Check GST Eligibility
GST, or the Goods and Services Tax, is a consumption-based tax system that was implemented in India on 1st July 2017. It is an indirect tax that is levied on the supply of goods and services, and its objective is to create a uniform tax structure across the country. GST has replaced the previous system of multiple indirect taxes like excise duty, service tax, VAT, etc., making the tax system simpler and more efficient.
If you are a business owner in India, it is essential to understand whether you are eligible for GST registration. In this article, we will discuss the criteria for GST eligibility and the process of GST registration.
Check GST Eligibility Online Link
Criteria for GST Eligibility
There are various criteria for GST eligibility, and they differ based on the type of business. Here are some of the common criteria:
- Turnover Threshold
If your business has an annual turnover of more than Rs. 20 lakhs, you are required to register for GST. However, if your business operates in the North-Eastern states, the turnover threshold is Rs. 10 lakhs.
- Inter-state Supply
If your business supplies goods or services to customers in other states, you are required to register for GST, irrespective of your turnover. This is because GST is a destination-based tax, and the tax revenue goes to the state where the goods or services are consumed.
- E-commerce Operator
If you are an e-commerce operator who supplies goods or services through your platform, you are required to register for GST, irrespective of your turnover.
- Input Service Distributor
If your business has multiple branches and you want to distribute the input tax credit among them, you need to register as an Input Service Distributor (ISD) under GST.
- Casual Taxable Person
If you are not a regular taxpayer but occasionally supply goods or services in India, you can register as a casual taxable person. This registration is valid for 90 days and can be extended up to a maximum of 180 days.
- Non-Resident Taxable Person
If you are a non-resident who supplies goods or services in India, you can register as a non-resident taxable person. This registration is valid for the duration of your business in India or up to a maximum of six months.