GST Registration for Trader

Taxation
1

Hi!
I would like to know whether a trader needs GST Registration?

Thanks.
@ShubhS9

2

@Quicko can you.

1 Like
3

Would be kind enough to share your knowledge on the mentioned query?
@Quicko

4

Hey @Tapastanay,

‘Securities’ have been explicitly excluded from the purview of GST, by virtue of its exclusion from the definition of ‘goods’ and ‘services’, as contained in Section 2(52) and Section 2(102) of the CGST Act respectively. As per Section 2(101) of the CGST Act, the term securities derive its meaning from Section 2(h) of the Securities Contracts (Regulation) Act, 1956, in terms of which, securities include shares, stocks, bonds, derivative instruments etc. Hence, a trader mandatorily does not need GST registration.

3 Likes
5

Thanks a ton for a clarification.

6

What if i also have other business.
suppose my turnover in trading exceeds the GST limit but in business, it hasn’t.

but if they count total turnover of all income then it will obviously higher than the allowed limit,

So, should I need to have GST registration ? or only after other incomes source (other than trading) exceed the allowed limit?

@Quicko can you answer this ?

7

@Quicko , please reply on above query

Thanks

8

Hi @kp123

It is mandatory to register under GST if the Aggregate Turnover exceeds the threshold limit.
Aggregate Turnover is the total sales value of taxable/exempt goods or services.

The GST Act specifically excludes Securities from the definition of Goods and Services. As per Section 2(52), Goods means any movable property except money and securities.
Thus, trading in shares and securities falls outside the purview of GST. Therefore, securities traders are not liable to register under GST.
If there is any business other than trading, you must check the applicability of GST Registration based on the turnover.

1 Like
9

@Quicko thanks for the reply

my other business’s total turnover is below limit. but just trading turnover exceed.

so, I think I don’t need to register until my other business (other then trading) exceeds the limit.

am i right?

10

@kp123, Yes. You just need to check if you turnover from other business exceeds the prescribed limit of aggregate turnover under GST.