{"id":62154,"date":"2024-02-19T14:49:44","date_gmt":"2024-02-19T09:19:44","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=62154"},"modified":"2024-03-30T14:39:44","modified_gmt":"2024-03-30T09:09:44","slug":"guide-for-types-of-gst-registration","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/","title":{"rendered":"A Comprehensive Guide on the Types of GST Registration"},"content":{"rendered":"\n<p>Currently, there are three prevailing types of GST registration in the country on the basis of administration Level- Central GST, State\/UT GST, and Integrated GST (Also known as IGST). <strong><a href=\"https:\/\/corpbiz.io\/gst-registration\" target=\"_blank\" rel=\"noreferrer noopener\">GST Registration<\/a><\/strong> is accompanied by a GSTIN Number or GST Identification Number. In order to claim GST input tax credit on inward supply, such as purchases, and to collect and pay GST on outward supplies, such as sales, the assesseneeds GSTIN. Since GST is a tax on a valid &nbsp;&#8220;supply&#8221; event, GST requires registration from all suppliers. Small companies operating in the states of Assam, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland, or Tripura, however, do not need to register if their total annual revenue is less than Rupees 20 lakh (10 lakh if they are located in one of these states). Small companies that have less than the qualifying limit in turnover may nevertheless choose to voluntarily register.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#Types_of_GST_Registration\" >Types of GST Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#Types_of_GST_Registration_on_the_basis_of_the_mandate_of_GST_Registration\" >Types of GST Registration on the basis of the mandate of GST Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#On_the_basis_of_Administration_Level\" >On the basis of Administration Level<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#Benefits_of_GST_Registration_in_India\" >Benefits of GST Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#Consequences_for_non-GST_Registration_in_India\" >Consequences for non-GST Registration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/guide-for-types-of-gst-registration\/#Frequently_Asked_Questions_FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_GST_Registration\"><\/span>Types of GST Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST Registration in India is segregated under various heads. Based on the event, supply and requirement, GST Registration is divided into three categories, they are \u2013<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_GST_Registration_on_the_basis_of_the_mandate_of_GST_Registration\"><\/span>Types of GST Registration on the basis of the mandate of GST Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The types of GST registration on the basis of the mandate of the GST registration are mentioned below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Compulsory Registration<\/h3>\n\n\n\n<p>Under certain circumstances, even if a valid transaction of sales, the dealer may be required to take Compulsory Registration under GST under certain circumstances. For instance, interstate sales of taxable commodities, online retailers, online sellers, etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Voluntary Registration<\/h3>\n\n\n\n<p>When a business is not required to compulsorily<strong> <a href=\"https:\/\/corpbiz.io\/online-gst-registration-in-uttar-pradesh\" target=\"_blank\" rel=\"noreferrer noopener\">register for GSTIN<\/a><\/strong> under the law still acquires a GST registration is known as voluntary registration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Registration under the Composition Scheme<\/h3>\n\n\n\n<p>The assessee must register under the GST composition scheme if the total turnover of the company is more than the prescribed threshold limit of Rs. 40 lacs (Rs. 20 lacs for special category states) for goods or Rs. 20 lacs (Rs. 10 lacs for special category states) but less than Rs. 1.5 Cr (Rs. 75 lacs for special category states). In the case of supply of services, the dealer may register under the Composition Scheme if the total turnover surpasses Rs. 20 lacs (Rs. 10 lacs for special category states) but falls below Rs. 50 lacs. The assessee is required to pay GST under this system at a predetermined rate based on it\u2019s turnover, and there is less compliance required than with a standard registration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. No Registration Required<\/h3>\n\n\n\n<p>An assesses is not required to have a GST Registration in the following circumstances \u2013<\/p>\n\n\n\n<ul>\n<li>The aggregate turnover of the business for which the registration sought does not exceed Rs. 40 lakhs (20 lakhs in certain states).<\/li>\n\n\n\n<li>The business is exempted f from the requirement of compulsory registration.<\/li>\n\n\n\n<li>Cultivators and farmers are not covered under the GST supply regime for crops produced from cultivated land.