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What are the types of GST Registration?

GST registration is a process by which a taxpayer gets himself registered under GST. GST registration is mandatory for every business or corporation involved in buying and selling of goods or services. Those with an annual turnover of more than 20 lakh rupees for supply of services and 40 lakh rupees in case of supply of goods is the threshold limit.

A casual taxable person, Non-Resident Taxable Person, e-commerce aggregator, agents of supplier and input service distributor etc. are required to register under GST. Types of GST Registration depends on the nature of the business.

Types of GST Registration:

These are the types of GST registration for which anyone can apply:

i) Normal Taxpayer

This category of GST registration applies to taxpayers operating a business in India. Businesses whose turnover exceeds Rs 40 lakh and limit of Rs 20 Lakh in case of special category states in a financial year are required to register as normal taxable people. 

Taxpayers registering for normal taxpayer does not require a deposit and also provided with unlimited validity date. Normal taxpayers can avail of an input tax credit of GST paid on the purchase of goods or services or both.

ii) Composition Scheme

The Composition Scheme is a simple and easy scheme under GST for taxpayers. Only companies that have a yearly turnover of up to Rs. 1 Crore are eligible for such a registration process.

Taxpayers enrolled under the Composition Scheme can pay a flat GST rate. However, the taxpayer would not be allowed to claim the input tax credit.

iii) Casual Taxable Person

Occasional or seasonal businesses need to register their businesses under GST for this category. Businesses need to make a deposit equal to the GST liability from the occasional operations.

The tenure for registration is 3 months. However, businesses can apply for renewal and extensions.

iv) Input Service Distributor

Input Service Distributor means an office of the supplier of goods/services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST/SGST/IGST paid on the said services to your branch with the same PAN. (It must be a supplier of taxable goods /services having the same PAN as that of the office referred to above).

Thus, only credit on input services can be distributed and not on input goods or capital goods. This is a new concept for assessees who are currently not registered as input service distributors. However, this facility is optional in nature.

v) Non-Resident Taxable Person

Non-resident taxable person (NRI) under GST is any person or business or not-for-profit supplying goods or services but have no fixed place of business or residence in India. Thus, any foreign person or foreign business or organisation supplying goods or services to India would be a non-resident taxable person – requiring compliance with all GST regulations in India.

The normal tenure is three months. However, taxpayers can extend or renew the registration if required.

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Note: This Post was last updated on February 9, 2023

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