GST Registration Online

GST (Goods and Services Tax) has been one of the largest tax reforms this country has seen. It is a single tax with which those taxes that existed previously i.e. Central Excise, VAT, Entry Tax, Octroi, and Service Tax have been replaced. GST was introduced nationwide on July 1, 2017.

It follows a dual model in which both the State and the Central government levy tax on goods and services. All businesses are required to obtain a GST number for every state that specific business has been registered in. The first step under the GST regime is to know whether the business is liable to register and register accordingly.

Entities involved in the supply of goods whose turnover in a financial year exceeds Rs 40 lakhs for Normal Category states (Rs 20 lakhs for Special Category states) and Entities involved in the supply of services whose turnover in a financial year exceeds Rs 20 lakhs for Normal Category states (Rs 10 lakhs for Special Category states).

No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.

As per section 2(6) of the CGST/SGST Act “aggregate turnover” includes the aggregate value of:

1. all taxable supplies,
2. all exempt supplies,
3. exports of goods and/or service, and,
4. all inter-state supplies of a person having the same PAN

The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, UTGST Act, and the IGST Act. Aggregate turnover shall include all supplies made by the Taxable person, whether on his own account or made on behalf of all his principals.

Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies.

A person must apply for GST registration within 30 days from the date on which he becomes liable to registration. The process, rules, and conditions of the GST application must follow the Registration Rules laid by GST Council.

A Casual taxable person and a Non-Resident taxable person must get their GST registration, at least 5 days before the commencement of business.

No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.

Yes, a person though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.

Casual Taxable Person has been defined in Section 2 (20) of the CGST/SGST Act meaning a person who occasionally undertakes transactions involving supply of goods and/or services in the course of business, whether as principal, or agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

ISD i.e. Input Service Distributor has been defined under Section 2(61) of the CGST/SGST Act. It is basically an office meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units (having the same PAN) proportionately.

Food (such as Cereals, Fruits & Vegetables, milk, etc), Raw Materials (Raw Material, Yarn, Fiber etc), Medical Tools & Instruments (Hearing Aids, or aids used by physically challenged people), Handtools {such as Spades, Shovel, Newspapers, Books, Beehives, Human Blood, Chalk Sticks, Contraceptives, Earthen Pots, Props used in Pooja (including Idols, Bindi, KumKum), Kites, Organic Manure, and Vaccines. etc.

Services related to Agriculture, Cultivation, Harvesting, etc. Transportation Services by road or bridge. Services by RBI, Foreign Diplomatic Missions, Postal Services, etc.

A taxable person, with no fixed place of business in India. This person resides abroad and undertakes transactions in India, only occasionally.

GST certificate is granted for the lifetime of the business unless cancelled, suspended, revoked or surrendered. Only those certificates, as issued to the Casual taxable person, and Non-Resident taxable persons have a validity period fixed by the Authorities.

Usually the supplier is selling goods & hence the tax is levied upon the supplier. However, in certain cases, the tax is levied upon the buyer and the buyer pays GST directly to the government. This is called a reverse charge. Under RCM, the responsibility to pay tax gets reversed. The applicability of RCM is when the supplier is not registered with GST and is making a supply to a GST registered taxpayer. In such a situation, the registered taxpayer is required to remit the applicable GST as a reverse charge to the government. The government has also notified a list on which the reverse charge will be applicable.

The difference is in the terms of Input Tax Credit. Only Zero rated goods are eligible for ITC whereas Nil rated & Exempted goods are not eligible for ITC.

Harmonised System of Nomenclature (HSN) code is used for the classification of goods. A 4-digit code is to be used in the invoices by the Taxpayers with a turnover upto Rs. 5 crores. While the taxpayers whose turnover is more than Rs. 5 crores are to use 6-digit code. This requirement has been made mandatory w.e.f 1^st April, 2021.