GST Eligibility Criteria for Registration
The GST is a Value-added Tax, it is a single indirect tax levy on manufacture, sale, import, and consumption of goods as well as services at the India level. It replaced a total of 15 indirect tax (both state & Central). In India, GST has been struggling for parliament approval for more than 12 years. Online GST Registration is simple and a completely online process. Here, we will discuss the GST Eligibility of businesses.
GST Eligibility Criteria for Registration Purpose
- GST will be applicable to supply, not just on sale. Therefore, a stock transfer will also attract GST. GST Registration is compulsory. If your combined supply is over 20 lac, then you will be required to register and pay the applicable GST, except for 11 specified Special Category States including the states of North East. For the Special Category States, GST is applicable after 10 Lac aggregate turnover in a year.
- The dealers who were registered under the previous VAT/ Service Tax / Excise or any other Act are migrated to GST. After migration, they were granted a provisional registration number. After the granting of a provisional GST number, they were required to apply for final registration within six months.
- Software companies and other outsourcing companies who were doing an export of services were also required to complete the GST migration process and obtain a GST Registration number to be entitled to tax exemption on the export of services outside India.
- If you are doing inter-state sales in the present or will be doing it in future, GST Registration is mandatory irrespective of turnover.
GST Administration & Enforcement Agency
- States will administer and enforce the GST for a business’s entity with an annual turnover of less than 150 Lakh in a financial year.
- The central government and state government will jointly oversee the effective enforcement of GST for a business entity if turnover is more than 150 Lakh in a financial year.
- National Anti-profiteering Authority is also introduced to ensure that every tax benefit and relief is forwarded down to the final recipient.
What’s the Benefit of Registering a Business Under GST?
- Every registered entity will get a registration certificate as a supplier of goods or services.
- The ease of doing business will be the biggest advantage after online GST registration in India. You will get 100% credit of input tax paid on the purchase of goods from any of the states in India.
- The registered entity shall be legally authorized to collect tax on the sale and pass the credit of taxes paid on the goods supplied to purchasers or recipients.