Who Needs GST Registration?

Any person who carries any type of business at any place throughout India and who needs to register or registers under Goods and services tax Act is termed as a 'taxable person' under GST. A taxable person is the one who is engaged in any economic activity which may include trade and commerce. In this context, a person may include individuals, group of individuals, trust, government, local authority, co-operative society, artificial judicial person, corporation, HUF, firm, body corporate incorporated under foreign country laws, company, LLP, AOP/ BOI.

At loanbaba, find about taxable person types under GST, India

Who is Casual taxable person under GST?

A person will be treated as a Casual taxable person if he/ she supplies goods or services in a territory/ area/ state occasionally where GST is applicable, but as such there are no fixed places of business to that person. For example, if a person who has Delhi as place of business/supply, supplies taxable services to another state say Rajasthan where he doesn't have place of business will be treated as a casual taxable person in Rajasthan.

Who is Non Resident Taxable person under GST?

A person will be treated to be Non Resident Taxable person if an NRI occasionally supplies goods or services in a territory/ state where GST is applicable but actually she/he has no place fixed for business in India.

Who is an Input Service Distributor?

An 'Input Service Distributor' refers to an office of the supplier of the goods or services where invoices on receipt input services are received tax invoices are issued in order to distribute the credit of CGST/ SGST/ IGST which is paid on the services to branch with same PAN. Hence, credit can only be distributed on 'input services' and there is no point of it in capital and input goods. This facility is optional in nature and is a new concept for the assesses who are not registered as input service distributors currently.

GST registration by type of Taxable Person

Who needs GST registration and what is the type of taxable person? Find more below.

  • From the date of becoming liable for registration, one need to register within thirty days by the way of applying in each and every state he is liable for registration.
  • Non Resident and Casual persons need to apply at least 5 days prior to commencement of business
  • PAN is prerequisite for registration as the registration number in the GST is PAN based.
  • GST is state wise and hence one needs to obtain separate registration for each state concerned.
  • It is optional to register separately for each of the business vertical in the same state concerned.

Special registration for casual taxable person and non-resident taxable person (section 24)

Section 24 lays special provisions concerning to the registration of NR and casual taxable persons under GST. According to the section, such entities/ individuals/ persons need to apply for registration at least 5 days prior to the date of commencement of business. A casual or Non Resident taxable person can obtain a temporary registration which is valid for a period of 90 days and can be extended for further 90 days. Also, person registered under section 24 needs to make an advance deposit for GST which will be based on tax estimate.

Collecting GST

GST can be collected only by a registered taxable person and prominent indication of GST amount collected by him needs to be done by him on tax invoices.

GST Returns

Normally, a taxpayer needs to furnish three returns on monthly basis and one on annual basis. The returns are separate for persons registered under Input Service Distributor, composition scheme, person liable for deduction/ collection of tax (TDS/TCS).