GST Registration Basics

The Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit code assigned to each registered taxpayer under the Goods and Services Tax (GST) regime in India.

The first two digits of the GSTIN represent the state code based on the 2011 census. For example, Delhi's state code is 07.

The next 10 digits of the GSTIN correspond to the taxpayer's Permanent Account Number (PAN).

The 13th digit of the GSTIN is the registration number assigned to the entity by the government, linked to their PAN.

The 14th digit of the GSTIN is always 'Z' by default. It acts as a system verification digit.

The 15th digit of the GSTIN is a check digit used to detect any errors in the previous digits. It can be a number or an alphabet.

Any supplier in India who makes a taxable supply of goods or services and whose annual turnover exceeds ₹20 lakh (₹10 lakh for certain special category states) must register under the CGST Act 2017 and obtain a GSTIN.

Businesses with multiple places of business within a single state can choose to register each premise separately or under a single registration with a principal place of business (PPoB) and additional places of business.

The total value of all supplies made by a taxable person, including taxable supplies, exempt supplies, exports, and inter-state supplies of entities with the same PAN, calculated on an all-India basis. It excludes central tax, state tax, union territory tax, integrated tax, and cess.

The person supplying goods or services, including agents acting on behalf of the supplier.

States that receive special financial assistance from the central government due to their geographical location, economic conditions, or other factors.

The supply of goods by a registered job worker after completing job work is treated as the supply of goods by the principal. The value of these goods is not included in the aggregate turnover of the registered job worker.

A taxable person is exempt from registration if their aggregate turnover in a financial year is less than or equal to INR 20 lakhs (or INR 10 lakhs as the case may be).

The value of inward supplies on which tax is payable by the recipient on a reverse charge basis is excluded from aggregate turnover.

The expression 'aggregate turnover' includes all supplies made by the taxable person, whether on their own account or on behalf of their principals.

Exports of goods or services are included in the aggregate turnover.

A special state can request the government to increase the threshold for mandatory registration to a maximum of INR 20 lakhs. This threshold is for businesses with a turnover of less than INR 20 lakhs. The government can decide on the new threshold based on recommendations from the GST Council.

Goods-only businesses can apply to the government for a higher registration threshold, reaching a maximum of INR 40 lakhs. This higher threshold applies specifically to businesses that only sell goods and not services, providing more flexibility for smaller businesses.

A person engaged in providing various services is considered to be exclusively involved in goods supply if their only service involves extending deposits, loans, or advances. This classification is based on the fact that the consideration for these services is interest or discount, which is closely tied to the goods supply.

Any individual who was previously registered or licensed under a law that existed before the implementation of the GST Act is required to register under the new act, starting from the appointed day. The appointed day refers to the date when the provisions of the GST Act became effective.

The appointed day is the date when the provisions of the GST Act come into force. In the context of the CGST Act 2017, the appointed day is July 1st, 2017.

When a business registered under the GST Act is transferred to another person as a going concern, either through succession or otherwise, the new owner or successor must register under the Act. They become liable for registration from the date of the transfer or succession.

In the case of a business transfer due to an amalgamation, demerger, or other similar events, the transferee is required to register with effect from the date the Registrar of Companies issues the Certificate of Incorporation. This certificate makes the high court or tribunal's decision on the amalgamation or demerger effective.

A transferee is a person or entity that takes ownership of a business or its assets. This happens in cases of business transfers, amalgamations, or demergers.

The minimum value of goods or services that a business must supply in a year to be required to register for GST. If the annual turnover falls below the threshold limit, the business may be exempt from registration.

The value of goods or services supplied by businesses in states other than the special category states exceeds 20 lakh. This limit is lower, specifically 10 lakh for some states like Manipur, Mizoram, Nagaland, and Tripura.

For states classified as Special Category States, the annual turnover threshold for mandatory GST registration is 20 lakh. This limit is lower compared to regular states, with 40 lakh being the benchmark for non-special category states.

A specific value of goods, services, or both combined, which must be met by a business to be considered for mandatory GST registration.

An individual or business entity engaged in supplying goods or services within a particular state.

The overall value of goods or services sold by a business during a financial year, used for determining GST registration liability.

The rules and regulations related to Goods and Services Tax (GST) in India, which outline the procedures for registration, tax payment, and compliance requirements.

A person supplying goods or services under GST laws. If their aggregate turnover crosses the threshold limit, they must register under GST.

A situation where a supplier's turnover exceeds the threshold limit for mandatory GST registration, but they are still exempt from registration due to specific provisions or their nature of business. For example: Farmers supplying agricultural produce are frequently exempted.

A compulsory registration requirement under GST for businesses that make inter-state supplies of goods and services, even if their aggregate turnover is below the registration threshold.

The income a person earns from employment, like a salary or wages.

The income a person earns from renting out a property.

The income a person earns from providing professional advice or services.

The income a person earns from investing their money in fixed deposits, like savings accounts.

The income a person earns from transporting goods or people for a fee.