In the Indian GST (Goods and Services Tax) system, a Taxable Person is any individual or entity that is registered or required to be registered under GST laws. This includes businesses, professionals, service providers, and traders whose annual turnover exceeds the prescribed threshold limit set by the government.
A Taxable Person is responsible for collecting GST on taxable supplies of goods or services and paying it to the government. They must also file regular GST returns, maintain proper records, and comply with all provisions under the GST Act. Registration as a Taxable Person ensures a business is recognized by the tax authorities and can legally operate and claim input tax credits.
This term is crucial during business registration, tax compliance, and while applying for GSTIN (GST Identification Number). Without being identified as a Taxable Person, a business cannot issue valid GST invoices or claim tax benefits. Understanding this concept helps small business owners and new entrepreneurs stay compliant and avoid penalties.
To learn more about how GST applies to your business and get professional assistance, visit FinTax24's GST Solutions.
Becoming a Taxable Person is not just a legal requirement—it's a step toward structured growth, credibility, and smooth business operations under India's tax system.