GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to obtain GST registration. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, GST registration is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.
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The general rule of GST states that everyone who has an annual turnover of Rs. 20 Lacs or more will fall under the GST slab and have to register themselves under GST. However, in North East States, Uttarakhand and Himachal Pradesh, the business having turnover more than Rs. 10 Lacs has to register under GST.
Apart from this, the following category people irrespective of their business turnover need to register under GST:
The Rs. 20 Lacs limit is for those suppliers who supply within state suppliers who supply to other state have to register under GST.