Goods and Services Tax (GST) was introduced in July 2017 as a measure to unify various indirect tax laws into one. Any person involved in a sale, transfer, exchange, barter, license, rental, lease or disposal of any goods or services for some consideration in the course or furtherance of a business is said to have made Taxable Supply and will be liable to collect GST.
Any person who has made any taxable supply is subject to register under GST in the state where he sells such goods and services. The supplier shall be liable to register within 30 days from the day he becomes liable to register as per the following conditions:
The supplier shall have to register if his or her turnover for the financial year exceeds the below mentioned thresholds:
| Turnover Limit | Type of Supply | Supplier Registration State |
|---|---|---|
| 10 Lacs | Services | Manipur, Mizoram, Nagaland and Tripura |
| 20 Lacs | Goods | Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand |
| 40 Lacs | Goods & Services | Others |
Certain other categories of suppliers who are required to register under GST:
- Inter-state supply (Purchase and sale of goods in more than one state of India)
- Recipient of services wherein GST is chargeable on reverse charge basis
- Casual taxable persons/ Non residents not having fixed place of business
- A person who supplies on behalf of some other taxable person
- E-commerce operator
- Suppliers mandated to deduct GST TDS
- Input Service Distributor
- Those supplying online information and data base access or retrieval services from outside India to a non-registered person in India
State of Registration
The supplier will have to obtain unique registration in each state in which he sells/operates. He can also
obtain different registration number for different business verticals within same state.
Consequences for Non-Registration
If a supplier who is compulsorily required to register under GST fails to do so, then he may attract
some/all of the following penalties:
- A penalty of Rs. 10,000 or tax invaded – whichever is higher
- Input Tax Credit (ITC) cannot be claimed/ transferred
- Detention of Goods/Vehicles
- Confiscation of Goods/Vehicles
Documents Required
- PAN Card
- Proof of business registration
- Address proof
- Bank Statements
(However, the list may vary depending upon the constitution of supplier and place of business)