REQUIREMENT OF REGISTERATION UNDER NEW GST LAW FOR INTER STATE SUPPLIES

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As the new Draft GST Law is out every business man has the query for “whether he needs to registered mandatorily under the GST law or not?” So today we are providing you details regarding registration requirement for INTER STATE Supplies.

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The extract of the GST Law for registration in case of Inter State Supplies are as follows:-

“Notwithstanding anything contained in paragraph 1 and 2 above, the following categories of persons shall be required to be registered under this Act:

(I) persons making any inter-State taxable supply, irrespective of the threshold specified under paragraph 1;”

 From the above bold line we found the following conclusions:

In the above mentioned line there are 4 words which clearly depicts the law and these words are

REQUIRED TO BE REGISTERED	That means, mandatorily registration.
INTER STATE	Supplies must be for Inter State.
TAXABLE SUPPLY	Supplies must be taxable & not Exempted.
IRRESPECTIVE OF THE THRESHOLD	If above conditions are satisfied then no threshold limit of 9 Lakhs will be applicable.

We can understand the “Funda” of applicability of threshold limit of Rs. 9 Lakhs with the help of few examples.

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Example 1

Person supplying only local supplies & started Taxable Inter State Supplies

If a person is supplying only local supplies and reached his limit to only 6 Lakhs & started Taxable Supplies to interstate then he needs to be registered mandatorily immediately without any delay and he will not enjoy the threshold limit of Rs 9 Lakhs.

Example 2

Person supplying only local supplies & started Exempted Inter State Supplies

If a person is supplying only local supplies and reached his limit to only 6 Lakhs & started exempted Supplies to interstate then he need not to be registered mandatorily immediately and he can enjoy the threshold limit of Rs 9 Lakhs.

Example 3

Person just started Supplies for new business & supplies are Taxable Inter State Supplies

If a person has just started new business & his supplies are Inter State then he needs to be registered mandatorily immediately without any delay and he will not enjoy the threshold limit of Rs 9 Lakhs.

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 That’s all for REQUIREMENT OF REGISTERATION UNDER NEW GST LAW FOR INTER STATE SUPPLIES.

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Regards
SOURAV BAGARIA