GST Registration Requirement for different Taxpayers

29 Apr, 2021

GST registration is mandatory for persons whose turnover exceeds Rs. 40 lakhs & Rs. 10 lakhs for North Eastern & Hilly states. For businesses engaged without the GST registration, it will be an offence under the GST Act^[1]. Different types of taxpayers are required to have GST registration. In this article, we will look into the GST registration requirement for various categories of taxpayers.

GST registration requirement for different taxpayers

Category of Taxpayer	Voluntary GST Registration	Compulsory Registration& its Threshold Limit
1. Individual
Normal casual taxable person	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
Unsound mind or minor	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
Legal Heirs	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
Non Resident having taxable supply	N/A	Compulsory GST Registration is required
2. HUF
Hindu Undivided Family	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
3. Company
Domestic Company	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
Foreign company	N/A	Compulsory GST Registration is required
4. Firm
Partnership Firm	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
Limited Liability Partnership Firm	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
5. Association of Persons
Co-operative society	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
6. Trust
The Charitable or religious trust must fulfil the following conditions: Must be registered under section 12AA of Income Tax Act;Charitable activities or services performed by entities	N/A	N/A
Trust other than above	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services; Rs. 10 lakhs for goods or services in NE & hilly states.
7. Government Authority
Government or Local Authority	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services;Rs. 10 lakhs for goods or services in NE & hilly states.
8. Artificial Judicial Person
Artificial Judicial Person (for example, ICAI University)	Yes	If the threshold limit crosses: Rs. 40 lakhs for goods;Rs. 20 lakhs for services;Rs. 10 lakhs for goods or services in NE & hilly states.

Additional conditions for GST registration requirement

Some conditions are applicable for GST registration. The conditions are:

The person who is engaged in inter –state supply of taxable goods or services or both.
The tax is to be paid under the reverse charge mechanism.
Tax is to be paid by the person under section 9(5) of the Act.
The person is liable to deduct tax at source.
A person who is engaged in supply of taxable goods or services via an e- commerce operator.
Persons who are engaged in the supply of taxable goods or services or both on behalf of another registered taxable person, as an agent or otherwise.

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Conclusion

GST registration is compulsory for persons engaged in business whose threshold limit exceeds Rs. 40 lakhs & Rs. 10 lakhs for NE States & Hilly areas. The categories of taxpayers are listed in the table above for the GST registration along with the requirements & the threshold limit for the registration. Thus, the persons need to be aware of the GST registration requirement.

Read our article:GST Registration for Sole Proprietorship

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