Registration under GST: Threshold, Types of Registration, Composition Scheme (Basics) and GSTIN Questions

Question 1

What is GST registration?

Accepted Answer

GST registration is the process of enrolling a person/business under GST so they become a **registered taxable person** and receive a **GSTIN** (concept).

Question 2

GSTIN stands for:

Accepted Answer

**GST Identification Number** (GSTIN).

Question 3

Threshold registration under GST is generally based on:

Accepted Answer

**Aggregate turnover** (concept).

Question 4

Composition scheme taxpayers can claim ITC. (True/False)

Accepted Answer

False. Under the **composition scheme**, **ITC is not available** (basic concept).

Question 5

State one benefit of GST registration for a business customer (B2B).

Accepted Answer

It helps the buyer claim eligible **Input Tax Credit (ITC)** on GST charged (subject to conditions) (concept).

Question 6

Who is a casual taxable person (in one line)?

Accepted Answer

**Casual taxable person** is a person who makes taxable supplies **temporarily** in a State/UT where they do not have a fixed place of business (concept).

Question 7

List any three reasons why GST registration is important (exam points).

Accepted Answer

Any three reasons (exam points):

- legal authority to **collect GST** and issue **tax invoices** (concept)
- ability to claim eligible **ITC** (subject to conditions)
- mandatory **compliance**: return filing and tax payment
- improves business credibility and supports B2B credit chain (concept)

Write any three with brief explanation.

Question 8

Explain aggregate turnover (concept) used for threshold registration (any three points) using a small table.

Accepted Answer

**Aggregate turnover** is a broad turnover measure used to decide whether registration is required (concept).

| Point | Explanation (concept) |
|---|---|
| Basis | linked to turnover threshold for registration |
| Coverage | considers value of supplies under the same PAN (all-India) |
| Nature | includes more than just taxable sales (basic idea) |

Exact inclusions/exclusions are as per law; write the concept clearly.

Question 9

Differentiate Regular scheme and Composition scheme (any three points) using a table.

Accepted Answer

Difference (basics):

| Basis | **Regular scheme** | **Composition scheme** |
|---|---|---|
| Tax payment | normal rate on supply | fixed/compounded rate on turnover (concept) |
| ITC | eligible **ITC** available | **ITC not available** |
| Invoice | tax invoice with GST | generally bill of supply (no GST collection separately) (concept) |

Any three differences are sufficient.

Question 10

Write a short note on composition scheme: features and limitations (any three points) with a table.

Accepted Answer

Composition scheme (basics) (concept):

| Aspect | Points |
|---|---|
| **Features** | simplified compliance; tax at fixed rate on turnover |
| **Benefits** | easier for small businesses; fewer compliances (concept) |
| **Limitations** | **no ITC**; restrictions on collecting tax separately / inter-state outward supply in many cases (concept) |

Write any three clear points.

Question 11

List any three types/categories of GST registration and write one-line meaning of each (use a table).

Accepted Answer

Any three types (overview) (concept):

| Category | One-line meaning |
|---|---|
| **Regular** | normal ongoing registered taxpayer |
| **Composition** | small taxpayer paying tax at fixed rate with simplified compliance (concept) |
| **Casual taxable person** | temporary supplies in a State/UT |
| **Non-resident taxable person** | non-resident making taxable supplies in India |

Write any three with one-line meanings.

Question 12

Explain why composition scheme is not suitable for all businesses (any three points) with a small table.

Accepted Answer

Composition scheme may not suit all businesses because of its restrictions (concept).

| Restriction | Why it matters (concept) |
|---|---|
| **No ITC** | B2B customers may prefer invoices with ITC chain |
| No GST collection separately | margins/pricing may be affected |
| Inter-state outward supply restrictions (many cases) | limits expansion across States |

Write any three points clearly (exam style).

Question 13

Explain GST registration: meaning, threshold concept and GSTIN (exam-style) using headings and a small table.

Accepted Answer

### Meaning
GST registration enrolls a person under GST so they become a **registered taxable person** and receive a unique **GSTIN** (concept).

### Threshold concept
Registration is generally required when **aggregate turnover** crosses the prescribed limit (concept). Aggregate turnover is a broad turnover measure linked to the PAN (basic idea).

### GSTIN (use)
**GSTIN** is used on invoices and returns to identify the taxpayer and support the **ITC** chain (concept).

| Item | Key point |
|---|---|
| Registration | makes you part of GST compliance system |
| Threshold | based on **aggregate turnover** |
| GSTIN | unique identification for invoices/returns |

Conclusion: Registration ensures lawful tax collection and compliance, and supports credit flow in GST (concept).

Question 14

Compare regular taxpayer and composition taxpayer in GST and explain when composition is preferred (exam-style) with a table and flow.

Accepted Answer

### Comparison

| Basis | **Regular taxpayer** | **Composition taxpayer** (concept) |
|---|---|---|
| Tax | normal rate on supply | fixed/compounded rate on turnover |
| ITC | can claim eligible **ITC** | **ITC not available** |
| Compliance | comparatively more returns | simplified compliance |
| Invoice | tax invoice with GST | bill of supply (generally no GST collection separately) |

### When composition is preferred (concept)
Composition may be preferred when a small business wants **simple compliance** and is eligible under the law, and when loss of **ITC** and restrictions are acceptable.

Flow (decision idea):

```text
Small turnover + eligible? -> Need ITC? (Yes) Regular
                       -> Need ITC? (No)  Composition
```

Question 15

Explain different types/categories of GST registration (regular, composition, casual, non-resident) and their significance (exam-style) with a table.

Accepted Answer

### Types/categories (overview)
GST registration categories exist because taxpayers have different business situations (concept).

| Category | Meaning (simple) | Significance (concept) |
|---|---|---|
| **Regular** | normal ongoing business | collects GST, claims eligible **ITC**, regular compliance |
| **Composition** | small business simplified tax | fixed rate, simpler compliance, **no ITC** |
| **Casual taxable person** | temporary supplies in a State | enables lawful short-term supplies and compliance |
| **Non-resident taxable person** | non-resident supplying in India | brings cross-border suppliers into GST net |

Conclusion: Correct category ensures appropriate compliance and supports the credit/traceability system in GST (concept).

Registration under GST: Threshold, Types of Registration, Composition Scheme (Basics) and GSTIN

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