Registration under gst for interstate purchases
Querist : Anonymous
Querist : Anonymous
1. Interstate Supply vs. Interstate Purchase
Interstate supply means supplying goods or services from one state to another. It’s about the movement from your business to customers in another state.
Interstate purchase means buying goods from another state (like buying from Karnataka if your business is in Kerala).
2. Is GST Registration Mandatory for Interstate Purchases?
If you are only purchasing goods from another state but selling them within your own state (Kerala), you do NOT need mandatory GST registration if your aggregate turnover is below Rs. 20 lakh (the threshold for Kerala).
The mandatory GST registration irrespective of turnover applies only to businesses making interstate supplies, i.e., selling goods or services to other states.
3. Threshold Limit Applicability
If you are not making interstate supplies (selling outside Kerala), you can avail the Rs. 20 lakh threshold limit.
If you start selling to other states (interstate supply), you must register regardless of turnover.
4. Summary:
Scenario GST Registration Requirement
Interstate purchase only No mandatory registration if turnover < 20L
Interstate supply (selling) Mandatory registration, no turnover limit
5. Additional Points
If you register voluntarily, you can claim input tax credit on interstate purchases.
Interstate purchase without GST registration may not be a problem but you won’t be able to claim input tax credit.
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