GST Registration for Service Providers

GST rules for registration have been made more convenient for service providers in the 23rd GST Council Meeting. In this article, we look at the turnover limit for service providers for obtaining GST registration.

Turnover Limit for Service Providers

Like any other category of business, all service providers should obtain GST registration, if the entity's aggregated annual turnover exceeds Rs.20 lakh per annum in most states and Rs.10 lakh in the Special Category States.

Inter-State Sales Service Provider - GST Registration

For all other types of businesses, the entities must obtain GST registration, irrespective of annual aggregate turnover, if the businesses are involved in supplying goods from one state to another. However, for service providers, this limitation does not apply as per the decision announced in the 23rd GST Council Meeting. Hence, for service providers, involved in interstate or intra-state supply of goods, within a turnover of 20 lakhs (Rs.10 lakhs in Special Category State), you can opt-out from registering with GST. Further, this exemption is also available for service providers supplying services through an e-commerce operator.

Service Providers Requiring Mandatory GST Registration

The Government has provided an exemption for obtaining GST registration for a majority of the service providers, subject to the annual aggregate turnover criteria. However, the following types of service providers would still be required to be registered under GST irrespective of annual aggregate turnover:

OIDAR Service Providers
E-Commerce Operators
Non-Resident Taxable Person supplying services to Indian Residents
Casual Taxable Person

When should you obtain GST Registration?

If you are an existing service provider with service tax registration, the entity must take necessary steps to transfer service tax registration to GST registration. If you are starting a new service business, then you must apply and obtain GST registration within 30 days of commencing business. If you are a casual taxable person or non-resident taxable person, you must obtain GST registration at least 5 days before commencing business. Learn more: GST Registration for Importers.

GST Invoice for Services

In case you are not registering under GST, you can issue a bill of supply but without mentioning any GST. You are also not eligible to collect GST from customers if you do not have a GST registration. In case, you have a GST registration, you must provide a tax invoice for the services within a period of 30 days of the rendering of services. The supplier must produce two copies of the invoice, in the form of original and duplicate. The tax invoice must include detail of service rendered, GSTIN of the customer (if registered under GST), invoice date, invoice number, GST rate applicable, SAC Code, and GST applicable.

Process of Registration

For those service provider who must obtain GST registration, the process is very simple:

Upon logging into your service tax account, you will be given a provisional ID and password for the purpose of enrollment in GST.
Upon entering the GST portal, you will be prompted by selecting one of the two given choices, where you must click "New user login".
Login using your ID and password.
After logging in, you will be taken to a page where you enter your mobile number and e-mail address.
After entering the same, you will receive separate OTP's on your mobile number and e-mail; mention them.
Create your desired user name and password.
Set security questions.

After following all the above-mentioned steps, the Portal shall approve the GST Registration. In case you have more questions about GST registration, feel free to contact an India Filings Business Advisor for GST registration.

GST Registration

GST LUT Form