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"On_the_basis_of_Administration_Level\"><\/span>On the basis of Administration Level<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The types of GST registration on the basis of the administration level of the GST registration are mentioned below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. State Goods and Services Tax (SGST)\/ UT Goods and Services Tax (UTGST)<\/h3>\n\n\n\n<p>SGST refers to the tax payable on the valid supply of goods and services within a state or a Union Territory. It has replaced several taxes such as Octroi, Purchase tax, Value Added Tax (VAT), Cess, sales tax etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Central Goods and Services Tax (CGST)<\/h3>\n\n\n\n<p>CGST is the tax on the supply of goods and services across state borders. It has subsumed earlier taxes such as Customs and excise duty, Central Excise duty, Service Tax etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Integrated Goods and Services Tax (IGST)<\/h3>\n\n\n\n<p>IGST is applicable to the sale on supply of goods and services between one state and another.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_GST_Registration_in_India\"><\/span>Benefits of GST Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benefits of GST registration in India are mentioned below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Eliminates Cascading Effect of Tax<\/h3>\n\n\n\n<p>The most striking feature of GST registration in India is the comprehensive nature of GST, which aims to prevent the impact of cascading taxes. A tax on tax in which the tax responsibility was transmitted at each stage of the transaction is known as the cascading impact. The item&#8217;s price goes up as a result. Since the GST directly affects the price of products and services, the cascading effect is eliminated.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Streamlined and Transparent Process<\/h3>\n\n\n\n<p>Starting a business under the GST structure and selecting out of available Types of GST Registration has become more streamlined as you won\u2019t have to deal with different tax rules in different states. The centralized registration system of GST and Online registration Procedures cuts down on the time taken to establish a business as well as removes the high application fees that one has to pay. GST registration also makes it easier for businesses to carry out business transactions across state borders without having to deal with separate tax regulations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Prevents Tax Evasion and Promotes Tax Saving<\/h3>\n\n\n\n<p>The input credit is accessible to the receiver if the supplier includes the data in its return. This encourages the suppliers hence reducing&nbsp;tax evasion.&nbsp;Additionally, Online GST Registration Process enables individuals and businesses to claim <strong><a href=\"https:\/\/corpbiz.io\/learning\/how-to-use-input-tax-credit-for-the-payment-of-gst-demand\/\" target=\"_blank\" rel=\"noreferrer noopener\">input tax credit<\/a><\/strong> on any supply or purchases made in the course of business. GST Registration can provide effective tax planning and significant tax savings for the assessee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ease Compliances for Tax Payers<\/h3>\n\n\n\n<p>As compared to earlier tax regime, lesser returns and compliances are needed to be filed under GST. Only about eleven returns are filed under GST; four of these are basic filings that are filed under GST and are applicable to all ordinary taxable individuals. To report a list of sales invoices and accompanying documents for the tax period, the primary <strong><a href=\"https:\/\/corpbiz.io\/gst-return-filing\" target=\"_blank\" rel=\"noreferrer noopener\">GSTR-1<\/a><\/strong> is filed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Integration of E-Commerce Operators<\/h3>\n\n\n\n<p>Before GST, the supply and sale of goods through online medium or e-commerce were covered under the VAT rules, with no separate curriculum. E-Commerce platforms were required to file separate VAT declarations and were exempted from compulsory VAT Registration for the supply of goods and services. This led to preferential treatment in favour of certain big MNCs and E-commerce giants, as they were not required to abide by VAT compliances. Under GST, all of these inconsistent policies and perplexing requirements have been eliminated. Since these are applicable throughout India, GST has for the first time explicitly drawn out the general laws applying to the e-commerce sector in that country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_for_non-GST_Registration_in_India\"><\/span>Consequences for non-GST Registration in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case of non-payment of GST or undercutting tax regulations, the appropriate equivalent of 10% of the unpaid tax amount is assessed if a taxpayer either fails to pay the required tax or pays an amount less than what is determined. The minimum amount of penalty, cannot be less than Rs. 10,000\/-This penalty is in the case of computation or technical errors. In case of wilful default or evasion of GST, the assessee shall be liable to pay 100% of the due tax amount.