Learn More about GST
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04
input tax credit
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gst invoice
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E-Way Bill
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07
time place and valueof supply
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08
Composition scheme
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gst payment
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gst refund
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Penalties and appeals
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miscellaneous
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miscellaneous
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GST REGISTRATION
What is GST Registration
Any supplier of goods and service Provider of services who makes a taxable supply with an aggregate turnover of over Rs.40 lakhs in a financial year is required to obtain GST registration. In special category states, the aggregate turnover criteria is set at Rs.20 lakhs.
In simple words Every business whose taxable supply of goods or services under GST (Goods and Service Tax) and whose turnover exceeds the threshold limit of Rs. 40 lakh / 20 Lakh as applicable will be required to register as a normal taxable person. This process of registration is called GST registration.
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Voluntary GST Registration
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Any person or entity irrespective of business turnover can obtain GST registration at any-time. Hence, GST registration is obtained by many businesses in spite of not reaching the aggregate turnover limit. Some of the main reasons for obtaining voluntary GST registration are:
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To improve the business credibility
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To satisfy the requirements of B2B customers
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To claim input tax credit benefits
Related Topics
Liability for GST Registration
The threshold limit for turnover beyond which a taxable person will be liable to apply for GST registration is as follows -
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Special category states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) – INR 10 lakhs
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Rest of India – INR 20 lakhs
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All existing dealers registered with any of the current laws (VAT/Excise/Service Tax) will also need to register under GST by default.
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Important Note: The turnover considered here is the aggregate pan-India turnover (including value of taxable, exempt and export supplies) of a business entity, and not state-wise.
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Mandatory GST Registration
As per the Goods & Service Tax registration guidelines, the following categories of suppliers need to mandatorily register irrespective of turnover:
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Taxable person carrying on interstate supplies
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Casual and non-resident taxable persons
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Businesses liable to pay tax under reverse charge
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Agents supplying on behalf of a taxable person
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Input service distributor
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Sellers on e-commerce platforms
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All e-commerce operators
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Person supplying online information and database access or retrieval services from outside India to an unregistered person in India
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Persons responsible to deduct TDS
Documents Required for GST Registration
GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.
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And also following documents required for GST registration
Constitution of Business
Proof of Constitution
(Any one in each section)
Constitution of Business:
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Principle Place of Business
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Partnership Deed
Registration Certificate
Any Proof substantiating Constitution
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Memorandum of Association (MOA) /Articles of Association (AOA)
Municipal Khata copy
Property Tax Receipt
Electricity bill copy
Rent/ Lease agreement
Legal ownership document/Certificate issued by Govt.
Bank statemnet
Legal ownership document
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Letter of Authorization
Copy of Resolution passed by Board of Directors / Managing Committee and Acceptance letter
Photo
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Bank Statement
First page of Pass Book
Cancelled Cheque
Any document issued by Bank on this behalf
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Any other Supporting Documents
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Details of Authorized Signature
Details of Bank Accounts
Others
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Size
Format
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All above documents Maximum file Size allowed is 1 MB and File Type must be JPEG/PDF only
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In case you are unable to upload any document, check the Internet connectivity, file size and format of the document you are trying to upload
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Class 2 type of Digital Signatures are required for GST registration of authorized person for company/LLP
GST Registration Procedure for Existing Dealers
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All the dealers registered under existing law and having a PAN, shall access the common GST portal and enrol by validating his e-mail ID and Mobile Number
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Upon enrolment for GST, a dealer will be allotted with a provisional certificate of registration inForm GST REG-25. If a dealer has obtained multiple registration on the basis of single PAN under existing law, such dealer will be granted only one provisional Registration. In case of centralized registration under Service Tax, a dealer will be granted with single provisional registration in the state or union territory in which the he was registered earlier.
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Within 3 months, dealers are required to submitForm GST REG-24 in the GST Portal along with information and GST registration documents as prescribed.
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If the information provided is complete and satisfactory, final registration certificate will be issued in Form GST REG-06.
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If the details submitted are not satisfactory, a show cause notice will be issued in Form GST REG-27, and there will be a hearing before cancelling the provisional registration. If the show cause hearing is not successful, or if the details are not provided within the stipulated period, the provisional registration allotted in Form GST REG-25 will be cancelled by issuing an order in Form GST REG-26.
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During transition, if a taxable person is not required to register under GST, but was previously registered (Central and State law), he has an option to cancel the provisional registration issued by submitting the Form GST REG-28.
