GST Registration

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GST Registration

The One Hundred and Twenty Second Amendment Bill of the Constitution of India, officially known as The Constitution (One Hundred and First Amendment) Act, 2016, introduced a national Goods and Services Tax in India from 1 July 2017.

The GST is a Value added Tax (VAT) proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It replaces all indirect taxes levied on goods and services by the Indian Central and state governments. It is aimed at being comprehensive for most goods and services.

Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in India on the supply of goods and services. GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer.

Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%. 32% However, Petroleum productsalcoholic drinks, electricity, are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax regime. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range

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 flowing taxes levied by the central and state governments.

The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of centre and all the states. GST is meant to replace a slew of indirect taxes with a federated tax and is therefore expected to reshape the country’s 2.4 trillion dollar economy, but not without criticism. Trucks’ travel time in interstate movement dropped by 20%, because of no interstate check posts.

Other services related to GST Registration

GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

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Any business registered under compositon scheme which wants to migrate to normal scheme or vice versa Any business that wants to cancel its GST registration Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration. Any business that wants to update following fields Authorised signatory details (Like phone number, Email ID) Additional place of business HSN / SAC, or any other mistake made during registration under GST ACT.

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After obtaining GST registration, sometimes a GST registration may need to be cancelled. Some of the most common reasons for cancellation of GST registration are closure of business, no requirement to pay GST, transfer of business, change in constitution and no business activity. Surrendering a GST registration will reduce the compliance requirement for the taxpayer, as GST returns would not longer have to be filed monthly. To cancel a GST registration, application must be submitted on the GST Common Portal in FORM GST REG-16 along with the required information. On submission of an application for cancellation of GST registration, the GST officer is required to verify the application and issue an order in FORM GST REG-19, within 30 days from the date of application.

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HSN is an 8-digit code for identifying the applicable rate of GST on different products as per CGST rules. If a company has turnover up to ₹1.5 Crore in the preceding financial year then they need not mention the HSN code while supplying goods on invoices. If a company has turnover more than ₹1.5 Crore but up to ₹5 Cr then they need to mention the first two digits of HSN code while supplying goods on invoices. If turnover crosses ₹5 Cr then they shall mention the first 4 digits of HSN code on invoices.

Goods And Services Tax GST Registration

We will assist you to get your business registered under GST Act,The single GST subsumed several taxes and levies which included: central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi. Other levies which were applicable on inter-state transportation of goods have also been done away with in GST regime.  GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services. India adopted a dual GST model, meaning that taxation is administered by both the Union and State Governments. Transactions made within a single state are levied with Central GST (CGST) by the Central Government and State GST (SGST) by the State governments. For inter-state transactions and imported goods or services, an Integrated GST (IGST) is levied by the Central Government. GST is a consumption-based tax/destination-based tax, therefore, taxes are paid to the state where the goods or services are consumed not the state in which they were produced. IGST complicates tax collection for State Governments by disabling them from collecting the tax owed to them directly from the Central Government. Under the previous system, a state would only have to deal with a single government in order to collect tax revenue.

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Amendment of Goods And Services Tax GST Registration

Any business registered under compositon scheme which wants to migrate to normal scheme or vice versa Any business that wants to cancel its GST registration Application for cancellation, in case of voluntary registrations made under GST, can be made only after one year from the date of registration. Any business that wants to update following fields Authorised signatory details (Like phone number, Email ID) Additional place of business HSN / SAC, or any other mistake made during registration under GST ACT.

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Cancel GST Registration

After obtaining GST registration, sometimes a GST registration may need to be cancelled. Some of the most common reasons for cancellation of GST registration are closure of business, no requirement to pay GST, transfer of business, change in constitution and no business activity. Surrendering a GST registration will reduce the compliance requirement for the taxpayer, as GST returns would not longer have to be filed monthly. To cancel a GST registration, application must be submitted on the GST Common Portal in FORM GST REG-16 along with the required information. On submission of an application for cancellation of GST registration, the GST officer is required to verify the application and issue an order in FORM GST REG-19, within 30 days from the date of application.

Best GST Software
Trusted by over 9,00,000+ Businesses, CAs, Tax Professionals
Billing, Accounting, Inventory Software.

Cancellation of GST registration simply means that the taxpayer will not be a GST registered person any more. He will not have to pay or collect GST.

  • By Tax Payer          1. If turnover is less than 40 lakhs          2. Other Case If Voluntary registration is done one can cancel GST Registration after oner year.
  • By Tax Officer        
  • By Legal heir in case of death of person running business.
  • The business has been discontinued
  • The business has been transferred fully, amalgamated, demerged or otherwise disposed —The transferee (or the new company from amalgamation/ demerger) has to get registered. The transferor will cancel its registration if it ceases to exist.
  • There is a change in the constitution of the business   (For example- Private limited company has changed to a public limited company)
Best GST Software
Trusted by over 9,00,000+ Businesses, CAs, Tax Professionals
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As per section 22 of the CGST Act, every supplier shall be liable to be registered under CGST Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds fourty lakh Rupees.

It is also provided that where such person makes taxable supplies of goods or services or both from any of the special category states, he shall be liable to be registered if his aggregate turnover in a financial year exceeds twenty lakh rupees.

