GST Registration

Every business carrying out a taxable supply of goods or services and whose turnover exceeds the threshold limit of Rs. 40 lakhs (Rs 20 lakhs for North Eastern and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.

The first 2 digits of the 15 digit GSTIN will represent the state code. For example: 27 for Maharashtra The next 10 digits will be the PAN of person or entity engaged in Business.

Any business whose turnover exceeds the threshold limit of Rs. 40 lakhs (Rs 20 lakhs for North Eastern and hill states) will have to register under GST. Businesses registered under any of the pre-GST laws: VAT, Excise/Service Tax have to register under GST by default. Apart from the normal taxpayer (as defined above), there are few special cases (as explained in section 3) that have to register for GST irrespective of their turnover.

An entity liable to be registered under GST should apply for registration under GST within 30 days from the date on which the entity becomes liable to register for GST. Casual taxable persons and non-resident taxable persons are required to be registered under GST, prior to commencing business.

GST Registration is not mandatory for persons who Supply agricultural produce from cultivation Make only exempt supplies (Nil Rated or Non-Taxable supplies) of goods or services Make supplies which are entirely covered under reverse charge

Yes, a person can get registered voluntarily under GST in terms of sub-section (3) of section 25. All the provisions will apply to him as they apply to a registered person.

Aggregate turnover is the aggregate value of all taxable supplies, exempt supplies, export of goods or services or both and inter-State supplies of a person having same PAN. Aggregate turnover does not include CGST, SGST, IGST and GST cess.

Yes. PAN is mandatory for normal taxpayers and casual taxable persons to be registered under GST. However, PAN is not mandatory for a non-resident taxable person for obtaining registration.

After submission of GST application with all the required documents, GSTIN is alloted within 7 working days.

Once GST certificate is granted, the registration is valid until it’s surrendered or cancelled or suspended. Only GST certificate issued to non-resident taxable person and casual taxable person have a validity period.

GST certificate is provided by the Government only in soft-copy format. Once GSTIN is allotted, GST certificate can be downloaded from the GST Portal at any time by the taxpayer.

Businesses or entities supplying goods or services must register for GST from every State from where taxable supply of goods or services or both is made.

Primary authorized signatory is the person who is primarily responsible to perform action on the GST System Portal on behalf of the taxpayer. It can be the promoter of the business or any person nominated by the promoters of the business.

No, an unregistered person without GSTIN cannot collect GST from customers or claim input tax credit of GST paid.

Procedure has been provided in the GST portal for migration of existing service tax or VAT or central excise to GST. Entities registered under old tax laws must complete GST migration mandatorily to obtain GST.

No. An entity operating in multiple states will have to get registered separately for each of the States from where taxable supply of goods or services is made.

Registration can be cancelled in 2 scenarios: When the taxable person wishes to voluntarily cancel his GST registration. When the proper officer, on default by the taxable person, moves to cancel the GST registration on his own motion. This may be when the person is not doing business from his declared registered place of business or if he issues tax invoice without making the supply of goods or services.

The taxable person has to apply on the common portal within 30 days. He will declare in the application, the stock held on that date, amount of dues and credit reversal and particulars of payments made towards discharge of such liabilities. If satisfied, the proper officer will cancel the registration within 30 days.

No, there is no concept of a central GST registration. Every PAN holder will have one GSTIN per State. Therefore, an entity having its branches in more than one state will have to take separate state wise registrations for each of its branches in different states even if they hold a single PAN.

An entity will have a single registration in each state for each PAN. Therefore, it can list only one place as its principal place of business and show all the other branches as additional places of business in that state. However, an entity can obtain separate registrations if in case it has separate business verticals within the state.

A Casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a Casual taxable person

A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration.

They have to apply for registration at least 5 days in advance before making any supply. The Registration Certificate issued is valid for a period of 90 days which can be extended. Further, they are granted registration or extension of period only after they deposit estimated tax liability.

