GST Registration

1. What is GST?

Goods and Services Tax (GST) is a unified, indirect tax levied on the supply of goods and services across India. It replaced multiple indirect taxes such as VAT, Service Tax, Excise Duty, etc., creating a single taxation system.

Under GST, tax is charged at every stage of the supply chain from manufacturer to wholesaler to retailer but with the benefit of Input Tax Credit (ITC). This ensures that tax is paid only on the value added at each stage.

GST eliminates the cascading effect of taxes (commonly known as “tax on tax”), making the taxation system more transparent, efficient, and business-friendly.

2. Types of GST in India

GST in India is categorized into four components to enable fair tax distribution between the Central and State Governments:

• CGST (Central Goods and Services Tax) - Levied and collected by the Central Government on intra-state transactions (i.e., within the same state).

• SGST (State Goods and Services Tax) - Levied and collected by the State Government on intra-state transactions.

(Both CGST and SGST are charged simultaneously on the same transaction within a state.)

• IGST (Integrated Goods and Services Tax) - Levied and collected by the Central Government on inter-state transactions (i.e., supply of goods/services between different states or imports/exports).

• UTGST (Union Territory Goods and Services Tax) - Levied on transactions conducted within Union Territories (e.g., Chandigarh, Lakshadweep, Andaman & Nicobar Islands, etc.), along with CGST.

This dual GST model ensures seamless tax collection and equitable revenue sharing between central and state authorities.

3. Who Needs to Register for GST?

GST registration is mandatory for certain businesses and individuals based on turnover, nature of business, and mode of supply.

Mandatory Registration Applies To:

1. Businesses with annual turnover exceeding:

• ₹40 Lakhs (Goods)
• ₹20 Lakhs (Services)

(Threshold may vary for special category states.)

1. E-commerce operators and sellers selling through e-commerce platforms.
2. Businesses engaged in inter-state supply of goods or services.
3. Persons registered under the previous indirect tax laws (VAT, Service Tax, Excise, etc.).
4. Casual taxable persons and non-resident taxable persons.
5. Input Service Distributors (ISD) and agents supplying on behalf of others.
6. Voluntary Registration
7. Businesses below the threshold limit may opt for voluntary GST registration to:

• Claim Input Tax Credit (ITC)
• Enhance business credibility
• Expand interstate operations
• Work with large corporates requiring GST compliance

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