Registration under GST

Under this blog today we are going to understand the provisions of GST Registration in details. The whole cycle of GST (Good and Service Tax) implementation and compliance begins with requirement of GST Registration. A person can take voluntary registration for GST, But if the turnover exceeds the below define limit the person becomes liable to get GST Registration.

A.   Persons Liable for Registration (Section 22)

Sec. 22 of the CGST (Central Goods and Service Tax) ACT states the limit for GST registration. Once you exceed the limit you are liable to get GST registration. As per the decisions of the 32th GST Council Meeting, the limit for GST registration for both service provider and traders has been aroused from the previous limit of Rupees Twenty Lakh (₹ 20,00,000) for normal category states & Rupees Ten Lakh ( ₹ 10,00,000) for special category states w.e.f 1^st April 2019. Now a person has to take GST Registration if his turnover exceed the limits as below :-

For Trader/Manufacturer Provider :
-       Normal Category states	Turnover Exceed ₹ 40 Lakhs
-       Special Category states : 1)    Arunachal Pradesh 2)    Assam 3)    Jammu & Kashmir 4)    Manipur 5)    Meghalaya 6)    Mizoram 7)    Nagaland 8)    Sikkim 9)    Tripura 10) Himachal Pradesh 11) Uttarakhand	Turnover Exceed ₹ 20 Lakhs
For service Provider :
-       All category states	Turnover/Gross Receipts Exceed ₹ 20 Lakhs

B.   Compulsory registration in certain Cases (Section 24)

Sec 24 of the CGST (Central Goods and Service Tax) ACT, The following persons need to take registration under GST compulsorily if they are making taxable of goods and services :

1.    Doing inter-state sales.

2.    Casual taxable person.

3.    Required to pay Tax under Reverse charge mechanism (RCM).

4.    Required to pay tax U/S. 9 (5) of the act i.e. E-Commerce Operates.

5.  Every E-Commerce Operates who all require to deduct TDS (Tax deducted at source).

6.    Suppliers supplying through E-Commerce Operates who require  to deduct TDS.

7.    Non Resident making taxable supply.

8.    Required to deduct TDS.

9.    Supplying on behalf of other taxable person like agent or other.

10.  ISD (Input Service Distributor).

11.  Non registered person providing online information & database related service to person in India.

12.  Such other person as notified by the council from time to time.

C.   Persons Not Liable for Registration (Section 23)

Sec. 23 of the CGST (Central Goods and Service Tax) ACT states the persons who are not required to get GST registration. They are :-

1.    Persons providing non taxable and exempt goods and services.

2.    Agriculturist* supplying there non-processed produce.

3.    Such other person as notified by the council from time to time.

D.   Composite Scheme (Section 10)

Sec. 10 of the CGST (Central Goods and Service Tax) ACT states everything about Composition scheme. There are also composition rules and notification which amended the eligibility for registration for composition scheme. One person has to fulfill the eligibilities to get registration under GST. A person whose aggregate turnover in the preceding financial year (F.Y.) did not exceed ₹ 1,50,00,000 (Rupees One Crore Fifty Lakhs) may opt for composition scheme. The limit for the specified states is ₹ 75,00,000 (Rupees Seventy Fifty Lakhs). I have written a separate blog with complete details about composition scheme, go and check for further information https://taxolawgywithpriyankatiwari.blogspot.com/2020/02/composition-scheme-blessing-for-small.html

Time Limit for Registration (Section 25)

Sec. 25 of the CGST (Central Goods and Service Tax) ACT states time limit for applying for GST registration. The below table explains it in simplified manner.

Category	Time Limit
Persons falling under Section 22 & 24	30 days from the date of exceeding the limit
Casual Taxable Person** or Taxable Non resident	5 days prior to the commencement of business

* Agriculturist (Section 2 Clause 7)

Agriculturist means an individual or a Hindu Undivided Family who undertakes cultivation of Land –

(a)  By own labour, or

(b)  By the labour of Family,or

(c)  By servants on wages payable in cash or kind or by hired labour under personal supervision or personal supervision of any member of family;

Here point to be noted is that land can be of any other person or in the name of any other person then the agriculturist. 

** Casual Taxable Person (Section 2 Clause 20)

Casual taxable person means a person who occasionally undertakes transactions involving supply of goods or service or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a state or union territory where he has no fixed place of business.

Mode of registration

The easiest mode of registration is online mode, through the website https://www.gst.gov.in . But one can also go to any “GST Suvidha Kendra” run by government with their documents and get the registration done.

Document and other requirements for registration

1. PAN (Permanent Account Number)

2. One Mobile No. and Email ID

3. Aadhar

4. One Bank Account to link

5. Photo of Stakeholder (Promoter / Partner) : Photo of the Promoter/ Partner

6. Photo of the Authorised Signatory : Photo

7. Proof of Appointment of Authorised Signatory (Any One) : Letter of Authorisation, Copy of Resolution passed by BOD/ Managing Committee and Acceptance letter

8. Proof of Principal Place of business (Any One) : Electricity Bill, Legal ownership document, Municipal Khata Copy and Property Tax Receipt

This is a complete blog over GST Registration and requirements. Tried to provide all details in the précised manner. I hope this blog has provided useful detailed to you. If you find this blog useful please do share with your friends and family. Feel free to leave your views, comments and queries in the comment section below.

