Who is taxable person under GST?

There is one word in GST taxes which every person should know. And it is taxable person which comes in category of taxable person under revised GST. Here taxable person under GST means that it is person who has business in India. In addition it will be plus point if you know if you are going to be under GST tax or not. Whereas to understand taxable person concept you keep reading.

Taxable person under GST in India meaning

Taxable person in India under GST means that people who have business in India. While this business can be any place in India. Moreover this person must register under GST Act. If you involve in Trade and Commerce then you are taxable person according to GST.

List of taxable people under GST

Here you know if you are responsible to register for GST. Furthermore this list includes LLP, individuals, Government company, HUF, company or firm, corporation, local authority, AOP or BOI, trust, cooperative society.

Apart from this artificial juridical person, body corporate incorporated under laws of foreign country are also part of taxable persons.

Who should register for GST?

In some cases GST registration is compulsory. Below you can know in which places you must register under GST.

  • If you already registered under VAT, Excise Duty, Service Tax or other laws
  • Casual taxable person
  • Supplier agents
  • Business turnover is more than Rs. 20 lakhs
  • While it is Rs. 10 lakhs for hill stations or North Eastern states
  • Input service distributor
  • Supplier through e-commerce aggregator
  • Non resident taxable person
  • If you pay tax according to the reverse charge mechanism
  • When you supply online information, database access from outside India to some one in India
  • If you drive inter state supply of goods

Define non resident taxable person in GST

Non resident means that there is no fixed place of business. However you supply goods and or services where GST applies. Therefore this person is non resident taxable person under GST.

Meaning of casual taxable person in GST

Casual taxable person under GST meaning is that individual sometimes supplies goods and or services. This supply is where there is GST. Furthermore there is no fixed place for business.

Know more about GSTIN number registration format also. As it is important for us to know Goods and Services Tax Identification Number.

Input Service Distributor definition

Input Service Distributor is office of supplier of both goods and or services. This office also receives invoices. But it is only on receipt of input services. It will issue tax invoices as well. So that distributing CGST, IGST or SGST credit is easy.

While here credit means credit paid on services to branch with one PAN. In addition distribution is only on credit on input services. Therefore it does not apply to either input goods or capital goods.

GST registration rules

  • Every person must apply for GST registration
  • Time limit is 30 days from when liability to register starts
  • Casual as well as non residents apply for Goods and Services Registration 5 days before business starts
  • Assessee gets one registration for one State because GST is State wise
  • PAN card is mandatory as GST is PAN based
  • There is option for assessee to get different registration for every business vertical in one state

Who can collect GST tax?

If you register as taxable person then only you collect GST. Moreover taxable person shows GST tax amount on tax invoices also.

Special registration for non resident taxable person and casual taxable person

There is special registration for non resident taxable person and casual taxable person. However registration is according to Section 24. Additionally taxable people apply for GST registration 5 days before business begins.

On other hand Section 24 has special provisions. And these provisions relate to both taxable persons under GST. Besides you can get temporary registration for 90 days. While you can even extend this registration for another 90 days.

Rules under Section 24 of GST

In case you get registration under Section 24 then you must make advance deposit of GST. Further this is on approximate tax liability.

Thus you understood what is GST and who is taxable person under Goods and Services Tax. You can also know about GST registration and who needs it?

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