Applicability and Registration under Goods and Service Tax

Applicability and registration under GST

 

Applicability and Registrations under GST

Registration Under GST Subject to Turnover

Every supplier making taxable supplies of goods or services or both, will have to take registration if aggregate turnover in financial year exceeds INR 20 lakh.

Such supplier required to make application with in 30 days from the date he become liable to get registered.

A casual taxable or a non-resident taxable person required to make application at least 5 days prior to commencement to business.

Registration for supplier of special category state

In case, supplier makes taxable supplies of goods or services or both from any of the special category state, he shall be liable to registration if aggregate turnover in financial year exceeds INR 10 lakh.

Specified states:

  1. Arunachal Pradesh,
  2. Assam,
  3. Jammu and Kashmir,
  4. Manipur,
  5. Meghalaya,
  6. Mizoram,
  7. Nagaland,
  8. Sikkim,
  9. Tripura,
  10. Himachal Pradesh
  11. Uttarakhand

Aggregate Turnover under GST

Inclusion:

  1. all taxable supplies
  2. all exempt supplies
  3. exports of goods and/or service
  4. all inter-state supplies of a person having the same PAN
  5. all supplies made by the Taxable person, whether on his own account or made on behalf of all his principals
  6. The above shall be computed on all India basis

Exclusion:

  1. Taxes charged under the CGST Act, SGST Act, UTGST Act, and the IGST Act
  2. Value of supplies on which tax is levied on reverse charge basis, and value of inward supplies

Cases where limit of INR 20 lakh for registration does not apply i.e. Mandatory Registration under GST

  1. Any person making inter – state supplies
  2. Casual taxable persons making taxable supply
  3. Persons who are required to pay tax under reverse charge
  4. Non-resident taxable persons making taxable supply

5  Person who deduct TDS u/s 51 of CGST Act

  1. Person who make taxable supplies on behalf of other person
  2. Input service distributors
  3. Person supplying through Electronic Commerce Operator
  4. Electronic Commerce Operator
  5. Any person supplying Data access, retrieval service from place outside India to a person in India

Other Important Points

  1. State wise registrationhas to be taken in case business in more than 1 state.
  2. A person having multiple business verticals in a State may obtain a separate registration for each business vertical. However such registration is optional.
  3. A person may get himself registered voluntary.
  4. PAN number is mandatory to obtain registration under GST.

Inter – State Supplies

Person making inter – state supplies will have to take mandatory registration. Such person will have to take registration under GST even if he makes supplies of One Ruppees.

In case person required to pay taxes under Reverse charge, such person will have to take mandatory registration under GST.

Mandatory Registration for Casual Taxable Person

Casual taxable person means a person who occasionally undertakes transactions of supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business. Such person have to take compulsory registration.

Time Limit for Registration:

Such person have all apply for registration at least 5 days before commencement of business.

Validity of Registration:

the certificate of registration issued to a “casual taxable person” shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier

Advance Tax:

Advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

Mandatory Registration for Non – Resident Person

Non – Resident person making taxable will have to take compulsory registration. No Exemption has been given to such person.

Time Limit for Registration:

Such person have all apply for registration at least 5 days before commencement of business.

Validity of Registration:

The certificate of registration issued to a “non-resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier

Advance Tax:

Advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

Person Required to Deducted TDS u/s 51 of CGST Act

The Government may provide for the person where such person have to deduct TDS and deposit such TDS to the government. All such person will have to take mandatory registration. No exemption limit has been provided to these people.

Agent who supplies on behalf of principle

Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise, will have to take mandatory registration under GST.

Input Service Distributors

ISD stands for Input Service Distributor and 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.

Separate Registration:

The ISD registration is for one office of the taxpayer which will be different from the normal registration. Tax Payer can have multiple ISD registration.

Electronic Commerce Operator or Person supplying via Electronic Commerce Operator

Electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce will have to take mandatory registration irrespective of Aggregate Turnover.

Person Not Liable for Registration

Any person EXCLUSIVELY engaged in supplying Goods or Services or both that are not liable to tax or wholly exempted from GST or IGST is not required to take registration.

An agriculturist, to the extent of supply of produce out of cultivation of land.

 

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