GST Taxpayer Classifications and How to Register in India

Goods and Services Tax (GST) in India stands as a comprehensive, multi-stage, and destination-oriented tax imposed on each added value. For any business involved in the provision of goods and services, grasping the GST classifications and registration procedures is vital to uphold tax conformity. Whether you are a budding startup, a well-rooted corporation, or an e-commerce entity, learning your categorization as a GST contributor holds significance. This article introduces the various taxpayer classifications under GST and navigates how to register for GST in India.

GST Taxpayer Classifications in India

The GST regime categorizes taxpayers based on their turnover, nature of business, and registration requirements. The following are the key GST categories in India.

1. Regular Taxpayer

Regular taxpayers shall be those businesses and persons who have a turnover of up to ₹40 lakh, ₹20 lakh for service providers, and ₹10 lakh in case of special category states,and they will be filing their GST returns monthly or quarterly and can avail the benefit of the input tax credit.  It has been made mandatory for maximum medium and large enterprises to obtain GST registration to comply. 

2. Composition Scheme Taxpayer

Small business owners earning up to ₹1.5 Crore per annum can come under Composition Scheme, in special category states, the same limit goes down to ₹75 lakhs. This includes Fixed-rate GST payment, quarterly filing of returns, and no eligibility for input tax credit. This option benefits small businesses immensely, relieving some of the burdens of complying with tax rules and facilitating easier tax payments. 

3. Casual Taxpayer

A business whose activities are confined to a short period in any particular state shall register as a casual taxpayer. Mostly it is in event-based business or exhibitions. Registration is allowed for 90 days and the period can be extended if required. A casual taxpayer needs to pay an advance tax deposit as per their estimated tax liability.

4. E-Commerce Operators

Entities that facilitate supply of goods and services through an online platform need to be registered under GST irrespective of the turn over. They need to follow TCS (Tax Collected at Source) provisions and file proper GST returns for all the transactions that take place through their platform.

5. Non-Resident Taxpayer

There is another category wherein the business or individual who is supplying goods or services in India but has no permanent establishment falls under non-resident taxpayers. This would ensure that all foreign businesses trading within India follow the GST norms and pay relevant taxes.

6. Input Service Distributor (ISD)

An ISD is a business that receives input tax credits and distributes them to its branches. It is usually applied by large companies with several branches to ensure credit distribution without hitches and for efficient reduction of tax liabilities.

7. TDS and TCS Deductors

Any government department or e-commerce business that deducts TDS or TCS needs to get registered under GST. This ensures that taxes are collected in an organized manner, and tax evasion is avoided.

Knowing your classification would keep you away from penalties and ensure you are on the right course. If still not sure what category of business you fall under, then it is advisable to seek a Gst Tax Consultant In Chennai.

How To Get Registered Under GST India

Registration under GST can be done quite easily and that too through the online portal. Here’s how to get yourself registered for GST:

Step 1: Go to the GST Portal.

Enter the GST site (www.gst.gov.in), go to the ‘Taxpayers’ tab, and click on ‘Register Now’.

Step 2: Fill Part A of the Form

Provide PAN, mobile number and email ID. An OTP verification will be performed to proceed further.

Step 3: Get Temporary Reference Number (TRN)

A TRN will be generated through an email and SMS after filling Part A. One has to use the same TRN to proceed further using Part B.

Step 4: Complete the Part B of the Application

Enter the business information, bank details, and documents such as:

• PAN card of the business
• Proof of business address
• Aadhaar card of promoters
• Business incorporation certificate
• Bank account details
• Business activity details

Step 5: Validate and Submit

Once all the details have been entered, submit your application either with Digital Signature (DSC) or Electronic Verification Code (EVC) which is a measure of authenticity and prevents fraudulent registration.

Step 6: GST Registration Certificate Issuance

Once confirmed, the GST authority would allow your application and provide a GSTIN or GST Identification Number with a certificate of registration. A business shall mandatorily print their GSTIN on every invoice and all places of its business.

Gst Registration Consultants In Chennai make it easier if you want someone to do all this work on your behalf in this process. 

Why consider a GST tax consultant in Chennai?

GST compliance can be a bit of a maze, and mistakes in filing returns or registering under the wrong category can attract Application Rejection or penalties. A Gst Tax Consultant In Chennai provides professional guidance to ensure smooth registration, compliance, and tax filing. These consultants also help businesses optimize their tax liabilities while staying compliant with regulations.

Moreover, Virtual Bookkeeping Services provide business owners with expert consultancy on online solutions for GST filing, invoice management, and accounting, ensuring seamless financial management. By outsourcing the bookkeeping service, businesses may be able to concentrate on the core operations without any deviation towards inaccuracy in financial reporting.

The Takeaway

Understanding the correct registration procedure and the differences between GST categories is important for businesses in India. Whether it is a startup, SME, or an e-commerce business, GST registration is a mandatory process that helps run the business smoothly.

For an easy GST registration process, get in touch with Chennai Accounts, the trusted name in GST consultation and compliance support. Our expert team can guide you through the entire process of registration, and ensuring smooth operation and fulfilling compliance with tax regulations.

Found this helpful? Read more in GST Explained: Meaning, Registration, and Key Benefits to learn more about GST advantages!