Tags: gst, registration, registrations
The Goods and Service Tax is the biggest indirect tax reform which blends in all the other taxes into one single tax structure. Under GST Regime, the goods and services are now taxed under a single law being Goods and Service Tax Laws. The taxes are levied at a single rate. The collection is then bifurcated between both Central and State Government in name of CGST and SGST or IGST.
Threshold Limit for Registration
The registration under GST is mandatory for the business entities based on the criteria of turnover or activities. The business dealing in goods and those providing service have to mandatorily apply for GST Registration if their aggregate turnover for a financial year exceeds Rs.40 Lakhs and Rs.20 Lakhs respectively. However, for business making supplies and providing services in the North Eastern States, the same is Rs. 20 lakhs and Rs. 10 lakhs respectively. Owing to its benefits, many dealers also obtain voluntary registration under GST.
The GST registration in India is completely an online process. GST Registration affirms seamless flow of Input Tax Credit in addition to providing recognition as a registered supplier.
Once the supplier of goods or services has obtained the registration under GST, he can take credit of the GST paid to the previous supplier concerning business activities. The decreased cost of inputs lowers the pricing of supplies. The registered GST supplier is also eligible to pass the ITC to the consumers.
The online registration process is simplified with the assistance from LW experts. With the completion of registration process, the certificate is granted to the applicant stating the GST registration number, which is called GSTIN. The registration granted is permanent registration without any renewal requirement.
With compulsory or voluntary registration under GST, the supplier is eligible to collect the taxes legally. Further, the supplier can also pass on the credit. The voluntary registrant also gets equal status and responsibilities of taxpayer registered under the mandatory criteria. With the said registration, the registrant can also issue pakka invoice to the consumers.
Upon registration, every registrant is liable to fulfil compliance in the form of return filing in a periodical manner. These compliance requirements are simplified under the GST regime. It is also proposed to simplify the compliance through single return filing from multiple filings. A regular taxpayer would be awarded a higher GST Compliance rating as compared to others.
A copy of Aadhar Card of Proprietor/ Partners/ Directors
DSC of Partners or Directors, in case of LLP and Company only
A copy of PAN Card of business entity
Copy of passport size photograph of the Proprietor/ Partners /Directors
Latest Electricity Bill/ Telephone Bill of the registered office address
Latest Bank Statement/ Copy of cancelled cheque/ copy of first page of passbook
Rent Agreement of the registered office should be provided if any
Entity should provide registration certificate with MoA- AoA / LLP Agreement or Partnership Deed as applicable
Who is required to apply for GST number?
Following are the general criteria of mandatory registration:
• If the total business turnover exceeds ₹ 40 Lakh/₹20 Lakh in case of business of goods/providing service respectively in the concerned financial year (Threshold for North-eastern States is ₹ 20 Lakh/ ₹ 10 Lakh in case of business of goods/providing service respectively)
• Casual taxable person / Non-Resident taxable person • Agents of a supplier & Input Service Distributor (ISD)
• Electronic Commerce Aggregator
• Person supplying through an E-commerce platform
In addition to above, there are certain other criteria when registration is mandatory. Apart from compulsory registration, one can also apply for GST registration voluntarily.
At which place, should I obtain registration for GST?
Can a person apply for single GST Registration for all the businesses, in case if the business is established in different States of the country?
What is the proof of registration under GST?
Who is exempted for GST Registration in India?
Following are the exclusions from the GST Registration:
• An agriculturist – for the purpose of agriculture
• Person exclusively supplying goods/ services not liable to tax or wholly exempted from Tax
• Services by any Court or Tribunal established under the law
• Services by an employee
• Services of funeral, burial, crematorium or mortuary, including transportation of the deceased
• Sale of land subject to Schedule 5 (ii)(b), sale of building
• Actionable claims, other than lottery, betting and gambling
• Person falling below threshold exemption limit prescribed
What are taxable events under the GST Act?
Which date is considered as the date of Supply for GST?
The time of supply of goods shall be earlier of the following:
(a) Date of issuing an invoice by the supplier or;
(b) Last Date by which s/he is required to issue invoice as per the prescribed time period or;
(c) Date on which the supplier enters a payment in his/her books of account or;
(d) Date on which the payment is credited to his/her bank account
The time of supply of services shall be earliest of the following: Case:1 Where an invoice is issued within the prescribed period
(a) Date of issue of invoice by supplier or;
(b) Date on which the supplier enters a payment in his/her books of account or;
(c) Date on which the payment is credited to his bank account
Case:2 Where an invoice is not issued within the prescribed period
(a) Date on which the service is provided or;
(b) Date on which the supplier enters a payment in his/her books of account or;
(c) Date on which the payment is credited to his/her bank account
In case of supplies of goods or services under reverse charge, the time of supply shall be earliest of the following:
(a) Date of receipt of goods (This applies only for supply of goods and not services) or;
(b) Date on which the payment is entered in the books of accounts of a recipient or;
(c) Date immediately following 30 days from the date of issue of invoice by the supplier.(In case of supply of service date immediately following 60 days from date of issue of invoice shall be considered)
What is the Government fee for online GST Registration in India?
When the returns have to be filed after GST Registration?
Registered dealers shall be required to file the following returns:
• Monthly Return: Every registered taxable person shall be required to e-file a monthly return for inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars within the due date prescribed for the respected month.
• Return for composition scheme: Dealers paying tax under the composition scheme shall have to file a return for each quarter or part, thereof, electronically within 18 days after the end of such quarter.
• TDS return: Every dealer who is required to deduct tax at source shall file a return electronically within 10 days after the end of the month in which the said deduction is made.
• Return for input service distributor: Every input service distributor shall file an e-return for every calendar month or part thereof, within the 13 days after the end of the particular month.
• First Return: Every registered taxable person paying the CGST/SGST on all intra-state supplies of goods and/or services shall have to file the first return from the date on which he/she became liable for registration till the end of the month in which the registration has been granted
• Annual return: An annual return will have to be filed for each financial year by every registered taxable person. This needs to be done on or before the 31st day of December, following the end of the particular financial year.
• Final return: Every registered taxable person who applies for a cancellation of his/her registration shall have to file a final return within 3 months of the date of cancellation or the date of cancellation order, whichever is later, in a prescribed form.
Do I need to file GST Returns, if I have applied for GST Registration Voluntarily?
What are the modes of payment for GST?
Payment for the tax or any penalty, fees, etc. shall be made via any of these payment modes:
• Internet Banking
• NEFT or RTGS
This amount shall be credited to the electronic cash ledger of the registered dealer.
How is the tax to be collected at source for e-commerce operator?
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