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Does Goods and Services Tax (GST) Apply to Me?

GST applies to everyone whether you are a goods supplier/manufacturer/transporter or service provider.

GST Applicable to which businesses?

GST applies to the following businesses:

  1. Trade and commerce
  2. Manufacturer
  3. Professionals
  4. or any other business, regardless of volume or frequency.

Does GST apply to all persons?

Yes, GST applies to each person whether

  1. Individuals
  2. Hindu Undivided Family,
  3. Private Limited Company
  4. Public Limited Company
  5. Firm
  6. Limited Liability Partnership
  7. Association of Persons
  8. Co-operative Society
  9. Society
  10. Trust
  11. NGO and so forth

It shall be noted that the GST does not apply to the Agriculturists. Here agriculture consists of sericulture, floriculture, horticulture, agricultural farming. However, it does not include dairy farming, poultry farming, breeding of stocks, rearing and gathering of fruits, seedlings or plants.

When GST registration is required?

To obtain GST Registration the person must have PAN. Howsoever, the person who is a non-resident can obtain GST registration based on those documents as may be prescribed by the Government of India.

In addition to this, the taxpayer can get its different business verticals in state separately registered.

But to obtain GST registration your aggregate turnover shall more than and equal to 40 Lakh INR and for some special states the aggregate turnover limit is 20 Lakh INR or more. However, any person whose turnover is less than the above-mentioned turnover limit can also get registered voluntarily. Here the aggregate turnover means the turnover where the Aggregate turnover means the total value of all supplies (whether taxable or exempt), goods or/and services export, and inter-State supplies of goods or/and services under the same PAN excluding taxes charged under IGST Act, CGST Act, and SGST or UTGST Act whichever the case may be.

Other Scenarios Where GST registration is mandatory regardless of turnover

Here are the scenarios where GST registration is mandatory regardless of turnover:

  1. GST Registration will be compulsorily applicable to the person making an inter-state supply of goods or/and services.
  2. In the case of a Casual Taxable Person (CTP) who does not have a fixed place of business. Here the GST Registration is given for 90 days.
  3. In the case of a Non-Resident Taxable Person (NRTP) who does not have a fixed place of business. Here the GST Registration is given for 90 days.
  4. In a case where the Reverse Charge Mechanism (RCM) is applicable. RCM Reverse charge mechanism is a situation where the recipient of the goods is liable to pay tax in place of the supplier. Any person who carries out supplies on behalf of another registered taxable person such as Principal and Agent.
  5. Input Service Distributors (ISD). Input Service Distributor is a person who receives supplies and issues tax invoice to distribute CGST/SGST or IGST Input Tax Credit (ITC).
  6. e-Commerce Operator: an e-Commerce operator is a person who provides an online platform to the suppliers and the buyers of the goods or/and services.
  7. A person supplying OIDAR (online information and database access or retrieval) Services from outside India to a person residing in India excluding the person who already registered taxable person.