According to the GST Act 2017, the registration process has several categories to fall under. Depending on the several kinds of business entities in the states, the GST registration process is divided into multiple categories, which are given as follows,
The largest businesses in India are considered normal taxpayers. It is easier and simpler for them to pay taxes as they do not have any deposit fees or expiration dates on their fines. Additionally, the central government allows them access to unlimited validity of input tax credit.
Casual Taxable Person:
The best option for small businesses that are more seasonal is the Casual Taxable Person registration. Companies who fall under this category of GST Registration must pay an advance amount equivalent to their anticipated GST liability during the time they’re present. Howbeit, these categories are valid for three months only and can be increased if desired.
Taxpayers can save themselves from tedious GST rules by opting out of the Composition Scheme. However, they will not be able to claim an input tax credit. Small taxpayers may find this trade-off worth it and pay a set rate of turnover instead.
Non-Resident Taxable Person:
The non-resident taxable person applies to those living outside India yet supplying goods/services to the country. According to the GST law, such businesses are obliged to pay advanced GST tax rates for activating their GST registration. However, the registration is only effective for 3 months, with the option to extend it if necessary. Below are some examples of non-resident businesses that fall under this GST act,
• Non-Resident Online Service Provider
• Government Entities-GST TDS Deductor
• Developer of the Special Economic Zone
• Special Economic Zone Unit
• Individuals notified by the UN Embassy/ Body/ Other
• E-commerce Companies-GST TDS Collector