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST registration in India is the most important revenue compliance to be followed by individuals and entities falling under a specific turnover range. Goods and Services Tax has been introduced to subsume and streamline the indirect tax and cess regime in India and helps to benefit small business owners and individuals.<\/p>\n\n\n\n<p>If you are looking to obtain a GST Registration for your business, fund or enterprise, you require a seasoned<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>1. <strong>Is GST Registration in India Mandatory for Businesses?<\/strong><\/strong> \u00a0<\/strong><p class=\"saswp-faq-answer-text\">Yes, GST Registration is mandatory for businesses and individuals operating in India.<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>2. <strong>Which entities are eligible for GST registration in India?<\/strong><\/strong><\/strong><p class=\"saswp-faq-answer-text\">Sellers and suppliers of Goods and Services having an annual turnover of Rs. 20 lakhs, whereas for service providers the same is applicable to businesses having an annual turnover of Rs. 40 crore.<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>3. What is the Validity of a GST Registration?<\/strong><\/strong><p class=\"saswp-faq-answer-text\">There is no validity of a GST registration. Once A GST registration is granted by eh regulatory authorities, it remains valid indefinitely, until suspended or cancelled by the CBIC.<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>4. Based on the Administration Level, how many types of GST Registrations are there?<\/strong><\/strong><p class=\"saswp-faq-answer-text\">Based on the Administration Level, there are three categories of GST Registrations \u2013 Central GST (CGST), State\/UT GST (SGST or UTGST) or Integrated GST (IGST) registration.<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>5. Can a person obtain multiple GST registrations in one State?<\/strong><\/strong><p class=\"saswp-faq-answer-text\">Yes, in accordance with Section 25(2), an individual who operates more than one place of business in a State or UT may apply for a separate registration for each location in a state.<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>6. Which of the existing taxes have been subsumed under the GST?<\/strong><\/strong><p class=\"saswp-faq-answer-text\">The following taxes have been subsumed within the GST &#8211; Central Excise duty, Service Tax, Value Added Tax (VAT), State VAT, Purchase Tax, Luxury Tax, Central Sales Tax, Octroi and Entry taxes etc.<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>7. What are the 4 types of GST registration?<\/strong><\/strong><p class=\"saswp-faq-answer-text\">GST has been divided into 4 types of GST registration, based on the level of administration and implementation. They are the Central Goods and Services Tax (CGST), State \/UT Goods and Services Tax (SGST or UTGST), and Integrated Goods and Services Tax (IGST).<\/p><li style=\"list-style-type: none\"><strong class=\"saswp-faq-question-title\"><strong>8. Who needs GST registration?<\/strong><\/strong><p class=\"saswp-faq-answer-text\">All businesses that have revenue exceeding the threshold of Rs. 40 lakh, Rs. 20 lakhs, or Rs. 10 lakhs, depending on the situation, are required to register as regular taxable persons under the Goods and Services Tax (GST).<\/p><\/ul><\/div>\n\n\n<p><strong>Read Our Article<\/strong>: <mark><a href=\"https:\/\/enterslice.com\/learning\/gst-registration-requirement\/\">GST Registration Requirements<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Currently, there are three prevailing types of GST registration in the country on the basis of administration Level- Central GST, State\/UT GST, and Integrated GST (Also known as IGST). GST Registration is accompanied by a GSTIN Number or GST Identification Number. In order to claim GST input tax credit on inward supply, such as purchases, [&hellip;]<\/p>\n","protected":false},"author":85,"featured_media":62175,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3467],"tags":[4003],"acf":{"service_id":"334"},"authorName":"Shuchi Saxena","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/suchi.png","authorDescription":"Shuchi Saxena is an experienced business advisor with 10+ years of experience in management consulting. Maintaining a creative flow while writing content comes naturally to her. 99.2% of her writeups are problem-solving and help readers get what they intend to look out for. Her expertise lies in Startup Advisory, Regulations, Consulting, Environmental Advisory, etc.","postViews":1776,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/62154"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/85"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=62154"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/62154\/revisions"}],"predecessor-version":[{"id":62258,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/62154\/revisions\/62258"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/62175"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=62154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=62154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=62154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}