A person who intends to obtain registration under GST however aggregate turnover of that person in a financial year does not exceed the specified limit (i.e. ten or twenty lakh rupees) may obtain voluntary registration under GST. Also, all provisions of this Act, as are applicable to a registered person, shall apply to such person. Where aggregate turnover is defined under section 2(6) of the CGST Act as given hereunder aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; Given the aforesaid key aspects taken in to consideration while computing aggregate turnover for the purpose of GST are

  1. The turnover is to be considered PAN-based. eg. If the Company having the presence in 2 or more state then the aggregate turnover of all state is to be considered for the purpose of applicability of GST.
  2. Aggregate turnover shall include and exclude

Include

  1. All taxable supplies
  2. Exempt supplies
  3. Exports of goods or services or both
  4. Inter-State supplies

Exclude

  1. The value of inward supplies on which tax is payable by a person on a reverse charge basis)
  2. Central tax, State tax, Union territory tax, integrated tax and cess

As per section 23 of the CGST Act, following persons are not liable to register under GST

  1. Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act
  2. An agriculturist, to the extent of supply of produce out of cultivation of land.

Hence, all other people if engaged in the supply of goods and services are liable to register compulsory if aggregate turnover in a financial year exceeds twenty lakhs and ten lakhs in a specified state.

Further, as per subclause 2 of Section 23 of the CGST Act, the Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.

Certain categories of the persons are liable for compulsory registration even the aggregate turnover is not more than twenty lakh as or ten lakh for specified state. In this regard, as per section 24 of the CGST Act, the persons given below are required to register compulsory even aggregate turnover does not exceed the specified limit.

  1. Persons making any inter-State taxable supply
  2. Casual taxable persons making a taxable supply
  3. Persons who are required to pay tax under reverse charge
  4. The person who is required to pay tax under sub-section (5) of section 9
  5. Non-resident taxable persons making a taxable supply
  6. Persons who are required to deduct tax under section 51, whether or not Separately registered under this Act
  7. Persons who make a taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
  8. Input Service Distributor, whether or not separately registered under this Act
  9. Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
  10. Every electronic commerce operator
  11. Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

Further the Government on the recommendations of the Council may be notified such other person or class of persons that are required to apply for compulsory registration.

As discussed aforesaid as per section 24 of the CGST Act, the persons making any inter-State taxable supply is liable to register under GST irrespective of aggregate turnover as specified for compulsory registration. However, as per notification 10/2017 – Integrated Tax specifies that the person making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year is exempted from obtaining registration. Hence, no compulsory registration for the unregistered dealer engaged in interstate supplies and having aggregate turnover up to Rs. 20 lacs or Rs.10 lacs in case of special category states.

Following are some of the key aspect which should be taken into consideration while registration

  1. Input Service Distributor shall make a separate application for registration as such Input Service Distributor.
  2. A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone developer shall make a separate application for registration as a business vertical distinct from his other units located outside the Special Economic Zone.
  3. Any person having multiple business verticals within a State or Union territory, requiring a separate registration for any of its business verticals has an option to take separate registration.
  4. A person required to deduct tax at source or to collect tax at source is required to make application in FORM GST REG-07.
  5. A non-resident taxable person shall electronically submit an application, along with a self-attested copy of his valid passport, for registration, duly signed or verified through electronic verification code in FORM GST REG-09.
  6. Any person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient shall electronically submit an application for registration in FORM GST REG-10,

Goods and Services Tax(GST) is a comprehensive tax levied on manufacture, trade and services across India. From 1st July, 2017 GST has replaced most of Centre and State imposed indirect taxes like VAT, Service Tax , Excise etc. Goods and Services Tax Identification Number (GSTIN) is a 15 digits state-wise PAN-based number to be used to identify businesses registered under GST. Click here to know your GSTIN.

GST regulations are applicable if your annual turnover is Rs. 40 lakh or above. In case of North Eastern states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura) and hilly regions i.e. Himachal Pradesh, Uttarakhand,Jammu & Kashmir and Sikkim, the threshold limit is Rs. 20 lakh.

Note: If you are selling your goods through online platforms like amazon, Flipkart etc, GST registration is mandatory.

An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act. Existing taxpayers include taxpayers already registered under :-

  • Central Excise
  • Service Tax
  • State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
  • Entry Tax
  • Luxury Tax
  • Entertainment Tax (except levied by the local bodies)

If you have multiple places of businesses in same state, you can get them all registered under a single GST registration application. Give the name of your registered business place as primary place of busienss, the other branches can be added as additional places of business at no additional cost. There is no limit on number of branches that you can add under a single GST registration application, provided all the branches are in same State.

When you occasionally make supply of goods/services as a principal or agent or any other capacity, in a taxable territory, where GST applies but you don’t have a fixed place of business in India. As per GST you will be treated as a non-resident taxable person. Key pointers:

  • Registration shall be valid for 90 days.
  • It can be further extended by 90 days.
  • An advance deposit of tax liability for the period of registration must be made. Additional tax must be deposited if extension of registration is sought.
  • This tax deposited shall be used like ‘input credit’.
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