What types of Businesses are required to register under GST in India?

Goods and Service Tax or GST is a key area to be focused on by the business entities operating in India. However, various policies, standards, and regulations are defined under the GST law regarding its requirements and exemptions. Hence, being a business owner or entrepreneur, you must know such GST norms and laws in India. For instance, if you are operating your business in Mumbai, you can partner with a leading CA firm. A leading CA firm can help you get your GST Registration in Mumbai. 

Sec 2(17) of the Central GST Act defines that any transaction or trade involving goods and services exchanges with or without the intention of earning money is business. So any entity operating across India to do business is required to get registered under the GST. However, at the individual business entity level, several differences impact the decision to GST registration. Accordingly, key exemptions and policy details have been introduced. 

As per GST rules, a basic exemption has been made based on region. Businesses operating in Hilly and northeastern states must register for GST if annual turnover exceeds 20 lakhs. On the other hand, the rest of the states are exempted up to a turnover of 40 lakhs. But in case, you exchange goods or services across states you need a GST registration regardless of turnover. It is also applicable if your business deals in special category goods and services. 

The defined hill and Northeastern states include: 

Uttarakhand, Jammu & Kashmir, Himachal Pradesh. Arunachal Pradesh, Meghalaya, Sikkim, Nagaland, Tripura, Mizoram, Manipur, and Assam. 

Apart from these there also exists several goods and service category that has been exempted from GST registration. Such include certain chemicals, essential food products, medicines, medicinal instruments, and raw materials. Further, the services that are essential or delivered with national or social benefits are exempted from GST. Such include services related to agriculture, government services, services by RBI, library services, and religious services. 

The above-defined exempted goods and services are as per the last GST committee meeting. Such can further be transformed or changed considering the situational or industrial needs. 

Why you must have a GST Registration?

Based on the above details it can be reflected that in certain cases GST needs have been exempted. But to ensure smooth and lawful business operations, you must get a GST registration. Having a GST registration can help your business to conduct business within the state and inter-state. Also, ensures keeping a proper record of business transactions which can further be utilized for better decision-making. 

You can further interact with a leading CA Firm to learn more about GST return filings and claiming refunds. For start-ups and small businesses, GST also helps improve business credibility and further helps in the expansion process. Hence, to ease the process, the GST committee has also introduced a composition scheme. It allows charging a flat tax rate on their transactions, hence eliminating the need to record every single transaction for small businesses. 

Wrapping Up 

It can be concluded that irrespective of the type of business you are operating, you must get the GST Registration. A leading CA firm can help you get more information about the process and documents required. Post-registration, you can effectively file for GST and can also claim refunds and exemptions (if applicable) in a well-processed manner.