Under the Goods and Services Tax (GST) regime, various types of registration exist to accommodate the diverse nature of businesses. The types of registration include:
- Regular Registration: Businesses with an annual aggregate turnover exceeding the threshold limit are required to opt for regular registration. This type of registration allows the business to collect taxes from customers and avail input tax credit.
- Composition Scheme: Small businesses with a turnover below the prescribed limit can opt for the composition scheme. Under this scheme, taxpayers are liable to pay tax at a fixed rate on their turnover and are not eligible to claim input tax credit.
- Casual Taxable Person: Individuals or businesses that occasionally undertake transactions involving taxable goods or services and do not have a fixed place of business can opt for registration as a casual taxable person.
- Non-Resident Taxable Person: Non-resident individuals or businesses making taxable supplies in India are required to register as a non-resident taxable person.
- Input Service Distributor: Input Service Distributor (ISD) is a separate registration available for businesses that procure services and distribute input tax credit to other business verticals.
- TDS or TCS Deductor: Entities required to deduct tax at source (TDS) or collect tax at source (TCS) are mandated to obtain separate registration under GST.
Understanding the types of registration under GST is crucial for businesses to comply with the regulations and fulfill their tax obligations effectively. Each type of registration caters to specific business requirements, ensuring a fair and transparent taxation system for all entities involved.