For New Businesses / New GST Registrations
Whether one is a regular dealer or a composite tax payer, one needs to do the following for obtaining new GST registration:
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Fill Part-A of Form GST REG-01. Provide PAN, mobile number, and E-mail ID, and submit the form.
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The PAN is verified on the GST Portal. Mobile number, and E-mail ID are verified with a one-time password (OTP).
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One will receive an application reference number on one's mobile and via E-mail.
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Fill Part- B of Form GST REG-01 and specify the application reference number received. Attach other required documents and submit the form. Following is the list of documents to be uploaded –
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Photographs: Photographs of proprietor, partners, managing trustee, committee etc. and authorized signatory
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Constitution of taxpayer : Partnership deed, registration certificate or other proof of constitution
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Proof of principal / additional place of business :
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For own premises – Any document in support of the ownership of the premises like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
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For rented or leased premises – copy of rent / lease agreement along with owner's (landlord) documents like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
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Bank account related proof : Scanned copy of the first page of bank pass book or bank statement
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Authorization forms: For each authorized signatory, upload authorization copy or a copy of resolution of managing committee or board of directors in the prescribed format.
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If additional information is required, Form GST REG-03 will be issued. One needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
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If one have provided all required information via Form GST REG-01 or Form GST REG-04, a certificate of registration in Form GST REG-06 will be issued within 3 days from date of receipt of Form GST REG-01 or Form GST REG-04.
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If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.
For Other Stakeholders
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Form GST REG-07 :- Application for Registration as Tax Deductor or Tax Collector at Source
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Form GST REG-08 :- Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source
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Form GST REG-09 :- Application for Registration for Non Resident Taxable Person
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Form GST REG-09AApplication for registration for a person supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient
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Form GST REG-10 :- Application for extension of period of operation by Casual Taxable person and Non-Resident Taxable Person
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Form GST REG-12 :- Application for allotment of Unique ID to UN organizations or Multilateral Financial Institution or any other class of person as notified by the commissioner
Separate Registration for each State v/s GST Registration Eligibility
From the results derived at Analysis 2, it clearly means that for each state for which the supplier is liable for registration, the supplier will have to take a separate registration even though he may be supplying goods or services or both from more than one State as a single entity.
Multiple Business Verticals and Eligibility for GST Registration
A person having multiple business verticals in one State may obtain separate registrations for each of the business vertical, subject to prescribed conditions to be eligible for GST Registration.
For this purpose a business vertical to means:
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a. Distinguishable component of an enterprise
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b. That is engaged in the supply of individual goods or services or a group of related goods or services
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c. Which is subject to risks and returns that are different from those of the other business verticals
Amending GST Registration Details
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Any change in details furnished at the time of registration must be submitted within 15 days from the date of such changes in Form GST REG-13.
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Specific changes in Form GST REG-11 relating to the name of the business, partner details, managing committee, and so on, require approval from an officer. After verification, an approval order by the officer is sent in Form GST REG-14 to amend the details.
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Changes in business details that result in change of PAN number of the registered tax payer, require a fresh registration in Form GST REG-01.
Cancellation of GST Registration
Applying for Cancellation of Online GST Registration
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A registered taxable person seeking cancellation of registration, should submit Form GST REG-14 along with details of closing stock (Inputs, Semi finished goods, finished goods and capital goods), tax liability and tax payment along with relevant documents within 30 days.
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A taxable person who has voluntarily registered is allowed to apply for cancellation only after completion of 1 year of registration
Cancellation of GST Registration by an officer
The registration granted to a taxable person will be cancelled by officer under following cases:
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Business is not conducted from the declared place of business
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Invoice or bill is issued without supply of goods or services in violation of the provisions of this Act, or the rules
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A Regular dealer has not furnished returns for consecutive 6 months / A Composition dealer has not furnished returns for 3 consecutive quarters
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Business discontinued, amalgamated with other entity, demerger
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Change in constitution of business
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Registration has been obtained by means of fraud, wilful misstatement or Suppression of facts etc.
GST Registration Cancellation process
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A notice in Form GST REG-16 will be issued to the taxable person to show cause Within 7 days, the taxable person need to respond to the notice as Why his registration should not be cancelled in Form GST REG 17
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If the reply is found to be satisfactory, the officer will drop the cancellation proceedings by issuing an order in Form GST REG-19. If the details are not satisfactory, the officer will issue an order in Form GST REG 18 for cancelling the registration within 30 days from the date of show cause
Revoking a Cancelled GST Registration
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In case the registration is cancelled by an officer, a taxable person can apply for revocation by submitting Form GST REG-20 within 30 days from date of cancellation order
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If the officer is satisfied, the cancellation is revoked by issuing an order in Form GST REG-21 within 30 days from date of such application
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If the officer is not satisfied, the revocation application is rejected in Form GST REG-5. Prior to this rejection, the taxable person will be issued a show cause notice in Form GST REG-22 and the taxable person need reply within 7 working days with the details as Why the application submitted for revocation should not be rejected in Form GST REG-23
Penalty for not registering under GST
An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000.
