All businesses must mandatorily register for GST if their annual turnover exceeds Rs.20 Lakh in a fiscal year. However, if a person is exclusively engaged in the supply of Goods, the limit for registration exceeds Rs. 40 Lakh. Businesses within special category states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim are subject to distinct regulations. For GST registration in these states, the law stipulates an annual turnover of Rs.20 Lakh for the supply of goods and Rs.10 Lakh for the supply of services.
For registration, one must make an application through the GST Portal. Owners of businesses can fill out an online form on the GST site and upload the required documents. Carrying out business without registering for GST is against the law, and heavy penalties, including prosecution, are imposed if one does so. Thus, a business owner must register for GST.
IGST (Goods and Services Tax) is a single unified tax system that replaced a range of indirect taxes in India, such as VAT, service tax, and excise. Any business involved in the supply of goods or services whose aggregate turnover exceeds ₹20–₹40 lakhs (depending on the state and nature of business) must obtain a GSTIN (GST Identification Number).
Legal Mandate: Operating a taxable business without GST is illegal and invites penalties.
Input Tax Credit (ITC): Registered businesses can claim credit for the GST paid on purchases.
Tax Invoice Generation: Only GST-registered entities can issue valid GST tax invoices.
E-commerce & B2B Sales: Required for listing on platforms like Amazon, Flipkart, and for bulk selling to corporates.
To summarise, if one’s business revenue is below the GST threshold, it is not required to register for GST. However, one can still register for GST to avail of various benefits, such as simplifying taxation compliances, eligibility for Government schemes that can help in business growth, increase market competitiveness, thus leading to accessibility to a larger customer base.
The GST registration process is free of charge. However, if the person or business fails to obtain GST registration, he becomes liable for 10% of the tax amount to be paid or Rs.10,000 whichever is higher. Further tax evasion will result in a penalty of 100% of the tax amount owed.
As long as the enrolment procedure is correctly completed in accordance with the laws established, the GST Registration process typically takes 3 to 6 working days.
Yes, one can cancel the GST registration through the GST portal. They can go to the heading of registrations under the GST portal to cancel the registration.