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Goods and Services Tax (GST) was rolled out in India with effect from 1st July 2017. GST is one of the greatest tax reforms in India. GST is Destination based Tax is a tax based on the destination or consumption of goods or services. It is different from Origin-based taxation because Origin-based tax is levied where goods or services are produced. In India, Dual GST Model is adopted. However, few matters are kept outside the purview of GST, such as follows: 1. Petroleum crude; 2. High-speed diesel; 3. Motor spirit (commonly known as petrol); 4. Natural gas 5. Aviation turbine fuel In respect of these goods, GST would apply from the date when recommended by the GST Council. VAT/ CST Continues on these products. Central Excise Duty continues to be levied on the manufacture of these products. State Excise Duty continues to be levied on the manufacture of alcohol. Tobacco attracts both Excise (By Centre) and GST. In addition, Tobacco and tobacco products are subjected to GST as well as Central Excise Tax. On Petroleum products imported, IGST is applicable. **Though electricity has not been explicitly excluded from GST, it is considered as Nil rated in GST and continues to be charged with pre-GST taxes, i.e., electricity duty by the State Governments. Goods & Service Tax Acts 2017:- GST comprises of: 1. Central Goods & Services Tax (CGST), levied by the Central Government, 2. State Goods and Services Tax (SGST), levied by the State Government, 3. Union Territory Goods and Services Tax (UTGST) levied by Union Territories, 4. Interstate supplies of taxable goods/services are subject to Integrated Goods & Services Tax (IGST), which is levied by the Central Government and is equal to CGST + SGST. Threshold limits:- Any Individual can be registered with GST on a voluntary basis However, certain threshold limits on Aggregate Turnover are provided as per the act; Limit of ₹ 10 Lakh for Supplier of goods and/or services: 1. Manipur, 2. Mizoram, 3. Nagaland, and 4. Tripura Limit of ₹ 20 Lakh for Supplier of goods and/or services: 1. Arunachal Pradesh 2. Meghalaya 3. Puducherry 4. Sikkim 5. Telangana 6. Uttarakhand Limit of ₹ 20 Lakh for Supplier of goods and/or services and limit of ₹ 40 lakh for suppliers of goods (Intra-state) 1. Jammu & Kashmir 2. Assam 3. Himachal Pradesh 4. And all other states **AGGREGATE TURNOVER WILL BE COMPUTED ON ALL INDIA BASES FOR THE SAME PAN, And Includes:- And excludes:- 1. CGST/SGST/UTGST/IGST/Cess, 2. Value of inward supplies on which tax is payable under reverse charge. Compulsorily registration applicable: – 1. Casual taxable persons. 2. Non-resident casual taxable persons. 3. Persons making any inter-state taxable supplies. 4. Agents acting on behalf of a registered taxpayer. 5. E-commerce operators. 6. TDS/TCS deductors. 7. Persons conducting business in a state other than the one they are located in. 8. Persons who sell products on e-commerce sites. 9. Individuals working in the import-export industry. 10. Persons subject to reverse charge taxation. 11. Businesses registered under previous taxes such as VAT, excise, and service tax. 12. Individuals running an aggregator company. 13. Enter Service Distributors. 14. OIDAR (Online Information Database Access and Retrieval) service providers in India. Procedure of GST Registration:- Documents Required:- 1. Passport Size Photograph (Proprietor/Partners in case of a Partnership Firm/ Designated Partners in case of LLP/ Directors in case of a company). 2. PAN Card (Proprietor/ Partnership Firm/LLP/Company). 3. Proof of Address of the Registered Place of Business. (Electricity Bill/ Utility Bill/Legal Ownership Document/ Municipal Khata Copy/ Property Tax Receipt) 4. Rent Agreement/ Lease Deed (In case of Rented/ Leased Property) 5. Non-Objection Certificate from the Owner of the Place of the Business Situated (in case of Consent/ Rented). 6. Bank Account Details (Statement/Cancelled Cheque /Passbook) 7. Address Proof of Proprietor (In case of Proprietorship) 8. Proof of Constitution of Business (Partnership Deed, in case of Partnership Firm/ Certificate of Incorporation in case of an LLP or a Company) 9. Proof of the Appointment of Authorized Signatory. (Board Resolution for Authorizing the Director or Managing Committee and Acceptance Letter in case of Company/ Letter of Authorization of Designated Partner in case of an LLP) Steps to Follow for Registration:- A. Access GST Portal -> https://www.gst.gov.in/ > Services -> Registration > New Registration option. B. Generate a TRN by Completing OTP Validation 1. The new GST registration page is displayed. Select the New Registration option. If the GST registration application remains incomplete, the applicant shall continue filling the application using TRN number. 2. Select the Taxpayer type from the options provided. 3. Choose the state as per the requirement. 4. Enter the legal name of the business/entity, as mentioned in the PAN database. (As the portal verifies the PAN automatically, the applicant should provide details as mentioned in the card.) 5. In the Permanent Account Number (PAN) field, enter the PAN. (PAN of the Proprietor in case of Proprietorship Firm/PAN of the firm in case of the Partnership Firm/ PAN of LLP in case of an LLP/ PAN of the Company in case of a Company) 6. Provide the valid email address of the Primary Authorized Signatory. 7. Click the PROCEED button. C. OTP Verification & TRN Generation On submission of the above information, the next step is the OTP Verification page. Hence, enter the two separate OTP sent to validate the email and mobile number. 1. In the Mobile OTP field, enter the OTP. 2. In the Email OTP field, enter the OTP. * OTP will be valid only for 10 minutes. On successfully completing OTP verification, a TRN will be generated. TRN will now be used to complete and submit the GST registration application.
Now, click on the icon marked in red to start the GST registration process. E. Submit Business Information Various information must be submitted for obtaining GST registration. In the first tab, business details must be submitted. 1. In the Trade Name field, enter the trade name of the business. 2. Enter the Type of Constitution of the Business from the drop-down list. 3. Enter the District and Sector/ Circle / Ward / Charge/ Unit from the drop-down list. 4. In the Commissionerate Code, Division Code and Range Code drop-down list, select the appropriate choice. 5. Applicant may choose the Composition Scheme, if applicable as per the act. 6. Enter the date of commencement of business. 7. For the Date on which liability to register arises, the applicant may choose the date of the beginning of the business, if the applicant is registering on a voluntary basis otherwise, this is the day the business crossed the aggregate turnover threshold for GST registration. **Taxpayers are required to file the application for new GST registration within 30 days from the date on which the liability to register arises. Further applicability of the rules can be referred as per the Act.
Read more at: https://taxguru.in/goods-and-service-tax/goods-service-tax-eligibility-threshold-limits-process-registration.html
Copyright © Taxguru.in
Read more at: https://taxguru.in/goods-and-service-tax/goods-service-tax-eligibility-threshold-limits-process-registration.html
Copyright © Taxguru.in
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