Do I need a GST number for my small business?

Under the previous indirect tax regime, multiple registration numbers were required for the different sets of Service Tax, Excise Tax, VAT, etc. However, with the introduction of GST, people or businesses require only a single registration number. Businesses thus need a GSTIN for operations. 

GSTIN, or GST identification number is a 15-digit unique alpha-numeric identification number which is allotted to every registered person under GST. However, an individual can have multiple GST numbers if he is an assessee under the Income Tax Act for different states/union territories he operates his business from.
Persons or businesses which exceed a certain threshold limit are mandatorily required to register under GST.

Precisely, businesses with turnover exceeding Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) are mandated to register as a normal taxable person. The process of such businesses getting registered for taxes is called GST registration.

Tax authorities use the GST number for maintaining systematic records of GST dues and payments for people under the GST Act. In cases, where it is deemed by the law to get registered for GST, failure to do so is regarded as a legal offence. This calls for heavy penalties and fines.

Who is required to register for GST number?

• Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
• Businesses with turnover above the threshold limit
• Non-Resident taxable person
• Those paying tax under the reverse charge mechanism
• A pPerson who supplies via e-commerce aggregator
• Every e-commerce aggregator

However, in certain cases, small businesses are exempt from GST registration.

• Certain goods such as petrol, alcohol for human consumption are non-taxable as per the GST rules. 
• Goods such as fresh milk, fresh vegetables, etc. are included under the zero- rated list for which the tax rate is 0%. 
• Certain goods supply declared as exempted by the Ggovernment. This also includes the exports/supply of goods to a Special Economic Zone. 

Thereby indicating that GST rules underline certain exemptions for startups, small businesses,  and specific supply of goods. Proper assessment, recording,  and registration for GST number is an essential step for operating business as per legal formalities.

Alankit offers stepwise assistance for the easy and quick process of GST registration. Get GST number with hassle-free guidance from Alankit’s team of professionals. Using the latest technology and automation, Alankit also delivers online or digital GST registration service to its wide network of users.