered as TDS Deductor/Tax Collector
To opt for the Composition Scheme on the GST Portal, perform the following steps: 1. Log in to the Taxpayers’ Interface Step 2. Go to Services > Registration > Application to Opt for Composition Scheme Step 3. Fill the form as per the form specification rules and submit
Amendment to GST Registration
There may circumstances where we may have to amend the GST Registration, as a change of address, change of partners/Directors there is a procedure to amend the GST Registration
Cancelation of GST Registration
If the GST Registered person does not carry on any business or the business has closed can apply for cancellation of GST Registration