Types of GST Registration: For Taxpayers in India

GST REGISTRATION

Types of GST Registration for Indian Taxpayers is very important to know if You are trying to register yourself as a new Taxpayer. Then before registering yourself as a new Taxpayer, you should know your Taxpayer type to choose for registration. And You need to know the types and categories of your business for perfect GST registration which is better for your business and for you.

So now you need to know the definition, eligibility, and types of GST Registration to start and grow up your business.

What is GST registration?

GST registration is the process by which a taxpayer gets registered under Goods and Service Tax (GST) in the different types of GST registration as per their requirement. Once the registration process has been completed, the Goods and Service Tax Identification Number (GSTIN) is provided. The 15-digit GSTIN is provided by the Central Government and helps to determine whether a business is liable to pay GST.

Who is eligible for different types of GST registration?

GST Registration must be completed by the following individuals and businesses-

  1. Individuals who registered under the tax services before the GST law came into effect.
  2. Non-Resident Taxable Person and Casual Taxable Person
  3. Individuals who pay tax under the reverse charge mechanism
  4. All e-commerce aggregators
  5. Businesses that have a turnover that exceeds Rs.40 lakh. In the case of special category states Rs. 20 lakh.
  6. Input service distributors and agents of a supplier
  7. Individuals who supply goods through an e-commerce aggregator.
  8. Individuals providing database access and online information from outside India to people who live in India other than those who are registered taxable persons.

What are the benefits of GST registration?

There are many benefits of GST registration-some are given below-

  1. Goods can be sold online and offline without fear.
  2. Goods can be sold across the country.
  3. No issue in transportation of goods.
  4. GST registration acts as valid proof as it is a legal entity registration.
  5. Input tax credit can be availed when any goods or services are being purchased.
  6. With the help of a GSTIN, a current bank account can be opened.
  7. The GSTIN helps in increasing the brand value of the business.
  8. Big projects can be accepted from Multinational Corporations (MNCs)

What are the types of GST Registration?

These are the types of GST registration for which anyone can apply-

  1. Normal Taxpayer
  2. Composition
  3. Casual Taxable Person
  4. Input Service Distributor (ISD)
  5. Non-Resident Taxable Person
  6. Non-Resident Online Service Distributor
  7. Embassy/UN Body/ Other Notified Persons
  8. Special Economic Zone (SEZ) Developer/ Unit
  9. Tax Deductor at Source (TDS) /Tax Collector at Source (TCS)

Normal Taxpayer

Once the Threshold limit of Rs 20 Lac in case of special category states) and 40 lacs in case of Normal category states crosses registration is required.

A Registered Person, whose aggregate turnover in the preceding financial year did not exceed Seventy-Five Lakh Rupees.

The taxpayers are related to the Service industry other than the restaurant sector. The taxpayers registered under the regular scheme have to file returns monthly. Currently, GSTR 3B and GSTR 1 are required to be filed.

Regular taxpayers can avail of an input tax credit of GST paid on the purchase of goods or services or both.

Composition Scheme

The Composition Scheme is a simple and easy scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover. This scheme can be opted for by any taxpayer whose turnover is less than Rs. 1.5 crore.

The following are the advantages of registering under the composition scheme:

  • Lesser compliance (returns, maintaining books of record, issuance of invoices)
  • Limited tax liability
  • High liquidity as taxes are at a lower rate

Casual Taxable Person

Any 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 have to treat as a casual taxable person as per GST.

For example, A person who has a place of business in Bangalore and supplies taxable consulting services in Pune where he has no place of business would be treated as a casual taxable person in Pune.

Input Service Distributor

Input Service Distributor means an office of the supplier of goods/services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST/SGST/IGST paid on the said services to your branch with the same PAN. (It must be a supplier of taxable goods /services having the same PAN as that of the office referred to above).

Thus, only credit on ‘input services can be distributed and not on input goods or capital goods.

This will be a new concept for assessees who are currently not registered as input service distributors. However, this facility is optional in nature.

Non-Resident Taxable Person

When a non-resident occasionally supplies goods/services in a territory where GST applies but does not have a fixed place of business in India.

As per GST, he will be treated as a non-resident taxable person.

It is similar to the above except the non-resident has no place of business in India.

