Non-applicability of GST registration refers to individuals or entities exempted under Section 23 of the CGST Act, 2017, including those supplying only non-taxable/wholly exempt goods/services, agriculturists (for produce from land), or those with turnover below threshold limits (₹20/10 lakhs). These persons do not need to register or pay GST.
But persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST.
Only GST-registered businesses can charge and claim GST from their effective date of GST registration. Non-GST registered businesses are not allowed to charge or claim GST.
Supply based: This type of exemption is usually applicable to suppliers involved in public-welfare or non-profit activities, irrespective of what they are selling. Example: Public utility services like water supply and healthcare related supplies are exempt from GST under this category.
Dear Sir / Madam , We ____________________ ( company name ), _________ ( CIN ) , incorporated under the Companies Act ____ ( 1956 / 2013 ) , we do hereby state that we are not liable to registration under the provisions of Goods and Service Tax as our aggregate turnover is below the prescribed threshold limit .
Supplies which don't come under the scope of the GST are termed as Non-GST supplies. However, these supplies can attract taxes other than the GST as per the jurisdiction of the state or the country. Some examples of such supplies include petrol, alcohol, etc.
If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest.
If the place of supply and the location of the supplier are in the same State then it will be intra-State supply and CGST / SGST will be applicable.
GST is not levied on certain goods and services: Exempt items: the sale and lease of residential properties, provision of financial services, import and local supply of investment precious metals, and supply of digital payment tokens (e.g. cryptocurrencies) from 1 January 2020.
You're considered a small supplier as long as your gross revenue remains less than $30,000 over any 4 consecutive calendar quarters. This means you're not required to register for GST/HST.
The main benefit of being GST registered is that you can claim back GST on your business expenses. If you pay more in GST when buying supplies for your business than you charge your clients, you are eligible for a GST refund.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
Disadvantages of Voluntary GST Registration
GST registration is mandatory for all eCommerce Sellers Citizen can apply for New GST by Registrating online without Visiting the Govt. office.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Certain goods and services are exempt from GST due to their essential nature. This type of exemption is based solely on the nature of the supply, without regard to the supplier. Example: Healthcare, educational services, and public utility services such as water supply are exempt from GST.
You must register for GST if you: run a business or enterprise that has a GST turnover (gross income minus GST) that exceeds the GST threshold of $75,000. expect your new business to reach the GST threshold in the first year of operation. have a non-profit organisation with a GST turnover of $150,000 per year or more.
Customers do not pay GST on goods and services that are GST‑free such as basic food, many medical and health services, some education courses, childcare, certain medical aids, and exports.
Registration under GST is a legal requirement for businesses. The CGST Act 2017 specifies minimum turnover criteria for registration (Rs 40 lakhs for goods and Rs 20 lakhs for services). Still, certain specific businesses are required to register under the GST, irrespective of their annual turnover.
Your business will need to register for GST if your annual turnover is $75,000 or more. You have a choice to register or not if it's less than that. You must register for GST if you reach the $75,000 turnover threshold or if it looks likely that you will exceed it.
You are eligible for the GST/HST credit if you meet all of the following conditions:
You have to start charging GST/HST on the supply that made you exceed $30,000. You exceed the $30,000 threshold 1 over the previous four (or fewer) consecutive calendar quarters (but not in a single calendar quarter).
Heavy Penalties and Fines
If you are liable to register for GST but fail to do so, you are considered in violation of GST law. As per the GST Act: A penalty of ₹10,000 or 10% of the tax due, whichever is higher, is applicable. If tax evasion is found to be intentional, the penalty can go up to 100% of the tax due.
To register a proprietorship firm without GST in India, you need to follow these steps: