If you want to start your business or are doing any business, then the biggest confusion is whether you have to get GST registration for your business compulsory or not and what are the compliances and formalities related to GST it occurs.
Goods and Service Tax is paid to the government by collecting tax from the customer on selling the goods or providing any service. If there is a full year turnover, then do we need to take GST or not, then what is the criteria to decide it.
On which basis it is decided that which person is required to take GST and who is not required to take it, then basically there are two criteria to decide it. On the basis of this it is decided whether you need to take GST number for your business or not.
The first criterion is turnover based ie there is a limit. If you sell more than that limit, then you will be compulsorily charged GST and the second point has nothing to do with the turnover.GST Registration
If you have been given some condition in section 24 of the GST Act. Even if you fulfill any of those conditions, it becomes compulsory for you to take GST registration, then know that both of them first look at the point of turnover. Turnover limit given for compulsory, GST registration
If your turnover crosses that limit, then it becomes compulsory for you to register under GST. Now there is a separate limit for goods. There is a separate limit for services.
If you sell any taxable goods or provide any taxable service, then if its limit is crossed. If you sell any goods in case of goods more than ₹ 40 lakhs. Within a year, if your turnover limit exceeds ₹ 40 lakh, GST Registration
then it becomes compulsory for you to get GST registration done and talk about the service there, if you provide any kind of service, do not sell any goods, then that limit if If you are providing taxable service, even if its limit crosses ₹ 20 lakh, it becomes compulsory for you to get GST registration done.
Now there are some states, including North East and Uttarakhand, the limit there is kept or complete etc. That is, there is a limit of 20 lakhs for goods and ₹ 10 lakhs for services.
If they cross the limit, then it will also become compulsory for them to get GST registration done. So the limit is different for North East.
There is a limit of 40lakh for goods and 20lakh for service for all the status of North East including Uttarakhand and other states also.
Now it comes that you also sell goods as well as provide service. If your business is of this type in which both types of activity are involved, then you need to get GST registration done. GST Registration
The limit is that services will be considered. That is, a limit of ₹ 20 lakh will be considered for you. That is, if your turnover exceeds ₹ 20 lakh, then registration in GST will be compulsory. Whereas for Northeast this limit will be ₹ 10 lakh.
The states of North East such as Pondicherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh and Uttarakhand can be seen.
This is a basic point that everyone will tell you, but if you have heard one point carefully, then I would have said that only if you provide taxable goods or taxable service, the limit will be checked.
That is, if you deal in a product on which GST will not be applicable or it is exampt for GST, then you do not have to check the turnover limit at that point.
If your goods are not covered in GST, then you do not need to get GST done for whatever your turnover is. It means that suppose you sell petrol, you have a petrol pump. GST Registration
There you sell petrol. In that case your turnover exceeds ₹ 1 crore, then you do not need to get GST registration done. Since petrol is not covered under the GST Act, there are separate taxes on it, but along with petrol, that person sells another product which is covered in GST, then GST will not be applicable on petrol. .
But if GST is applicable on the product which he is selling together, then GST will definitely be levied on him and the turnover limit of that product is seen if he sells only ₹ 1 lakh in a whole year,
then the turnover limit for that You have to look at the total turnover to see how it will be calculated which is the limit of 40lakh. That is, how much are you selling non-GST products and how much are you selling GST products.
You have to check the complete total turnover. That is, if you or 1crore sales are being done from petrol, then if your limit of 40 lakhs is crossed, then it will be compulsory for you to get GST registration done.GST Registration
At the same time, you do not need to pay GST on petrol, but on other products on which GST is applicable, you will have to pay GST by charging it from the customer.
That is, those who have petrol pumps, it is not that they keep only petrol at petrol pumps only. If they keep support lubricant engine oil along with it, then GST is applicable on them, then in such cases they also have to pay GST.
That is, you do not mean anything by taxable turnover. At the time of checking the limit, if your total turnover of ₹ 40 lakhs exceeds, then it will be compulsory for you to get GST registration done.
But if you deal only in such products where none of your GST is applicable, then in that case you do not need to get any GST registration done.
This has become a matter of limit, apart from this, the government keeps on making some changes from time to time. GST Registration
As there was a change just a few days ago, any person involved in manufacturing and trading of bricks, that is, anyone who does the work of making bricks or selling bricks, then according to that the limit they will give now is ₹ 40 lakhs.
There should have been a limit, but the government has changed this rule just a few days ago and its limit has been changed to ₹ 20 lakh, that is, any person is involved in such business, that is, manufacturing, ie brick making or brick selling work.
So there is a limit of 20 lakh for him, if his business does a turnover of more than ₹ 20 lakh, then it will also be compulsory to take GST registration, then from time to time the government can also make some changes, then some changes can be applicable in addition to this.