Non-Resident Online Service Distributor

Online information and database access or retrieval services mean services provided by the means of Information Technology, over the internet or electronic network such as advertising on the internet, cloud services, e-books, downloading movies, software, online supplies of digital content (movies, t.v shows, music, data storage, gaming, etc.

Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than the registered person (hereinafter referred to as Non-Resident Online Services Provider), is required to register in GST as a provider of OIDAR Services.  

other than the registered person (hereinafter referred to as Non-Resident Online Services Provider), is required to register in GST as a provider of OIDAR Services.  

So, for the provision of OIDAR Services by such foreign service providers to the unregistered persons in India, obtaining Registration by such foreign service providers is mandatory.

In the case of Non-Resident Online Service Providers, Single Registration will be valid for PAN India.

For all such persons, the processing of registration and subsequent action will be done centrally at the Office of Principal Commissioner of Central Tax, Bengaluru West.

Such Non-Resident Online Service Providers need to appoint an Authorised Signatory (Indian) in India possessing a valid PAN. That Authorised person shall apply for registration at the GST portal on behalf of such Non-Resident Online Service Providers. 

Embassy/UN Body/ Other Notified Persons

UIN stands for Unique Identity Number, granted to UN Bodies and Embassies on the basis of the letter issued by the Ministry of External Affairs (MEA).

A UIN can also be granted to any other Notified Persons (as may be notified by the Commissioner) on the basis of a request received from the respective notified organization.

UIN enables the UN Bodies, Embassies, and Other Notified Persons to get the supplies of taxable goods /services from the registered persons.

The relevance of UIN is that it needs to be mentioned on purchase invoices so that the UIN holder could claim a refund of GST paid on such transactions on the basis of Form RFD -10, which is generated after their filing Statement of such inward supplies in Form GSTR-11.

You can apply for registration as UN Bodies/ Embassies/Other Notified Person for allotment of UIN directly on the GST Portal. Navigate to Services > Registration > New Registration option.

Select the New Registration option and United Nation Body/ Consulate or Embassy of Foreign Country/ Other Notified Person from I am a drop-down list.

UN Bodies/ Embassies/Other Notified Person must fulfill the following conditions so that they can file an application for allotment of UIN on the GST Portal:

1. The applicant is not already registered in the State i.e. he does not have UIN for this entity in that State.

Note: UN Bodies/ Embassies are not required to take state-wise registration but one single registration is enough for them for the whole of India. Other Notified Person is required to take state-wise registration.

2. Applicant has a valid Indian mobile number

3. Applicant has a valid E-mail Address

4. The applicant has the prescribed documents and information on all mandatory fields as required for registration

5. Applicant has an authorized signatory with valid details.

Special Economic Zone (SEZ) Developer/ Unit

SEZ developers and SEZ Units are required to be registered a-fresh in the GST regime.

You need to apply for new registration, as a separate business vertical under GST.

And You need to select SEZ Unit or SEZ developer in the “reason to obtain registration” in the Business Detail tab. You are required to upload the necessary certificate/documents issued by the Government of India, as proof of you being SEZ unit or Developer in the “principal place of business” tab, to substantiate your claim.

In case you had selected SEZ as one of the Business Activities in the Enrolment Form, your Primary Authorized signatory should have received an email seeking your input for identifying the GSTIN as SEZ Unit or Developer. In case, you have not received such an email from GST system ID or missed to select SEZ as Business Activity, you may approach the Jurisdictional Tax Authority, who in turn may raise a request to the GST system for making this change.

And in case, you have not received such an email from GST system ID or missed selecting SEZ as Business Activity, you may approach the Jurisdictional Tax Authority, who in turn may raise a request to the GST system for making this change.

In case, you have not received such an email from GST system ID or missed to select SEZ as Business Activity, you may approach the Jurisdictional Tax Authority, who in turn may raise a request to the GST system for making this change.

Tax Deductor at Source (TDS) /Tax Collector at Source (TCS)

TDS stands for Tax Deducted at Source (TDS). All Department or establishment of Centre / State Government, Local Authority, Government Agencies & Persons or category of persons notified by Central / State Government Governments, making contractual payments in excess of INR 2.5 Lakhs to suppliers need to register as a TDS under GST.