The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes
GST transition
The conditions to carry forward the Cenvat Credit/ ITC belonging to the ‘Old Tax Regime’ to the ‘GST regime’ are as follows:
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Migration of Existing Tax payers
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Input Tax Credit
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Provision Related to Job Work
Migration of existing tax payers:
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Every person registered under any of the earlier laws shall be issued a certificate of registration on a provisional basis.
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Such Provisional certificate of registration shall be valid for a period of six months (or extended period on notification) from the date of its issue. Final registration certificate will be issued on furnishing requisite information and documents.
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The certificate of registration issued to a person may be cancelled if such person fails to furnish, within the time specified.
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If person wants to take use the option for composition scheme, he may proceed with requisite information and application for such option.
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The certificate of registration issued to a person shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration.
Input Tax Credit
A.Closing balance of the credit in the last returns:
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The closing balance of the CENVAT credit /VAT in the last returns filed under the existing law
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The credit will be available only if the returns for the last 6-months were filed in the previous regime
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GST TRAN 1 is required to be filed within 90 days from 1/JUL/2017 or within such extended time
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TRAN 1 can be rectified only once
B.Un-availed credit on capital goods
Un-utilized credit available on the capital goods can be carried forwarded to GST by entering the details in Form TRAN 1
C.Credit on Stock
A registered taxable person, other than the manufacturer or service provider, may have duty paid goods in his stock, Such credit can be taken as under:
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The dealer has to declare the stock of duty paid goods on the common portal
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Credit shall be taken on the basis of invoice evidencing payment of duty of excise or VAT
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Such invoices should be less than one-year old
For traders who do not have invoice:
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Manufacturers or service providers who do not have an invoice evidencing payment of duty, cannot claim the credit under the GST regime
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It is available to traders only,subject to the following conditions;
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The scheme is operative only for six months
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The benefit of such credit is passed on to the customer by way of reduced prices.
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Stocks stored should be easily identifiable
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The statement of (From GST TRAN-2) supply of such goods in each of the six tax periods has to be submit.
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Chart of Input Tax Credit Available
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Rate of GST on Goods
Less than 18%
Intra-state Credit to CGST
Inter-state Credit to IGST
40%
20%
18 % or more
60%
30%
D.Tax paid under the existing law /composition scheme
A registered person-
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Paying Tax at a fixed rate
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Paying a fixed amount in lieu of tax payable
shall be entitled to take, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day
Condition:
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Such inputs or goods are used or intended to be used for making taxable supplies under this Act
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The said registered person is not paying tax under Composition Scheme
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Registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law
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Such invoice or Document not earlier than twelve months
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E.ITC in case of Centralised Registration under service tax
Credit May be taken and Carried forward in GST
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Conditions:
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Returns Shall be filed within 3 Months from Appointed Day
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Credit Carried Forward shall be eligible under GST law
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Credit may be transferred to any registered taxable person having the same PAN for which centralized registration was obtained under existing law
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This section does not prevent upward revision of credits. However, in respect of downward revision of credits such lower credits alone shall be permitted.
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The application in FORM TRAN-1 shall specify separately the details of stock held on the appointed day up to 6 tax periods indicating the details of supplies effected during each tax period.
JOBWORK
If any inputs , Semi Finished Goods and Finished Goods sent to Job worker or for further processing, testing, repairing, etc in such cases:
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No Such Tax payable if the goods-
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Goods returned within 6 month by job worker from 01/07/2017 ( or Extended Period Further 2 Month )
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Both manufacturer and job worker must have to declare such goods in Form GST Trans – 1 within 90 days from 01/07/2017.
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Input tax credit will be recovered if the goods are not returned within 6 months
Other Cases
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Input Tax Credit of CENVAT/VAT in respect of input, semi-finished and finished goods in stock attributable to exempted goods or services which are now taxable can also be taken in the same manner.
