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GST Registration Types: For Indian Taxpayers

The several types of GST registration for Indian taxpayers is crucial to understand if you are attempting to register as a new taxpayer.

Before registering as a new Taxpayer, you must first determine which type of Taxpayer you will be.

Furthermore, you must be aware of the types and categories of your business in order to complete a GST registration that is beneficial to both your business and yourself.

So, in order to establish and grow your business, you must first understand the various types of GST Registration.

What types of GST registration are there?

  • Normal Taxpayers
  • Composition
  • Taxable Person on the Side
  • Distributor of Input Services
  • Taxable Person Who Isn’t a Resident
  • Distributor of Online Services to Non-Residents

Normal Taxpayers

Registration is essential after the threshold limit of Rs 20 lacs in special category states and Rs 40 lacs in normal category states is exceeded.

A registered person with an annual turnover of less than 75 lakh rupees in the previous financial year.

Other than the restaurant industry, the taxpayers who work in the service business. Regular scheme taxpayers are required to file returns on a monthly basis.

Regular taxpayers can claim GST paid on goods or services, or both, as an input tax credit.

Composition Scheme

The GST composition plan is a simple and straightforward scheme for taxpayers.

Small taxpayers can avoid time-consuming GST paperwork by paying GST at a predetermined rate of turnover. Any taxpayer with a turnover of less than Rs. 1.5 crore can participate in this scheme.

The benefits of enrolling under the composition system are as follows:

  • Compliance is lower (returns, maintaining books of record, issuance of invoices)
  • Tax liability is limited.
  • Because taxes are lower, there is more liquidity.

Taxable Person on the Side

Any person who supplies goods and/or services on a sporadic basis in a territory where GST is levied but does not have a regular place of business. As per GST, such a person must be treated as a casual taxable person.

Distributor of Input Services

Input Service Distributor refers to an office of a goods/services supplier that receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the CGST/SGST/IGST credit paid on the said services to your branch with the same PAN.

As a result, only credit for input services, not input products or capital goods, can be distributed.

For assessees who are not currently registered as input service distributors, this will be a novel notion. This feature, however, is purely optional.

Taxable Person Who Isn’t a Resident

Services such as advertising on the internet, cloud services, e-books, downloading movies, software, and online supply of digital content are examples of online information and database access or retrieval services supplied by Information Technology over the internet or electronic network.

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

As a result, acquiring Registration by such overseas service providers is required in order for them to provide OIDAR services to unregistered persons in India.

Single Registration will be valid for PAN India for Non-Resident Online Service Providers.

Non-Resident Online Service Providers must appoint an Authorized Signatory (Indian) with a valid PAN in India. On behalf of such Non-Resident Online Service Providers, that Authorised Person must apply for registration through the GST portal.

Suggested Read: GST Filing



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