GST or Goods and Services Tax was introduced in India on July 1, 2017, with the aim of creating a single and unified tax structure across the country. One of the most commonly asked questions by business owners and startup founders is whether registration under GST is mandatory for them or not. While the answer might seem simple, there are several nuances to it that need to be explored.
As per the GST Act, the following entities are required to register for GST:
It is important to note that even if your turnover is below the threshold limit, you may still choose to register under GST voluntarily to take advantage of several benefits such as input tax credit.
Registration under GST is important for several reasons:
Under the GST Act, failure to register for GST when required to do so can attract the following penalties:
Registration under GST is mandatory for businesses meeting certain criteria, and failure to do so can result in heavy penalties. However, even if your turnover is below the threshold limit, it may still be beneficial to register voluntarily to take advantage of the input tax credit scheme and add to the credibility of your business.
If you have any questions about GST registration or compliance, it is recommended that you consult a tax professional.
Residual Method of Valuation of Supply Under GST: A Comprehensive Guide
Reverse Charge Mechanism On Services Under GST Regime
Guide on GSTR-2 Filing on GST Portal