Disclaimer :

The above blog is purely for educational and  guidance purpose. It's just the reflection of the author's personal experience and judgment. The author has just provided the general information & understanding and its not at all an alternative of any legal advice or practitioner. It has no connection with the websites mentioned in its contents. The content stated in the blog should be used by the reader at his own discretion and sole responsibility. The content of the blog can be only used for any other document, write-up, article, blog and any written or printed material whether on paper or digitally in any form, with the prior permission of the author.

Understand GST for Business : GST Taxation Factors

GST, such a sweet-sounding abbreviation but apparently it’s a heap of complication and amendments. It’s already more than two and a half years since the enactment of Good and service tax (GST). But still people find it difficult to incorporate there business according to GST. I very often get questions like “what is GST”, “What is CGST, SGCT, IGST” and “how to accommodate our business according to GST” etc. And almost everybody understands it, credit goes to media but as knowledge is of the surface facts they get confused.  

With this blog I’am going to start explaining the fundamental of GST. Which will make the reader to understand GST and all it application related fundamentals very easily with law based facts. I would be writing in series many blogs to link and build a chain of clarity. This will guide one to operate business with more clarity. Here I’am not trying to portray the history and incarnation of GST as you can get it very easily anywhere. Here I’am to provide practical edge to reader nothing else, in precise manner.

GST and Taxation Factors

GST stands for Goods and Service Tax. It is a destination based tax which means that tax is charged based on the place of supply of goods and services. Ones you are liable for GST registration or have taken it, you need to think with prospective of GST taxation factors.  So the chargeability/levy of GST arises when there is “Supply of Goods and Services”. The liability to pay GST arises at the “Time of Supply”. The tax to be charged based on where the “Place of Supply” is, like Inter-state, Intra-state etc. Many a times the place of supply is the “Location of Supplier”. The tax is charged over the “Value of Taxable Supply”. “Reporting” of supply made or received is done on regular intervals in the form of “Returns”. If one has an understanding of each of the above high-lighted phenomenon then they can enjoy an ease in operating there businesses under GST regime. 

GST Taxation Factor

GST TAXATION FACTORS

1. Registration - with the registration under GST the liability for the GST Compliance evokes. The registration can be voluntary, required or compulsory. One must be really aware of the limit which make them liable to get GST Registration.Just after getting registration whether the business is running or not, one is bound to do certain formalities like return filing on regular intervals.  We are going to discuss registration requirements under GST in detail in a separate blog, the link is https://taxolawgywithpriyankatiwari.blogspot.com/search/label/GST%20Registration

2.   Supply – Supply in layman sense is simply sale or transfer for a consideration. GST is charged on supply of good and services. But supply under GST has a far wider scope. Many a time the transaction without consideration are also considered as supply. All these facts are further explained in detail in another blog and the link is https://taxolawgywithpriyankatiwari.blogspot.com/2020/03/scope-of-supply-under-gst.html

3.  Time of Supply – Time of supply means the point of time when the goods are considered to be supplied or services are considered to be provided. Levy of GST and liability to pay GST arises at the point of supply. Time of supply of goods and time of supply of services are explained separately in the Act. This we will be discussing in a separate blog.

4. Place of supply – Place of supply helps to find out that the transaction is Interstate on Intrastate. This defining of Interstate or Intrastate helps to define the charging of CGST (Central Goods and Service Tax), SGST (State Goods and Service Tax) or IGST (Integrated Goods and Service Tax). Many a time place of supplier or other places are taken as place of supply due to the facts of the transaction as per Act.

5.  Valuation – Valuation means Valuing of Taxable Supply. This defines how the consideration for a transaction is to be calculated. It States what is to be included in the consideration and what to be excluded. There are valuation rules as well to calculate value in special circumstances.

6.    Reporting – Under GST reporting plays a very significant role. Reporting is done in the form of returns. Like currently returns for business are filled in GSTR 1 AND GSTR 3B. GSTR 1 is filled on monthly bases for persons having aggregate turnover more than ₹ 1,50,00,000 (Rupees one crore fifty lakhs) and for others it’s on monthly bases. GSTR 3B is to be filled on monthly bases. Returns are to be filled in regular intervals to ensure proper compliance, and non compliance shall attract huge penalties and other severe punishments.

      By considering the GST taxation factors one can operate their business effectively under GST Regime without much difficulty. With this blog I have tried to provide you the practical knowledge to operate your business effectively. I hope this blog has provided useful detailed to you. If you find this blog useful please do share with your friends and family. Feel free to leave your views, comments and queries in the comment section below.

Disclaimer :

The above blog is purely for educational and  guidance purpose. It's just the reflection of the author's personal experience and judgment. The author has just provided the general information & understanding and its not at all an alternative of any legal advice or practitioner. It has no connection with the websites mentioned in its contents. The content stated in the blog should be used by the reader at his own discretion and sole responsibility. The content of the blog can be only used for any other document, write-up, article, blog and any written or printed material whether on paper or digitally in any form, with the prior permission of the author.