Goods and Service Tax
Goods and Service Tax is an indirect tax levied on the supply of goods and services. GST Law has replaced many indirect tax laws that previously existed in India. The GST Act came into effect on 1st July 2017. Under the GST regime, the tax will be levied at every point of sale. There are three taxes applicable under GST: CGST, SGST & IGST.
Every supplier shall be liable to be registered under GST Law in the State from where he/she makes a taxable supply of goods and/or services if his/her aggregate turnover exceeds thresholds limit of Rs.20 Lakhs. For, North Indian states and Sikkim, the exemption would be Rs. 10 lakhs. However, certain categories are required to get registered mandatorily irrespective of the thresholds:
- Persons making any Inter-State taxable supply (e.g. from Delhi to Maharashtra)
- Casual Taxable person (No fixed place where GST is applicable)
- Non-resident Taxable person (No fixed place in India)
- Persons who are required to pay tax under Reverse Charge
- Persons who are required to deduct tax at source
- Agents of a supplier
- Input Service Distributor
- Persons who supply goods or services through E-commerce Operator
- Every E-commerce Operator (e.g. Flipkart, Amazon)
- An aggregator who supplies services under his brand name
- Any Specialized Agency of the UN or any Multilateral Financial Institution
What are the documents required for GST Registration?
The documents required for GST Registration differ for each type of business. PAN is compulsory to apply for GST Registration (except for non-resident). The list of documents are:
- PAN of the Applican
- Aadhaar card
- Proof of business registration or incorporation certificate
- Identity and Address proof of Promoters/Director with Photographs
- Address proof of the place of business
- Bank account statement/Cancelled cheque
- Digital Signature(Compulsory in case Pvt Ltd Company)
- Letter of Authorization/Board Resolution for Authorized Signatory
Can an unregistered dealer supply goods to other States if his turnover is below Rs. 20 lakh?
No. The supplier would be liable to obtain registration in case of Inter-State supplies irrespective of his turnover
Existing taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration?
For every State, fresh registration is needed.
Is registration necessary if only Inter-State supply of Nil rated goods is being made?
If exclusively making supplies of Nil rated goods, registration is not compulsory. Kindly refer Section 23 of CGST Act.
A firm dealing exclusively in exempted products has GST registration. Does it need to file return?
If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.
My all outward supplies are export services. In such case is it compulsory to register under GST?
Yes. Since exports are zero-rate, One needs to register under GST to claim refunds.
Can a person operating two different companies with different names but with same PAN get two GST registrations?
One PAN holder gets one registration in every State, but he has the option of getting different registration for different business verticals
I am a service provider with turnover of Rs. 50 lakh in one State only. Am I eligible for the composition scheme?
Service providers, except restaurants/caterers, are not eligible for composition scheme.
I am an ice-cream manufacturer with sales in one State only. Can I avail the option of composition?
No. The manufacturers of following goods, namely-
• Ice-cream and other edible ice, whether or not containing cocoa,
• Tobacco and manufactured tobacco substitutes,are not eligible for benefit of composition scheme
If I register under the composition scheme, can I opt out of it later? What happens to my stock if I do so?
Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switch over in terms of Section 18(1)(c ) of CGST Act, 2017.
Can I register as a normal taxable person now and avail of the composition scheme later?
You can opt for composition scheme from the beginning of the next financial year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.
I have registered as a composition dealer. If my turnover crosses Rs.1.5 cr, can I continue in the scheme for the remaining part of the financial year?
No, a taxpayer becomes ineligible for composition scheme on the day his turnover crosses Rs. 75 Lakh.