Composition scheme is introduced for small tax payers to reduce the compliance burden on them a) File summarized returns on a quarterly basis instead of multiple monthly returns b) Pay tax only to a maximum of 2% for manufacturers, 5% for restaurant service sector and 1% for other suppliers c) Cannot collect any tax from or issue tax invoice to customers d) Cannot avail input tax credit

Only those persons who fulfil all the following are eligible to apply for composition scheme a) Deals only in intra-state supply of goods (or service of only restaurant sector) b) Does not supply goods that are not leveable to tax c) Has an annual turnover below 1.5 CR in preceding financial year d) Shall pay tax at normal rates in case he is liable under reverse charge mechanism. e) Not supplying through e-commerce operator

You need to file an online application to opt for Composition Scheme. Taxpayers who can opt for this scheme can be categorized as below: Migrated Taxpayers: Any taxpayer who has migrated from earlier laws and has been granted provisional registration certificate can file an application under Form GST CMP-01 and further details in Form GST CMP-03 within 30 days after 1st July, 2017. New Taxpayers: Any person, who is liable to register under GST Act after 1st July, 2017 can file Form GST REG-01 and choose his option to pay composition amount in the New Registration application. Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST regime shall file an application under Form CMP-02 to opt for Composition Scheme at least 7 days prior to the commencement of financial year for which the option to pay tax under composition is exercise.

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.

a) For normal registered businesses: Take input tax credit Make interstate sales without restrictions b) For Composition dealers: Limited compliance Less tax liability High working capital c) For businesses that voluntarily opt in for GST registration (Below Rs. 20 lakhs) Take input tax credit Make interstate sales without restrictions Register on e-commerce websites Have a competitive advantage compared to other businesses

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture upto final consumption with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer. The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian Government. The tax replaced existing multiple Central and State Government taxes.

Supplier have to get registered under Goods and Services Tax are as following- ? Any person having aggregate turnover more than 20 lakh (10 lakh for special category states) is liable to register under GST and hence needs to register under GST act. ? Person making any inter-state taxable supply. ? Causal taxable persons. ? Person who are required to pay tax under reverse charge. ? Person who required to deduct TDS u/s 37 of the Act. ? Input Service Distributor. ? Person who supply goods and/or services, other than branded services, through electronic commerce operator. ? Electronic commerce operator. ? An aggregator who supplies services under his brand name or his trade name.

Documents required for GST registration are as following- ? For Sole Proprietor ? Pan Card. ? Proof of Registered Office/ Principle Place of Business. • Electricity bill water bill landline bill. • Rent agreement. • Municipal tax khata copy. • Consent letter. • Legal ownership document. ? Rent agreement and No objection certificate. ? Photograph of the proprietor. ? Copy of bank statement or cancelled cheque or first page of bank pass book. ? For Partnership firm ? Pan Card of Partnership firm and designated partners ? Identity proof of all partners. ? Proof of Registered Office/ Principle Place of Business. • Electricity bill water bill landline bill. • Rent agreement. • Municipal tax khata copy. • Consent letter. • Legal ownership document. ? Rent agreement and No objection certificate. ? Photograph of all Partners. ? Copy of partnership deed. ? Copy of bank statement or cancelled cheque or first page of bank pass book. ? Letter of authorization for authorized signatory. ? For Limited Liability Partnership ? Pan Card of LLP and designated partners. ? Identity proof of all partners. ? Registration Certificate of LLP. ? Proof of Registered Office/ Principle Place of Business. • Electricity bill water bill landline bill. • Rent agreement. • Municipal tax khata copy. • Consent letter. • Legal ownership document. ? Rent agreement and No objection certificate. ? Photograph of all Partners. ? Copy of LLP Agreement. ? Copy of bank statement or cancelled cheque or first page of bank pass book. ? Letter of authorization for authorized signatory. ? Copy of board resolution. ? For Companies (Private Public & One person Company) ? Pan Card of Company and Directors. ? Identity proof of all the Directors. ? Registration Certificate of Company. ? Proof of Registered Office/ Principle Place of Business. • Electricity bill water bill landline bill. • Rent agreement. • Municipal tax khata copy. • Consent letter. • Legal ownership document. ? Rent agreement and No objection certificate. ? Photograph of all the Directors. ? Copy of bank statement or cancelled cheque or first page of bank pass book. ? Letter of authorization for authorized signatories. ? Copy of board resolution. ? For Hindu Undivided Family (HUF) ? Pan Card. ? Proof of Registered Office/ Principle Place of Business. • Electricity bill water bill landline bill. • Rent agreement. • Municipal tax khata copy. • Consent letter. • Legal ownership document. ? Rent agreement and No objection certificate. ? Photograph of the Karta. ? Copy of bank statement or cancelled cheque or first page of bank pass book. ? Photo of Authorized signatory. ? Letter of Authorization. ? For Society / Trust / Club ? Pan Card of Society / Trust / Club. ? Pan Card of Promoter / Partner. ? Photograph of Promoter / Partner. ? Copy of Registration Certificate. ? Proof of Registered Office/ Principle Place of Business. • Electricity bill water bill landline bill. • Rent agreement. • Municipal tax khata copy. • Consent letter. • Legal ownership document. ? Rent agreement and No objection certificate. ? Copy of bank statement or cancelled cheque or first page of bank pass book. ? Photograph of Authorized Signatory. ? Letter of Authorization.

