Compulsory GST Registration on the basis of State & Turnover of Business

GST Registration on basis of State & Turnover

In order to run any business, the supplier of goods or services or both is generally required to obtain GST Registration. When a business is registered under GST, it is allotted a unique number from the concerned tax authorities. Consequently, this number is used for the purposes of collecting tax on behalf of the government and to avail Input Tax Credit. Further, without GST Registration, a person can neither collect tax from his customers nor claim any Input Tax Credit of tax paid by him.

What is the nature of GST Registration?

The GST Registration in India is PAN based and State specific. Supplier has to register in each State or Union territory. This is from where he effects the supply of goods or services or both. Having stated that, this GST Registration is not tax specific which means that there is a single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.

Also Read: Rules Related to setting off of Input Tax Credit

Who has to get GST Registration on the basis of Turnover?

GST being a tax on the event of “supply”, every supplier needs to get registered. However, businesses having Annual Aggregate Turnover (AATO) of more than the prescribed limit. In addition, as per their business in the relevant State are required to obtain GST Registration.

Special Category States I:
If the business is in the State of Manipur, Mizoram, Nagaland or Tripura, then it is required to obtain GST registration, if AATO exceeds
– Rs. 10 Lacs, in case the business is exclusively engaged in supplying “goods”
– Rs. 10 Lacs, in case the business is engaged in providing “services” or “goods+ services”

Also Read: Reverse Charge Mechanism Under GST

Compulsory GST Registration (Special Category I)

Special Category States/Union Territory II:
If the business is in the State/Union Territory of Arunachal Pradesh, Meghalaya, Puducherry, Telangana, Uttarakhand or Sikkim. Furthermore, then it is required to obtain GST registration, if AATO exceeds
– Rs. 20 Lacs, in case the business is exclusively engaged in supplying “goods”
– Rs. 20 Lacs, in case the business is engaged in providing “services” or “goods+ services”

Also Read: Various Types Of Supplies Under GST

Compulsory GST Registration (Special Category II)

Normal Category States/Union Territory
If the business in any other State/Union Territory apart from the ones mentioned, i.e. at Ladakh, Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Uttar Pradesh, Chandigarh, Rajasthan, Madhya Pradesh, Bihar, Jharkhand, West Bengal, Odisha, Chattisgarh, Maharashtra, Goa, Karnataka, Andhra Pradesh, Tamil Nadu, Kerala, Lakshadweep or Andaman & Nicobar Islands, then it is required to obtain GST registration, if AATO exceeds
– Rs. 40 Lacs, in case the business is exclusively engaged in supplying “goods”
– Rs. 20 Lacs, in case the business is engaged in providing “services” or “goods+ services”

Also Read: Inspection, Search, Seizure & Arrest Under GST

Compulsory GST Registration (Normal Category)

To sum it up...

The GST Registration on the basis of State and Annual Aggregate Turnover is to be taken by the suppliers are as follows:

COMPULSORY GST REGISTRATION (State & Turnover basis)
FAQs

Yes, you need to obtain two GST registrations, depending upon the number of offices you have in other States. The GST Registration is PAN based and State specific. Therefore, a business entity having its branches in multiple States will have to take separate State-wise registration for the branches in different States.

No, you are not required to obtain two GST registrations, since both the business are in the same State and one office is the branch of the other proving same services. However, if you still wish to obtain two separate GST Registrations for your offices, then that may be obtained too from the Department.

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