No, every business is not required to get registered under GST. The applicability of GST registration is dependent on your business Aggregate Annual Turnover (AATO). Any business into the supply of goods or services with a specific turnover needs to register under GST.
Who is Liable to get Registered under GST?
GST registration is mandatory for-
- Businesses involved in the supply of goods with turnover in a financial year exceeding Rs.40 lakhs (Rs.20 lakh in some states such as those in the North East).
- Businesses involved in the supply of goods with turnover in a financial year exceeding Rs.40 lakhs (Rs.20 lakh in some states such as those in the North East).
- Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too.
- When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.
- A person making inter-state supplies
- Casual taxable person
- Non-Resident taxable person
- Agents of a supplier
- Those paying tax under the reverse charge mechanism
- Input service distributor
- e-Commerce operator or aggregator*
- Person who supplies via e-commerce aggregator
- Person supplying online information and database access or retrieval (OIDAR) services from a place outside India to a person in India, other than a registered taxable person.
Note: If your turnover is supply of only exempted goods/services which are exempt under GST, this clause does not apply.
**e-commerce sellers/aggregators need not register if total sales is less than Rs. 20 lakh.
Can an individual register for GST?
Yes, an individual can register under GST with his/her personal PAN.
Can a salaried person apply for GST?
No, a salaried person is not required to register under GST. But if you are a freelancer i.e. working as a freelance designer, writer, lawyer, architect, developer, sales professional, etc. then you may be required to pay GST as it falls under the ‘services’ category.
What is the Penalty for not obtaining GST registration?
An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.
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Note: This Post was last updated on February 6, 2023
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