What is exactly is the GST?
GST (Goods a service tax) is a Pan based comprehensive, multi-stage destination based valued added tax on manufacture, Sale and consumption of goods throughout the India. GST replaces all taxes levied by the state and central governments. Goods and Services Tax (GST) is not only the tax reforms in the India, it is going to be business reforms. Government aims to remove all tax barriers between central &states. It aims to create a single market with mission of one nation one tax.
What is GST Registration?
Every business entity carrying out a taxable business activity by supply of goods or services and whose turnover exceeds Rs.20 lakh other than north east India and in other state Rs. 10 Lakh will require to register as normal taxable person.
Who all are exempted from GST Registration?
Exclusively evolved in exempted supply for goods & Services.
No Need to apply for GST registration and they can simply apply for UIN (Unique identification number) instead GSTIN.
All the consulate of foreign nations in India shall be required to obtain UIN No.
A person evolved in agriculture activity is exempted from the requirement of GST Registration. if a person has any other taxable business apart of agriculture then he will not be entitled to claim exemption like horticulture, Farming i.e.
A person or business Activity
As Notified person by GST board from time to time
Who all are liable to be registered under GST Act?
A Person Registered under the any Existing Indirect Tax laws like VAT, CST, Excise, Service tax i.e. shall be automatically migrated to GST.
A person who is location in north east states and annual turnover is 10 lac or more shall be required to be registered under the GST laws. For the rest of India the mandatory registration under GST Act is required if annual turnover is Rs. 20 lac or more.
- Every e-commerce aggregator& Importer has to mandatorily apply for GST Registration irrespective of turnover
- A person who claims input tax credit should apply for GST Registration
- A person who collect TDS/ TCS and liable to deposit in the Government account shall be required to register with GST portal
- A person who pays tax on reverse charge mechanism – under reverse charge mechanism the purchaser of goods and services admits to pay the taxes &claim input hence will require to register with GST Portal.
- Input service distributor
- A person evolved in interstate supply of goods and services are mandatorily require to obtain GST Registration no.
- All causal dealer must be registered prior to start of business
- Non-resident tax payer will require to obtain registration in advance before any supply of goods and services in India.
- Online database and software service provider other than Indian taxable person.
A person at his own motion may apply for voluntarily GST registration even if he has no turnover of supply of goods or services. and he can enjoy all other benefits available to a tax payer under the GST Act like Claim of Input tax credit, he Can collect tax on supply of goods and services. Can issue invoice i.efew other benefits in terms of size and scale of business. B2B customers only prefers to buy from a registered taxable person.
What is timeline for GST Registration
- Existing taxpayers – All existing tax payers registered under VAT/CST, Excise, Service tax i.e mandatorily required to be registered before 1st June 2017. Only registered person under GST shall be allowed do carry forward of Input tax credit.
- New Taxpayers – all liable taxpayers are required to be registered within 30 days and if you will file well on time then you can avail input tax credit from 1st day of your business. If you delay the registration then you can only collect tax or avail input tax credit only from the date GST registration has been granted.
- For Causal dealer – A casual dealer who intent to start a business under GST regime has to mandatorily apply for GST registration 5 days before commencement of business. A causal dealer has to pay GST in advance based on the estimated turnover of 90 days. GST Registration for causal dealer is only valid for 90 days.
- For Non-resident, taxable person – a non-resident taxable person who wish to commence a business India without setting up fixed establishment or office then he has to apply for GST Registration 5 days before commencement of business. The validity of GST Registration for non-resident is for maximum 90 days. Another extension may be applied for another 90 days and tax has to be paid in advance.
GST Registration Procedure
GST Registration is 100% online process and you just need basic understanding of GST laws to register or migrate your existing registration No to GST portal.
- For GST migration login to State government VAT website & for service tax and excise CEBEC online platform.
- Generate provisional login id for migration to GST portal
- Log in to GST Portal
- Submit email id and Phone no of the taxpayers
- Upload necessary documents
- Digitally sign all the GST forms
- GST Department within 3 working days will issue you the certificate
What is Procedure for Multiple GST Registration
GST registration has to obtained for each state of business operations under CGST & SGST. Each registered unit will be treater as distinctperson under GST Regime.
If a business has more than one business location in a state it is called multiple business verticals then supplier of goods or services can apply for one single registration for one business segment.
If a business has more than one business segment then he will have to apply for GST Registration for each business segment in a state. One person has one factory as well 10 retail outlets of ready-made garments and healthy snacks in Delhi, then he has to apply separately for two business segment Apparel and Snacks.