GST is an indirect tax that has replaced many other indirect taxes and levies in India, such as excise duty, services tax, additional Custom duty, Value Added Tax, Surcharges. The Goods and Services Tax (GST) is a tax on goods and services consumed in India. GST was implemented with effect from 01.07.2017 based on the Goods and Service Tax Act passed by the Indian Parliament on March 29, 2017. GST has been levied keeping in mind the objective of ‘one nation one tax’.
There are three components under Goods and Service Tax Regime. These are Centarl Goods and Services Tax (CGST), State Goods and Services Tax (SGST) and Integrated Goods and Services Tax (IGST). CGST and SGST shall be levied on Intra state supply of goods and services or both, and IGST shall be levied on Inter state supply of goods and services or both.
Taxable event shall be “supply of goods or services or both”. It is an event the occurrence of which attracts the liability to tax.
“Taxable supply” means a supply of goods or services or both which is leviable to tax under theCGST Act, 2017.
As per section 2 of CGST Act, 2017 a “Taxable person” means a person registered or liable to be registered under section 22 or section 24.
GST registration can be obtained voluntarily by any person or entity, irrespective of turnover. However, as per Section 22 of CGST Act, 2017 every supplier is liable for mandatory registration if his aggregate turnover in a financial year exceeds the following limits:
Rs. 10 lakh: In case of supply of goods or services from any of the specified special category states
Rs. 20 lakh: In case of supply of goods or services from other than specified special category states
Aggregate Turnover: Aggregate turnover = (Taxable supplies + Exempt Supplies + Exports of goods or services or both + Inter-State Supplies) – (Taxes + Value of Inward Supplies + Value of Inward Supplies taxable under Reverse Charge + Value of Non-Taxable Supplies). Aggregate turnover is calculated based on the Peremanent Account Number. Hence, even if one person has multiple places of business and has the same PAN, it must be summed to arrive at the aggregate turnover.
Special Category States: States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
For supply of goods: As per notification No.10/2019 – Central Tax w.e.f. 01/04/2019, any person engaged in the exclusive supply of goods whose aggregate turnover is more than Rs.40 lakhs in a year must obtain GST registration. To be eligible for the Rs.40 lakhs turnover limit, the supplier must satisfy the following conditions:
If the above conditions are not fulfilled, the supplier of goods would be required to obtain GST registration when the turnover in a financial year exceeds Rs.20 lakhs (for normal category states) and Rs.10 lakhs (for special category states).
As per Section 24 of CGST Act, 2017, the following categories of persons are required to obtain mandatory registration:
All persons who are making inter – state taxable supply of goods or services or both are liable to seek registration mandatorily even if the value of such taxable supply is less than the exemption limit.
Casual Taxable Person
Casual taxable person who are making taxable supply of goods or services or both are liable to seek registration mandatorily even if the value of such taxable supply is less than the exemption limit.
“Reverse charge” means a mechanism under which the liability to pay tax is on the recipient of the taxable supply rather than on the supplier of taxable supplies. Therefore, any person liable to pay tax under reverse charge shall be required to get himself registered irrespective of the fact that he is making supplies that are not subject to tax under GST.
“Electronic commerce Operator” means a person who owns, operates, manages the electronic facility or platform for electronic commerce. Therefore, they are liable to seek compulsory registration under GST irrespective of the value of such supply.
Non – Resident taxable persons are liable to seek compulsory registration under GST irrespective of the value of such supply.
Persons who are required to deduct tax
Persons who are required to deduct tax under Section 51 of CGST Act, 2017 are liable to seek registration mandatorily.
Section 51(1) provides that the Government may mandate any department or establishment of the Central Government or the State Government or, local authority or, government agencies or, such persons or category of persons as may be notified by the government to deduct tax at the effective rate of 2% (1% each under CGST Act and SGST Act) from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contarct, exceeds Rs. 250000.
Input service distributor means an entity registered under GST and which will receive the tax invoices towards receipt of input services and will further distribute the input tax credit availed on such services to the various supplier units (having the same PAN) proportionately.
Further, it means that an office will have two registrations one normal for making taxable supplies and another as ISD to distribute credits.
Further more, different offices of a tax payer can apply for ISD registration for all such different offices. Supplier with a PAN having more than one registration can have more than one registration as ISD also.
Every person supplying online Information and database access and retrieval services (OIDAR services) from a place outside India to a non – taxable online recipient has to obtain registration mandatorily irrespective of the value of his supply mandatorily.
As per Section 2(16) of the IGST Act , 2017 a Non-Taxable Online Recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory.
Option of voulntary registration
A person may opt for voluntary registration under Section 25 of CGST Act, where he is not liable to be registered in terms of Section 22 or Section 24 as discussed above. Once a person applies for voluntary registration, all the provisions of the CGST Act relating to a registered person shall apply to him.
Sole
proprietor / Individual
Partnership Firms and LLP
HUF
Company (Public and Private) (Indian and foreign)
Society/ Trust/ Club
*Bank account details: For bank account details, a copy of cancelled cheque or extract of passbook/bank statement (containing the first and last page) must be uploaded (in JPEG format / PDF format, maximum size – 100 KB)
**Address proof: Upload any one of the following documents as address proof:
1. Property tax receipt
2. Municipal khata copy
3. Electricity bill copy
4. Ownership deed/document (in case of owned property)
5. Lease/ Rent agreement (in case of leased/rented property) – to be submitted along with (1),(2) or (3)
6. Consent letter/NOC from the owner (in case of consent arrangement or shared property) – to be submited along with (1),(2) or (3)
Before GST was implemented, all dealers registered under the state VAT law were assigned a unique TIN number by the respective state tax authorities. Similarly, service providers were assigned a service tax registration number by the Central Board of Indirect taxes and Custom (CBIC).
Under the GST regime, all registered taxpayers are assigned a unique Goods and Services Tax Identification Number, popularly known as GSTIN. Obtaing GSTIN is a part of GST registration process.
Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). It is provided free of cost.
Its structure is as follows:
GST Certificate is issued to people who are registered under GST. Those with GST registration certificates are mandatorily required to display the same prominently at their place of business. Downloading GST certificate is an easy process through the GST Portal. Login to the GST Account and and go to User Services. In User Services, click on View / Download Certificate to download GST registration certificate.
For obtaining GST registration and GSTIN, you can reach out to our team anytime.
