GST REGISTRATION
Benefits of registration -
Registration will confer the following advantages to a taxpayer:
(a) He is legally recognized as supplier of goods or services.
(b) He is legally authorized to collect taxes from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/recipients.
(c) He can claim input tax credit of taxes paid and can utilized the same for payment of taxes due on supply of goods or services.
(d) Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
Threshold limit for registration -
Registration is mandatory when Aggregate Turnover in a Financial year exceeds Rs.20 lakhs (Aggregate Turnover = Value of Taxable of Supplies + Exempt supplies + Inter State supplies + Exports of both Goods and services of persons having the same PAN calculated on all India basis less tax under IGST, CGST, SGST and Cess), except for special Category States, where the threshold limit for aggregate turnover is Rs.10 lakhs.
Exemption from registration - Irrespective of the turnover, the following dealers are exempted from Registration: -
(a) Agriculturist for the purpose of Agriculture.
(b) Supply of exclusively exempted goods
Voluntary Registration -
A person not liable to be registered under the Act, may get himself registered voluntarily to avail ITC and pass on the ITC to the recipient.
Compulsory Registration - The following class of persons shall compulsorily register; -
(a) Casual Taxable person.
(b) Persons making Inter-state Taxable supply.
(c) Persons who are required to pay tax under reverse charge.
(d) Persons who are required to pay tax as e- commerce operators.
(e)Non-resident taxable person.
(f) Persons required to deduct tax as TDS (Government Agencies, Department etc.)
(g) Persons required to collect tax as TCS (electronic commerce operators)
Casual taxable person and a Nonresident taxable person - A Casul taxable person is one who has a registered business in some State in India but wants to effect supplies in some other State in which he is not having any fixed place of business. such person needs to register in the State from where he seeks to supply as a Casual taxable person.
A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration. GST law prescribes special procedure for registration, as also for extension of the operation period of such Casual or Non-Resident taxable persons.
They have to apply for registration at least five days in advance before making any supply. Also, registration is granted to them, or period of operation is extended only after they make advance deposit of the estimated tax liability.
Registration process
(a) Application to be filed online within 30 days of becoming liable.
(b) Casual Dealers and non-resident taxable person shall apply at least 5 days prior to the date of commencement of business period of Validation is as specified in the application or 90 days from the effective date of registration whichever is earlier and an advance deposit of tax, an amount equivalent to the estimated tax liability of such person.
(c) All the core fields (name of business, principal place of business and stakeholders' details, etc.) should be filled up.
(d) Scanned documents to be attached.
(e) Digital Signature or e-sign should be done.
(f) Application to be processed within 3 common working days.
(g) If application is successful the Registration Certification will be sent in the PDF format to the e-mail.
(h) All queries to be raised and communicated by the proper officer within 3 common working days sent in PDF format to the e-mail of the applicant.
(I) Applicant should reply to query within 7 days - failure will entail automatic rejection by the system.
(j) On receipt of reply, registration should be granted/rejected within 7 days.
(k) Rejection of Application under CGST will be a deemed rejection under SGST and vice-versa.
(l) Deemed Approval, if no query.
Credit Note
For issuing credit note, an invoice for a supply should have been issued earlier. A credit note may be issued in the following circumstances.
(a) The taxable value on which the tax collected is more than the actual taxable value
(b) The tax charged is more than what should have been charged
(c) The recipient has returned the goods
Debit Note
A debit note may be issued in the following circumstances
(a) The taxable value on which the tax collected is less than the actual taxable value.
(b) The tax charged is less than what should have been charged.
Copies of invoices for supply of goods the invoice should be prepared in triplicate.
(a) The original copy being marked as "ORIGINAL FOR RECIPENT"
(b) The duplicate copy being marked as "
DUPLICATE FOR TRANSPORTER "and(c) The triplicate copy being marked as "TRIPLICATE FOR SUPPLIER"
Document for Reverse charge Were tax is to be collected on reverse charges basis, the recipient of goods or services has to issue a payment voucher at the time of making payment to the supplier. The dealer is also required to issue tax invoice mentioning that the tax has been collected on reverse charge basis
Contents of an INVOICE -
A Tax invoice should contain the following details:
(1) Name, address and GSTIN of the supplier
(2) Consecutive serial number containing alphabets or numerals or special characters hyphen (-) or slash (/) for a financial year.
(3) Date of issue
(4) Name, address and GSTIN or UIN of the recipient, if the recipient is a registered dealer.
(5) Name and address of the recipient if the invoice value is more than Rs. 50000/-
(6) HSN code of goods or accounting code of services
(7) Description of goods or services
(8) Quantity in case of goods and unit or Unique Quantity code thereof
(9) Total value of supply of goods or services or both
(10) Taxable value of supply of goods or services or both taking into account
(11) Rate of tax separately for each type of tax (central tax, State tax, integrated tax or cess)
(12) Amount of tax charged (central tax, State tax, integrated)
Amendment in Registration:
Except for the changes in some core information in the registration application, a taxable person shall be able to make amendments without requiring any specific approval from the tax authority. In case the Chage is for legal name of the business or additional place of business, the taxable person will apply for amendment within 15 days of the event necessitating the change. The proper officer, then, will approve the amendment within the next 15 days. For other charges like the name of day-to-day functionaries, e-mail IDs, mobile numbers etc. no. approval of the proper officer is required, and the amendment can be affected by the taxable person on his own on the common portal.
Cancellation of registration - Cancellation of registration can be done in the following circumstances
(1) Transfer of business or discontinuation of business or merger
(2) Death of the proprietor
(3) Change in the constitution of business. (Partnership firm may be changed to sole Proprietorship due to death of one of the two partners, leading to Change in (PAN)
(4) Person no longer liable to be registered (Except when he is voluntarily registered)
(5) Registered taxable person has contravened provisions of the Act or Rules
(6) A composition supplier has not furnished returns for 3 consecutive tax period/any other taxable person has not furnished returns for a continues period of 6 months
(7) Non- commencement of business within 6 months from date of registration by a person who has registered voluntarily.
(8) Where registration has been obtained by means of fraud, willful misstatement or suppression of facts, the registration may be cancelled with retrospective effect.
Revocation of cancellation of registration:
Issue of Invoice for supply of goods - When movement of goods is not involved, tax invoice has to be issued before or at the time of removal of the goods.
When movement of goods is not involved, tax invoice has to be issued before or at the time of delivery of goods to the recipient or when the goods are made available to the recipient.
Issue of Invoice for Supply of services
In case of supply of service, tax invoice has to be issued within 30 days of supply of services. In case of banking, insurance and other finance companies, invoice has to be raised within 45 days of supply of services.
Issue of invoice by an unregistered person Only a registered person can issue a tax invoice. GST law specifically prohibits collection of tax by persons who are not registered under the GST law
Revised Invoice - The words 'Revised invoice' or Supplementary invoice' should be mentioned prominently in such invoices along with reference of the date and invoice number of the original invoice.
Bill of supply
A Bill of supply is a document issued instead of a tax invoice. Bill of supply is issued for the following supplies
(a) Supply of exempted goods or services, or
(b) Supply made by a composition taxpayer
For all sales of exempted goods made for a value more than Rs. 200/- and for all sales made by a composition supplier for a value more than Rs. 200/-, Bill of supply need not be issued unless the recipient demands for such a bill. At the end of the day, a consolidated Bill of supply should be.
