Who can avoid GST Registration in Import-Export Business?

Import and export businesses in India are subject to the Goods and Services Tax (GST), however, there are certain conditions under which these businesses may be able to avoid registering for GST.

First, if a business’s annual turnover is below the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for Northeastern and hill states), they are not required to register for GST. But, they have the option of voluntary registration if they wish to claim input tax credit. If your import-export business falls under this threshold limit, then you may not have to register for GST.

Second, businesses involved in exporting goods and services can take advantage of the Export of Goods and Services (EOS) scheme. Under this scheme, businesses can claim a refund for the GST paid on their inputs and input services. This means that export businesses may be able to avoid GST registration if they opt to claim a refund under the EOS scheme. Additionally, it’s important to know how to get a certificate of origin for export, for that you may refer to this guide.

Third, businesses that import goods are eligible for the Import of Goods (IGST) scheme. Under this scheme, they can claim a refund for the GST paid on the imported goods. This means that import businesses may be able to avoid GST registration if they choose to claim a refund under the IGST scheme.

It is essential to note that even if an import-export business is able to avoid GST registration, they may still have to pay GST on the goods or services they purchase. But, they can claim input tax credit on the GST paid on their purchases.

Additionally, it’s important to keep in mind that exporting or importing goods comes with its own set of formalities that need to be fulfilled. Proper documentation and compliance are a must to avoid any penalties or fines.

In a nutshell, import-export businesses whose annual turnover is below the threshold limit of Rs. 20 lakhs and businesses involved in exporting goods and services may be able to avoid GST registration if they opt for the EOS scheme. Similarly, businesses involved in importing goods may avoid GST registration if they choose the IGST scheme. But, it’s important to comply with the formalities and keep proper documentation to avoid any penalties or fines. It’s always a good idea to seek professional advice and consult with a GST expert before making a decision on whether to register for GST.