Among other things and subject to various conditions, GST registration is mandatory when:
– The company’s turnover of services is greater than 20 lakhs
– Or, the turnover of Goods is greater than 40 lakhs
– Or, there are interstate transactions (selling goods / services from one state to another)
Some companies don’t apply for GST till they achieve their turnover limit.
However, most of the companies apply for GST registration on voluntary basis if:
– They want to take GST Input Tax Credit (ITC)
– Are required by their vendors to have a GST number
– Want to sell online on third party marketplace like Amazon, Flipkart, etc.
Once the GST number is allotted, the company has to file the GST returns on a monthly and quarterly basis (even if there is zero business transaction)