All Need to know about the Compulsory Registration under GST

Section 24 deals with Central goods and service tax and contain the provision of compulsory Registration. In the GST Regime it is mandatory for the business to get GST Registration. Otherwise they will face penalties. There are certain limits and conditions after which they need to get compulsory GST Registration. There are many benefits of getting GST Registration like input tax credit, reduction in cost, logistics efficiency increase, increase in credibility and many others.

Professional utilities can help you to get GST Registration in a simple and hassle free manner.

Central Goods and Service Tax Act 2017, Under Section 24. There are certain categories who need to take compulsory registration as mentioned below.

Casual Taxable Person - As the name suggests casual means entity or person engaged in taxable activities not on regular basis but infrequently or sporadically. Any business entity who occasionally engaged in taxable supply of goods and services need to take compulsory GST Registration.

Non-resident taxable person - Any Non-Resident who is engaged in selling goods and services as agent or principal. They do not live in India and have no fixed place of business in India. If Non -Resident is making any kind of taxable supply in the taxable territory they are required to get GST Registration regardless of the amount of transaction or frequency.

E- Commerce Operator - Any person who manages or owns a digital platform i.e sell and buy goods and services over a digital network. E-Commerce businesses need to take compulsory GST registration regardless of the turnover.

Aggregate Turnover - Any firm which has annual turnover of more than 40 lakhs in supply of the goods and 20 lakhs in supply of the services need to get compulsory GST registration. This limit is 10 lakhs in northern eastern states and hill areas.

Inter State - Person is said to be engaged in inter state supply when location of supplier and place of supply are different. When sales of commodities is outside the state of registration then it is compulsory to get yourself registered under GST. Before initiation of Inter-State supplies getting GST Number is necessary.

Taxpayer of Reverse Charge Mechanism - Person who is liable under reverse charge mechanism needs to get compulsory GST Registration. There is an exemption only if aggregate turnover is less than the exemption limit. Under this goods and services recipient is liable to pay all provision and tax.

OIDAR - Compulsory Registration is needed if services are provided over the internet. No seller and buyer has a physical interface. It is Online Information Database Access and Retrieval Services

Geographic Factor - Compulsory GST Registration may depend upon the geographic factors also. In some jurisdiction or specific region Businesses may need GST Registration and some not irrespective of the turnover.

Business Types - GST Registration depends upon the types of the business or activity like e-commerce operator , manufacturers, traders has to take registration

Input Tax Credit - Businesses registered under GST can take input tax credit paid on their purchase. This helps in reducing the overall tax liability. They can deduct GST of input from GST collected on output.

Reporting and Compliance - After registration of the business under GST. They have to maintain proper records, file regular GST, pay GST on purchase and submit a net amount to the tax authorities.business have to fulfil many compliances.

Audit of Compliance - After GST Registration tax authorities perform periodic audits. They audit invoices, records,and transactions to maintain compliance and accuracy. They are following the GST regulation and rules.

There are many benefits of Compulsory Registration under GST are mentioned below -

Easy Compliance - There is less compliance due to GST Registration. It has simplified the taxation and multiple taxes are avoided. There is only one return as compared to multiple returns.

Transparency - Due to the GST system, the government is able to keep track of all the taxes businesses pay. GST Registration leads to increase in transparency as the government can detect tax evasion easily.

Input Tax Credit - Under GST regime registered taxpayers receive input tax credit on taxes paid on input which is used to pay against tax payable on purchase . Due to this tax burden on the output is reduced.

Flow of ITC is consistent - Compulsory registration makes sure that ITC is consistently transferred from suppliers to beneficiaries on a national level.

Legal Recognition - Compulsory GST registered taxpayers get recognition as suppliers of goods and services. They also get a legal permit to collect taxes.

Businesses need to get compulsory GST Registration if their annual turnover is 40 lakhs for the supply of goods and 20 lakhs for the supply of services. Under Certain conditions businesses need to register despite the turnover. There are many benefits of Compulsory GST Registration legal recognition, transparency, increase in profit of firms, input tax credit, increase in credibility, and many others.