Applicable to gst

Hi Nikita!

GST registration is critical because it will enable you to avail various benefits that are available under the GST regime. One such benefit is to avail seamless input tax credit. So it is advised that you do not cancel your registration and continue to take benefits of the same.(See benefits of voluntary registration below)

GST registration is mandatory irrespective of turnover for following persons & businesses

Those making inter-state supply of goods/services
Any person who supplies goods/services in a taxable territory and has no fixed place of business – referred to as casual taxable persons. Registration issued to such a person is valid for a period of 90 days.
Any person who supplies goods/services and has no fixed place of business in India – referred to as non-resident taxable persons. Registration issued to such a person is valid for a period of 90 days.
Person required to pay tax under reverse charge mechanism. Reverse charge mechanism means where the person receiving the goods/services has to pay tax instead of the supplier.
Agents or any other person who makes supply on behalf of other registered taxable persons
Distributors or input service distributors. This person has the same PAN as the office of the supplier. This person is an officer of the supplier, he receives supplies and issues tax invoice to distribute credit of CGST/SGST/IGST.
E-Commerce Operator
Persons who supplies (except branded services) via an e-commerce operator
Aggregator supplying services under his brand name
Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

Persons with turnover less than Rs. 20 lakhs can also register voluntarily under GST.

Voluntary registration under GST

A person may opt to get himself registered voluntarily under GST even if he is not liable to be registered. All the provisions of GST applicable to a registered taxable person will similarly apply to such a voluntarily registered person also, i.e., he will be treated as a normal taxable person.

Advantages of voluntary registration under GST

In spite of composition levy, many small organizations are planning for voluntarily register themselves under GST. This is because composition levy has certain drawbacks.

Voluntary registration will avoid such drawbacks and give the following advantages-

Legally recognized as supplier of goods or services– This helps in attracting more customers

Provide input tax credit to customers-As they can issue taxable invoices,they can collect GST. Their customers can take input credit on their purchases.

Become more competitive– They will be more competitive than other small business as buying from them will ensure input credit.

Take input credit– Voluntarily registered persons can take input credit on their own purchases and input services like legal fees, consultation fees etc.

Make inter-state sales without many restrictions– They can make inter-state sales without many restrictions (they will be treated as casual taxable persons). Thus, it widens the potential market for SMEs.

Register on e-commerce sites or open own e-commerce website– This will widen the scope of their market further.

Be compliant and have a good rating– Registration for GST will ensure that the business is compliant (because most returns are automated). This, in turn, will give a good GST rating and help to boost the business.

Thanks
David
BTHAWK