How to avoid/ skip GST registration in India

Introduction

If you are someone who is looking to avoid GST registration within the parameters of law then this article is for you. Among all the buzz and news on registration under GST, we will be telling you how not to register under GST. We will be discussing how you can avoid registration under the tax.

However, before that we need to first understand as to when GST registration becomes mandatory.

When is GST registration compulsory?

The following are few examples when you compulsorily have to register under GST-

• Crossing the threshold (annual turnover above 20 lakhs)
• Interstate supply ( supplying from one state to another)
• Supply of exempted and nonexempted goods (together)

We are all aware that if it is interstate or e-commerce then the turnover is not important you necessarily have to register under GST. Today in the article let us discuss how you can avoid GST registration.

How to avoid when you have crossed the threshold under GST

If you are a retailer/ supplier/ service provider with an annual turnover above Rs.20 lakhs, then it is necessary for you to register under the tax. Further, the annual aggregate turnover is calculated for one pan across India.

Hence, if you issue the invoices against the different PAN, then your exemption limit is multiplied by two. For example: you own three different entities, proprietorship, partnership and HUF. In this case, you have the total basic exemption of 60 lakh, i.e. 20 lakh for each business.

As said, if you have multiple entities and doing the intrastate transaction, then you can avoid the GST registration up to certain limit.

How to avoid GST when you have made interstate supply

Anyone supplying either goods or services from one state to another has to register under GST. Turnover has no role to play in this. For example, if your income is below 20 lakhs but you are doing interstate supply it becomes necessary for you to register under the tax.

Suppose, you are making interstate supply to UP from Delhi, in this case you can choose to open another entity in the state of Uttar Pradesh. When you register another entity in the state of Uttar Pradesh and starts supplying goods from there only, then you cease to supply interstate supply and hence you shall enjoy another threshold limit and can skip the GST registration for both Delhi and UP.

How to avoid GST when you have supplied exempted and nonexempted goods

If a person is supplying exempted goods only then GST registration is not required however if that same person is supplying exempted goods along with nonexempted good then the exception will cease to exist and he will have to register under GST.

Here is how you can save yourself from registration and compliance –

You can continue supplying the exempted goods under your name the only difference will be to supply nonexempted goods under another entity.

Conclusion

Being said that, it is important to register if you are coming under the compulsory registration otherwise there will be consequences. For any query related to GST email us at info@hubco.in.

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