The benefit of GST are as following- ? Elimination of Multiple Taxes. ? Saving more Money. ? Ease of business. ? Easy Tax Filing and Documentation. ? Reduction in Tax Evasion. ? Increase in Revenue. ? Increase in GDP

Composition scheme under the law is for small businesses. This is to bring relief to small businesses so that they need not be burdened with the compliance provisions under the law. Thus, an option has been provided where they can opt to pay a fixed percentage of turnover as fees in lieu of tax and be relieved from the detailed compliance of the provisions of law. Composition levy would be generally opted by persons who are supplying goods & services or both to the end consumer.

The conditions for opting Composition scheme under GST are as follows: The person opting for composition levy should be a registered person. Aggregate turnover of registered person in the preceding Financial Year should not exceed Rs.50 Lakh. The Composition Scheme under GST is applicable for Intra-State supplies only.

The taxpayers are restricted to opt composition scheme are following- ? Who is engaged in the supply of services. ? Who makes any supply of goods which are not levia ble to tax under the GST Act Who makes any inter-State outward supplies of goods and services. ? Who makes any supply of goods through an electronic commerce operator who is required to collect tax at source under section 56. ? Who a manufacturer of such goods is as may be notified on the recommendation of the GST Council.

One of the major advantages of the composition scheme under GST is the ease of doing business as a result of limited compliances with respect to the filing of returns, maintaining records, and issuing the relevant invoices from time to time. Reduced Compliance Burden GST significantly reduces the compliance burden for businesses compared to other taxes. This is primarily because the number of compliances is fewer, streamlining processes and allowing businesses to focus more on growth rather than paperwork. Convenient Online Filing Moreover, GST compliance is enhanced by the ability to file all returns online. This digital approach not only saves time but also minimizes the chances of errors, making the entire process more efficient. By embracing these aspects of GST, businesses can enjoy a smoother operational experience, ultimately contributing to an improved ease of doing business.

The Goods and Services Tax (GST) revolutionized the taxation landscape by addressing the issue of cascading taxes, a burden businesses previously had to bear. Here's how GST achieved this transformation: Unified Tax Structure: Before GST, multiple indirect taxes such as VAT, service tax, and excise duty were levied at different stages of production and distribution. This often resulted in a tax-on-tax situation. By consolidating these taxes under one system, GST eliminated redundant taxation layers, simplifying the tax process. Input Tax Credit Mechanism: One of the GST’s standout features is the seamless input tax credit system. Businesses can now claim credits for the taxes paid on inputs, which are offset against the taxes on sales. This ensures taxes are levied only on the value addition at each stage, reducing the overall tax burden. Consistent Taxation Across States: GST brought uniformity in tax rates and regulations across all states. Previously, differing state taxes added complexity and cost to inter-state transactions. GST’s standardization mitigated these issues, encouraging smoother and cost-effective cross-border business. By creating a streamlined and transparent tax environment, GST has significantly reduced inefficiencies and costs associated with the previous multi-layered tax regime. This change not only benefits businesses by reducing operational costs but also boosts the overall economy by fostering a more competitive market.

The implementation of the Goods and Services Tax (GST) has significantly transformed the landscape of the construction and textile sectors in India, two areas that were traditionally plagued with disorganization and lack of oversight. Enhanced Regulation and Compliance Before GST, these industries were largely fragmented and operated without strict regulation. However, with GST's introduction, there are now several mechanisms in place that facilitate compliance through online platforms. This shift to digital operations has increased transparency and accountability across both sectors. Positive Outcomes for Organization Streamlined Tax Procedures: GST has unified multiple indirect taxes into a single system, simplifying tax processes. This has made it easier for businesses to navigate taxation in a streamlined manner. Increased Formalization: The push towards compliance has encouraged more businesses in the construction and textile sectors to formalize their operations. This means better record-keeping, which aids in efficient management and operation. Access to Input Tax Credit: The availability of input tax credits under GST encourages manufacturers and builders to source from GST-registered suppliers. This not only ensures better quality inputs but also fosters a more structured supply chain. Greater Accountability The digitization of tax filings under GST has led to more accurate reporting and auditing capabilities. This ensures that companies in both industries adhere to legal and ethical business practices, contributing to a more trustworthy market environment. In summary, GST has brought about a much-needed transformation by organizing and regulating the construction and textile sectors in India, paving the way for a more professional and transparent industry standard.