In the GST regime, while making such payment in excess of INR 2.5 Lakhs, the concerned Department or establishment of Centre / State Government, Local Authority, Government Agencies & Persons or category of persons notified by Central / State Government Governments needs to deduct 1% under CGST Act and 1% under SGST Act;

In case of inter-state transactions, 2% (under the IGST Act) of the total payable amount and remit it into the appropriate GST account. The credit for such GST payments will be given to the suppliers.

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly themselves.

In the GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.

Any person who wishes to get registered as the Tax Deductor/Tax Collector needs to apply in the form prescribed.

The preconditions are:

1. Applicant has valid PAN or TAN.

2. Applicant must have a valid mobile number.

3. Applicant must have a valid E-mail ID.

4. Applicant must have the prescribed documents and information on all mandatory fields as required for registration.

5. Applicant must have a place of business.

6. Applicant must have an authorized signatory with valid details.

Finally, you should read all types of GST Registration before applying for GST registration.

What are the steps for different types of GST registration?

The simple step-by-step process that individuals must follow to complete different types of GST Registration is mentioned above:

Step 1: First of all, Visit the GST portal – https://www.gst.gov.in

Step 2: Then click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab

Step 3: Now select ‘New Registration’.

Step 4: Fill the below-mentioned details:

  1. Under the ‘I am a’ drop-down menu, select ‘Taxpayer’.
  2. Select the respective state and district.
  3. Then enter the name of the business.
  4. Then enter the PAN of the business.
  5. After that enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
  6. Enter the image that is shown on the screen and click on ‘Proceed’.

Step 5: On the next page, enter the OTP that was sent to the email ID and mobile number in the respective boxes.

Step 6: Once the details have been entered, click on ‘Proceed’.

Step 7: You will be shown the Temporary Reference Number (TRN) on the screen. Make a note of the TRN.

Step 8: Then visit the GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.

Step 9: Now select ‘Temporary Reference Number (TRN)’.

Step 10: Then enter the TRN and the captcha details.

Step 11: And click on ‘Proceed’.

Step 12: After proceed, You will receive an OTP on your email ID and registered mobile number. Enter the OTP on the next page and click on ‘Proceed’.

Step 13: The status of your application will be available on the next page. On the right side, there will be an Edit icon, click on it.

Step 14: There will be 10 sections on the next page. All the relevant details must be filled, and the necessary documents must be submitted. The list of documents that must be uploaded are mentioned below:

  1. Photographs
  2. Business address proof
  3. Bank details such as account number, bank name, bank branch, and IFSC code.
  4. Authorisation form
  5. The constitution of the taxpayer.

Step 15: Then visit the ‘Verification’ page and check the declaration, Then submit the application by using one of the below mentioned methods:

  1. By Electronic Verification Code (EVC). The code will be sent to the registered mobile number.
  2. By e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.
  3. In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).

Step 16: Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.

Step 17: Finally, You can check the status of the ARN on the GST portal. Within 7 days if all documents are verified and found ok then you will get a GST registration Number.

Further Faqs on types of GST registration

  1. What is the fee for a GST Registration?

    Still, there is no fee charged by the government for GST registration. However, a professional fee may be charged if services of a GST Practitioner or a Chartered Accountant are used for GST Registration.

  2. Which documents are required for GST registration?

    1. PAN card
    2. Aadhaar card
    3. Business address proof
    4. Bank account statement and canceled cheque
    5. Incorporation Certificate or the business registration proof
    6. Digital Signature
    7. Director’s or Promoter’s ID proof, address proof, and photographs
    8. Letter of Authorisation or Board Resolution from Authorised Signatory

  3. Can I surrender my GST number?

    Yes, you can surrender the GST number. However, you can do so only after one year from the date of registration. if you are no longer in your business or don’t want to carry on your business.

  4. What is Aggregate Turnover under GST?

    Aggregate Turnover means the total value of sales made by a business registered under the same PAN. Sales include the aggregate of the following:
    Taxable sales
    Exempt sales
    Exports
    Aggregate turnover excludes:
    Value of tax on sales
    Value of purchases on which tax is paid under RCM (reverse charge mechanism)

  5. Is a bank account mandatory for GST registration?

    No, bank accounts are not mandatory at the time of GST registration. but after getting registered, you will have to add your bank account and details.

  6. What are the special category states under GST?

    Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand following are the special category states under GST to which the threshold limit for registration is lesser.

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