Taxable Person under GST, Who is Liable to get Registered in GST?
Section 2(107) taxable person means: A person who is registered or liable to be registered under section 22 (i.e. registration required if turnover exceed threshold limit and so on) or section 24 (i.e. Compulsory registration under GST). A ‘taxable person’ under GST, is a person who carries on any business at any place in India and who is registered or required to be registered under the GST Act. Any person who engages in economic activity including trade and commerce is treated as taxable person.
‘Person’ here includes individuals, HUF, company, firm, LLP, an AOP/BOI, any corporation or Government company, body corporate incorporated under laws of foreign country, co-operative society, local authority, government, trust, artificial juridical person.
Who is Liable to get Registered under GST?
Any business whose turnover in a financial year exceeds Rs 40 lakhs (Rs 20 lakhs for North Eastern and hill states). GST registration is mandatory for-
[Note: If your turnover is supply of only exempted goods/services which are exempt under GST, this clause does not apply.]
- Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too.
- When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.
- Anyone who drives inter-state supply of goods
- Casual taxable person (see below)
- Non-Resident taxable person (see below)
- Agents of a supplier
- Those paying tax under the reverse charge mechanism
- Input service distributor (see below)
- E-commerce operator or aggregator*
- Person who supplies via e-commerce aggregator
- 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
32nd GST Council Meeting – 10 January 2019
Effective April 1, 2019 the GST exemption threshold has been raised from Rs 20 lakh to Rs 40 lakh. For hilly states and those in the North East, the threshold has been doubled to Rs 20 lakh.
The existing Composition Scheme turnover threshold raised to Rs 1.5 crore. Those who use the scheme from April 1, 2019
As per 23rd GST Council Meet on 10th November 2017
Service providers providing services on e-commerce platforms are exempted from registration if their annual turnover is below 20lakhs (10 lakhs for Special states. 20 lakhs for J&K)
**e-commerce sellers/aggregators need not register if total sales is less than Rs. 20 lakh. Notification No. 65/2017 – Central Tax dated 15.11.2017
As per 22nd GST Council meeting of 6th October 2017
Service providers providing inter-state services are exempted from registration if their annual turnover is below 20lakhs (10 lakhs for Special states. 20 lakhs for J&K)
Notification No. 7/2017 – Integrated Tax dated 14th September 2017
Job workers making inter-state supply of services to a registered person are exempted from registration if their turnover is below 20lakhs (10 lakhs for Special states)
Who is a Casual Taxable Person under GST?
Section 2(20) of Central Goods & Services Tax Act, 2017 defines “casual taxable person” as a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. Thus, a casual taxable person is someone who has a business in a different state, but comes to a different state for a business purpose temporarily
In Simple Language A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a casual taxable person as per GST.
For example, a footwear dealer registered in Agra comes for an exhibition at Azad Maidan, Mumbai for participating in the exhibition, then such person would need to register as a casual taxable person at Mumbai and he will be granted registration for a maximum period of 90 days.
Who is a Non-Resident Taxable person under GST?
Section 2(77) of Central Goods & Services Tax Act, 2017 defines “non-resident taxable person” as any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India. Hence, a nonresident taxable person is someone who has a business outside India, but comes to a different state for a business purpose temporarily.
For example, a person from Paris, comes to participate in an exhibition at Azad Maidan, Mumbai for participating in the exhibition, then such person would need to register as a non-resident taxable person at Mumbai and he will be granted registration for a maximum period of 90 days.
Who is an Input Service Distributor?
A company may have a number of units and the GST paid by it on input services received can be distributed to the beneficiary units on the basis of their previous year turnover. The office of the company which distributes the credit is called input service distributor.
Section 2(61): “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under Section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office
GST Registration by Type of Taxable Person
- Every person has to apply for registration in every State in which he is liable, within thirty days from the date on which he becomes liable to registration.
- Casual/ non-residents should apply at least five days before their commencement of business.
- Registration number in GST will be PAN based and hence, having PAN would be a prerequisite for obtaining registration.
- The assessee must obtain separate registration for each State, as registration under GST will be State-wise,
- The assessee has an option to obtain a separate registration for each of the ‘business vertical’ in the same State.
Special registration for casual taxable person and non-resident taxable person (section 24)
A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Section 24 provides for special provisions relating to casual taxable person and non-resident under GST.
Casual/non-resident taxable person may obtain a temporary registration for a period of 90 days (extendable for additional 90 days).
A person who obtains registration u/s 24, will be required to make advance deposit of GST (based on his estimated tax liability).
Only a registered taxable person can collect GST. The taxable person must prominently indicate the GST amount on tax invoices.