WHEN GST IS COMPULSORY AND WHEN ITS NOT ?

  • By:Durlov Bhattacharya
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Compulsory/Mandatory Registration under GST

This is one of the most important information if you are planning to get GST registration. If you fall any of the category below that you need a compulsory GST registration irrespective of your turnover. E.g. if you fall in any category below, then your turnover is Rs.10 only then also you need to take the GST registration.

Here are 12 cases where GST registration is compulsory/mandatory irrespective of GST registration:

  • Person making any inter state taxable supply.
  • Casual taxable person making any taxable supply.
  • Persons who are required to pay tax under Reverse Charge.
  • Non resident taxable person making any taxable supply.
  • Persons who are required to pay tax under Reverse Charge.
  • Persons who are required to deduct TDS (Govt Departments).
  • Person supplying goods/services on behalf of someone else (agent)
  • Input service Distributor – Whether or not register.
  • Person selling on e-commerce platform like Flipkart, amazon etc.
  • Every e-commerce operator – Flipkart, amazon, snapdeal etc.
  • Every person providing online information database access from outside India – AWS, Godaddy etc.
  • Anything else notified by the Government from time to time.

Cases where GST Registration is not Required

There are only two cases where GST registration is not required at all even if the turnover is more than 20 lakh. The two cases are as follows:

  • PERSON SUPPLYING EXEMPTED GOODS/SERVICES

If a person is engaged exclusively in the business of supplying goods or services or both which is either not liable to tax or is wholly exempt, then he shall not be required to register under GST.

  • AN AGRICULTURIST TO THE EXTENT OF SUPPLY OF PRODUCE OUT OF CULTIVATION OF LAND

An agriculturist means an individual or a HUF who undertakes cultivation of land by own or by use of labor.

Posted in: Goods & Service Tax (GST)

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