The types of registration under GST cater to diverse business needs, thus ensuring compliance with the GST regime. With GST collections reaching ₹2.10 lakh crore in April 2024, understanding these registrations is crucial for businesses. Let’s see some of the types in detail.
Regular Registration:
This applies to businesses whose aggregate turnover exceeds the prescribed threshold limits. For most states, the limit is ₹40 lakhs for goods and ₹20 lakhs for services. In special category states like Jammu & Kashmir, Himachal Pradesh, and Uttarakhand, the limit is ₹10 lakhs for goods and services. This is suitable for businesses engaged in regular interstate or intrastate transactions. Key features include:
- Eligibility: Businesses exceeding the turnover threshold.
- Tax Filing: Monthly returns (GSTR-1 and GSTR-3B).
- Input Tax Credit (ITC): Available on purchases.
- Interstate Transactions: Permitted.
Composition Scheme Registration:
The Composition Scheme is designed for small businesses with a turnover up to ₹1.5 crore (₹75 lakhs for special category states). It also offers a simplified tax structure with reduced compliance requirements. This scheme is thus ideal for small traders and manufacturers looking for ease in tax compliance. Key features include:
- Eligibility: Small businesses with turnover below the specified limit.
- Tax Rate: Fixed percentage based on turnover.
- Tax Filing: Quarterly returns (GSTR-4).
- ITC: Not available.
- Interstate Transactions: Not permitted.
Casual Taxable Person Registration:
A Casual Taxable Person (CTP) is someone who occasionally undertakes taxable activities in a taxable territory where they do not have a fixed place of business. This registration is suitable for businesses participating in events, exhibitions, or temporary establishments. Key features include:
- Eligibility: Businesses with occasional taxable activities.
- Tax Filing: Periodic returns during the period of activity.
- ITC: Available on purchases.
- Security Deposit: Required based on estimated tax liability.
Non-Resident Taxable Person Registration:
Non-Resident Taxable Persons (NRTP) are foreign businesses that supply goods or services in India but do not have a fixed place of business. This registration type is essential for foreign businesses entering the Indian market. Key features include:
- Eligibility: Foreign entities supplying goods or services in India.
- Tax Filing: Periodic returns during the period of activity.
- ITC: Available on imports.
- Security Deposit: Required based on estimated tax liability.
Input Service Distributor (ISD) Registration:
Input Service Distributor registration is for businesses that have multiple branches or units and also wish to distribute the input tax credit of GST paid on services to these branches. ISD registration also helps in the efficient distribution of ITC among various branches. Key features include:
- Eligibility: Businesses with multiple branches or units.
- Tax Filing: Monthly returns (GSTR-6).
- ITC Distribution: Also Based on the turnover of each branch.
TDS and TCS Registration:
Certain entities are also required to deduct or collect tax at source under GST. TDS and TCS registration also ensures compliance with tax deduction and collection requirements. Key features include:
- Eligibility: Government departments, local authorities, and also specified persons.
- Tax Filing: Monthly returns (GSTR-7 for TDS and GSTR-8 for TCS).
- ITC: Also Available to the deductee or collectee.
E-Commerce Operator Registration:
E-commerce operators facilitating the supply of goods or services through their platforms are also required to register under GST. This registration ensures that e-commerce operators also comply with GST laws. Key features include:
- Eligibility: E-commerce platforms like Amazon, Flipkart, etc.
- Tax Filing: Monthly returns (GSTR-8).
- Tax Collection at Source (TCS): Also Applicable.
Conclusion:
Understanding the types of registration under GST thus ensures seamless tax compliance and business growth. Choosing the right type of GST registration is thus crucial for businesses to ensure compliance and avail the benefits. Regular businesses, small traders, foreign entities, and e-commerce operators also each have specific registration types according to their needs. Ready to register? Explore more GST insights now!
– Ketaki Dandekar (Team Arthology)
Raed more about Types of Registration under GST here – https://groww.in/gst-registration