GST registration can be obtained voluntarily by any person or entity irrespective of turnover. GST registration becomes mandatory if a person or entity sells goods or services beyond a certain turnover. It is mandatory for businesses with turnovers exceeding specified thresholds (Rs. 40 lakhs, Rs. 20 lakhs, or Rs. 10 lakhs, as applicable) to register as normal taxable entities.
For specific businesses, GST registration is compulsory. Failure to register is considered a GST offence, leading to substantial penalties.
If a business operates from more than one state, the taxpayer should obtain a separate online GST registration for each state.
Small-scale businesses looking for reduced compliance and lower GST rates can choose the Composition scheme. Traders with an aggregate turnover below Rs 1.5 crore (or Rs. 75 lakhs for North-Eastern states and Himachal Pradesh) can opt for this scheme. Furthermore, the government has expanded the Composition scheme to include service providers with an aggregate turnover of up to Rs. 50 lakhs.
Aggregate turnover should be taken into consideration to calculate turnover. Aggregate turnover means the aggregate value of all taxable supplies excluding inward supplies liable to reverse charge but including exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same PAN, to be computed on an all-India basis. It is to be noted that CGST, SGST, UTGST, IGST and cess should be excluded while calculating aggregate turnover.
For those failing to pay taxes or making genuine errors in payment, a penalty of 10% of the tax amount due is applicable, with a minimum of Rs.10,000.
In cases of intentional tax evasion, the penalty increases to 100% of the tax amount due.
GST registration encompasses various types, including regular, casual taxable persons, non-resident taxable persons, and eCommerce operators.
*Casual taxable persons, non-resident taxable persons, and eCommerce operators are obligated to obtain GST registration regardless of their turnover.
GSTIN, which stands for Goods and Services Tax Identification Number, is issued to entities with an Online GST registration in Delhi. This identification number is comprised of 15 characters. The allocation of GSTIN is determined by the PAN (Permanent Account Number) and the State of the applicant. In a GST registration number, the initial two digits indicate the State Code, while the subsequent 10 digits represent the PAN of the applicant.
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