Introduced on July 1, 2017, GST or Goods and Service Tax is seen as the most significant tax reform in the history of India. GST merged Central and State taxes into a single tax to improve the ease of doing business and widen the taxpayer base. Subject to certain conditions, GST registration is mandatory for manufacturers, traders, and service providers. GST has been implemented on the theme of One Nation One Tax and has tax slabs from a minimum of 0% to the Highest 28%.
Business entities whose turnover exceeds INR 40 Lacs (for Northeast and Hilly state 20 Lacs) are required to obtain a New GST Registration. However, the limit for the Service provider is still INR 20 Lacs. A certain category of Taxpayer u/s 24 of the CGST Act 2017 needs to register under GST irrespective of turnover compulsorily. It is in the best interest to determine upfront the requirements and eligibility criteria for the registration. It has ongoing compliances and further penalties for non-compliance, so it is advisable to understand the GST Provisions.
GST Registration Process can be initiated online through the GST portal, Provenience can help individuals and businesses in filing applications for GST.
The Central GST and the State GST are applicable to all transactions of goods and services made for a consideration, except for goods which are outside the purview of GST and exempted goods and services. Transactions between related persons and other activities of GST Schedule I will be treated as supply even if made without any consideration.
Exporters and Importers of both goods and services are compulsorily required to register under GST. A registered taxable person exporting goods or services shall be eligible to claim a refund of IGST paid or make Exports under bond or letter of undertaking without payment of IGST.
Under the Composition Scheme, a Business with a turnover of less than 1.5 Cr. can pay GST on concessional rates, and also have lesser compliances for fillings. However, a composition dealer cannot collect tax and cannot take credit of inward supplies.
One of the primary goals of a taxation system is to remove the cascading effect of the tax, i.e. No tax on tax already charged. Cascading effect of taxes is one of the major distortions of the Indian taxation regime. However, it has been completely removed in GST by seamless credit.
GST Registration applicability and necessity need to be checked.
Arrange to provide documents and information as per the list provided.
Generation of TRN (Temporary Reference Number)
GST Registration certificate will be provided.
Every supplier shall be liable to be registered under GST in the state from where he makes taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds threshold limit as the case may be
A few categories of Taxpayer need to take compulsory registration in respect of their turn over
GST offers a whole bunch of Benefits to businesses
Small businesses having turnover less than *1.5 Crore can opt for Composition Scheme subject to conditions and restriction. A composition dealer cannot collect tax from the buyer and cannot claim input credit for inward supply.
Yes, if a person is having businesses in different states, they need to get separate registration for each state under the same PAN.
No, GST Number is valid for lifetime until cancelled and no need to renew it every year.
Amendment in GST registration can be done online by logging into the portal. There are two types of amendment in GST portal
No, taxpayers who registered themselves voluntarily cannot apply for cancellation of GST. They can apply only after the expiry of one year.
GST has subsumed State VAT, Central Sales Tax , Luxury Tax, Entry Tax (all forms), Entertainment and Amusement Tax (except when levied by the local bodies), Taxes on advertisements, Purchase Tax, Taxes on lotteries, betting and gambling, State Surcharges, and Cesses so far as they relate to supply of goods and services. The main motive behind GST is to consolidate all indirect taxes into one.
In GST tax will be charged only on value addition and cascading effect will be removed by seamless credit.
No, without GST number, one cannot collect GST or claim tax input for GST paid by them.
You are required to apply for registration within 30 days of becoming liable for registration.
Yes, a PAN card is mandatory for registering under the GST act. However, the non-resident taxable person may get GST registration by submitting other documents as prescribed.
A casual taxable person is a person who occasionally supplies taxable goods or services. A business entity that has some events in different states for a brief period of time will be a casual taxable person.
The GST certificate issued to a casual taxable person is valid for a period of ninety days, which may be extended by the proper officer for a period, not more than ninety days.
It is not mandatory to open a current bank account for obtaining GST number.
No, it is not mandatory unless the threshold limit of Rs 20 lakhs is exceeded. However, if you are a brand selling goods or service under one brand name, then you are required to have a GST registration.
No, unless the income exceeds Rs 20 lakhs, bloggers are not required to apply for GST.
Yes, anyone who is not required by the law to opt for GST registration can also voluntarily opt for GST registration.
The new owner of the business will have to make a fresh application for a new GST registration. You can proceed and get your registration cancelled.