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CENVAT credit reversed on account of non-payment of consideration within three months can be reclaimed if payment is made to the supplier of service within 3 months from 1st July, 2017
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Input/input services in transit may take credit of eligible duties and taxes, provided the invoice has been recorded in the books within 30 days from 1st July, 2017
GST returns
GST return is a document that will contain all the details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). Once you file GST returns, you will need to pay the resulting tax liability (money that you owe the government)
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The details of each of these GST return formats, along with details of applicability and periodicity, are as follows
Regular Businesses
Return Type
Frequency
Due Date
Particulars
GSTR-1
Monthly
11th* of the next month with effect from October 2018
*Previously, the due date was 10th
Furnish details of outward supplies of taxable goods and/or services affected
GSTR-2
Monthly
15th of the next month
Details of inward supplies of taxable goods and/or services affected claiming the input tax credit.
GSTR-3
Monthly
20th of the next month
Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax
GSTR-3B
Monthly
20th of the next month
Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer
Suspended
Suspended
GSTR-9
Annually
31st December of next financial year
Annual Return for a Normal Taxpayer
GSTR-9C
Annually
31st December of next financial year
Reconciliation Statement – audited annual accounts and a reconciliation statement, duly certified
aggregate turnover exceeds Rs. 2 crores in FY
UPDATE: 28th GST council meet held on 21st of July 2018 has introduced a simple GST return filing system for the taxpayers.
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The government has introduced Sahaj and Sugam forms for filing GST returns.
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Composite Tax Payer
Return Type
Frequency
Due Date
Particulars
GSTR-4
Quarterly
18th of the month succeeding quarter
Return for a taxpayer registered under the composition levy
GSTR-9A
Annually
31st December of next financial year
Annual Return a taxpayer registered under the composition levy anytime during the year
Non-resident foreign taxpayers
Return Type
Frequency
Due Date
Particulars
GSTR-5
Monthly
20th of the next month
Variable return for Non-resident foreign taxpayers (It contains the details of the taxpayer, period of return and invoice details of all goods and services sold and purchased (this also includes imports) by the tax payer on Indian soil for the registered period/month).
Input Service Distributor
Return Type
Frequency
Due Date
Particulars
GSTR-6
Monthly
13th of the next month
Furnish the details of input credit distributed
Tax Deductor
Return Type
Frequency
Due Date
Particulars
GSTR-7
Monthly
10th of the next month
Furnish the details of TDS deducted
E-commerce Operator
Return Type
Frequency
Due Date
Particulars
GSTR-8
10th of the next month
Details of supplies effected through e-commerce operator and the amount of tax collected
GSTR-9B
Annually
31st December of next financial year
Annual statemen containing the details of outward supplies of goods or services or both effected through an e-commerce operator
Monthly
UIN Holders
Return Type
Frequency
Due Date
Particulars
GSTR-11
Monthly
28th of the month following the month for which statement is filed
Details of inward supplies to be furnished by a person having UIN and claiming a refund
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Form GSTR-10 is furnished by taxable persons whose registration has been surrendered or cancelled
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Within three months of the date of cancellation or date of cancellation order, whichever is later
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Furnish details of inputs and capital goods held, tax paid and payable
Final Return
Amendments
Return Type
Particulars
GSTR-1A
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Details of outward supplies as added, corrected or deleted by the recipient in Form GSTR-2 will be made available to supplier
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This can be filed between 15th and 17th of the following month.
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Auto-drafted Returns
Return Type
Particulars
GSTR-2A
An auto drafted tax return for purchases and inward supplies made by a taxpayer that is automatically compiled by the GSTN based on the information present within the GSTR-1 of his/her suppliers.
GSTR-4A
Quarterly purchase-related tax return for composition dealers. It’s automatically generated by the GSTN portal based on the information furnished in the GSTR-1, GSTR-5, and GSTR-7 of your suppliers.
Tax Notice
Return Type
Particulars
GSTR-3A
Tax notice issued by the tax authority to a defaulter who has failed to file monthly GST returns on time
Late Filing Return:
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Return filing is mandatory under GST. Even if there is no transaction, you must file a Nil return
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According to the GST Penalty regulations, an interest will be charged at the rate of 18 percent per annum from the taxpayers who fail to pay their taxes on time. The interest will be levied for the days after the due date
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As per GST Act Late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late fee on IGST
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The late filing fee of the GSTR-1 is populated in the liability ledger of GSTR-3B filed immediately after such delay
Note:
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All Newly migrated GST taxpayers will have to file GSTR 3B from July 2017 to February 2019 till 31st March 2019
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The late fee shall be completely waived for all taxpayers in case of GSTR-3B for the time period of months/quarters July 2017 to September 2018, which are furnished after 22nd December 2018 but on or before 31st March 2019