Eligibility for GST Registration

GST registration is required for businesses that meet certain criteria as defined under the GST law. To be eligible for GST registration, businesses must fulfill the following conditions:

1. Business Type – Supplier Definition

Your business must qualify as a "supplier" under the GST Act, meaning it is involved in the supply of goods or services.

2. Turnover Threshold

A business must register for GST if its annual turnover exceeds the prescribed limit:

  • ₹40 lakh: For most states (supply of goods)

  • ₹20 lakh: For service providers

  • ₹10 lakh: For special category states (both goods and services)


3. Mandatory GST Registration Regardless of Turnover

Certain businesses must register for GST even if their turnover is below the threshold limit. These include:

  • Interstate Suppliers: Businesses supplying goods or services across state lines.

  • E-Commerce Sellers: Businesses selling through online marketplaces like Amazon, Flipkart, or their own e-commerce platforms.

  • Casual Taxable Persons: Individuals or businesses making occasional taxable supplies.

  • Non-Resident Taxable Persons: Foreign entities supplying goods or services in India.

  • Businesses under Reverse Charge Mechanism (RCM): Entities liable to pay tax on behalf of suppliers.

  • Input Service Distributors (ISD): Businesses distributing input tax credit to different branches.

  • TDS/TCS Deductors: Organizations required to deduct or collect tax at source under GST.


Conclusion

If your business meets any of these criteria, obtaining GST registration is mandatory to ensure compliance with tax regulations and to avail benefits like input tax credit. Registering under GST also enhances credibility and allows seamless business operations across India.

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