GST
GST is the biggest tax reform in India which has tremendously improved business and increasing the taxpayer base in India by including millions of small businesses.GST has been implemented in India from 1st July, 2017. Under the new GST regime, over 1.3 crore business in India have been registered and issued GST registration Tax complexities would be reduced due to the abolishing and subsuming of multiple taxes into a single, simple system.
The new GST regime mandates that all organization involved in buying or selling goods or providing services or both are required to register and obtain GSTIN. Registration is mandatory once the organization crosses a minimum threshold turnover or when an individual starts a new business that is expected to cross the prescribed turnover.
Required Register for following category Businesses
Aggregate turnover
Any service provides a value of more than Rs. 20 Lakhs in a year is required to obtain GST registration. In the special category states, this limit is Rs. 10 lakhs. Any organization engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs is required to obtain GST registration.
Voluntary registration
Any business can obtain GST registration based upon their requirement at any time. voluntarily.
Types of GST registration
1. Normal scheme
This category applies to taxpayers operating a business in India. Taxpayers registering under the normal scheme do not require a deposit and are also provided with unlimited validity date.
2. Non-resident taxable person
This category applies to individuals located outside of India. The taxpayers should supply goods or services to residents in India. The registration remains active for a period of 3 years.
3. Composition scheme
An organization should enroll under the GST composition scheme to register as a composition taxpayer. The taxpayer whose turnover is less than Rs. 1.5 Crore can avail this facility. An organization enrolled under this scheme can pay a flat GST rate. However, they will not be allowed to claim input tax credit.
DOCUMENTS REQUIRED
- PAN card of business
- Photograph
- Idorganization proof (pan card);
- Copy of address proof for registered office (aadhar card);
o Electricity receipt or Property tax receipt
o Copy of legal ownership document or municipal khata copy (in case of owned premises)
o Rent agreement and No Objection Certificate (NOC) from the owner of the premises (in case of rented premises).
- Copy of bank statement or cancelled cheque or first page of the pass book.
- Letter of authorization (printout in company letter head)
GST Annual Return
GST annual return filing is mandatory for all organization having GST registration, irrespective of business activity or sales or profitability during the return filing period. Hence, even a dormant business that obtained GST registration must file Nil GST return.
Before filing GST annual return the taxpayer must have filed all GSTR-1 or GSTR-3B or GSTR-4 return for the period of April to March. In case there are overdue GST returns for the above-mentioned period, the GST registration holder will not be allowed to file GST annual return.
GST Annual Return Types
- GSTR-9: All GST registered organization are required to file GST annual return in form GSTR-9.
- GSTR-9A:GST Composition Scheme under Goods and Services Tax (GST) are required to file GSTR-9A.
- GSTR 9C is applicable who obtain an annual GST audit of their accounts. GSTR-9C must be prepared and certified by a Chartered Accountant or Cost Accountant. GST audit is applicable for person having GST registration with an annual aggregate turnover of above Rs. 2 crores in a particular financial year.
GST RETURN FILLING
Registered organization are required to file 2 monthly returns and 1 annual return, in a year.
Organization have to file the GSTR-3B return every month providing details of sales and purchases made in a month. GSTR-1 return must be filed every month by businesses having an annual revenue of over Rs.1.5 crores/Having less than 1.5 crores of turnover required to file on a quarterly basis.
GST CANCELLATION
A GST registration obtained in India can be cancelled by the registered person at any time in case of death of registered person under GST.
A GST registration granted to a person can be cancelled by an Officer, if:
- The taxable person under GST does not conduct any business from the declared place of business; or
- Issues invoice or bill without supply of goods or services in violation of the GST Act and/or GST rules.
- If a person having GST registration has continously not filed GST returns for six months.
Before the cancellation of registration, the Officer would issue a notice to such person whose GST registration is liable to be cancelled, requiring show cause within seven working days from the date of service of such notice. The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand cancelled.
Voluntary cancellation by the registered person
Under Section 29 of the CGST Act, a GST registration cancellation can be initiated by the person registered under GST in the following circumstances:
- Discontinuance or closure of a business.
- Transfer of business, amalgamation, merger, de-merger, lease or other pertinent reasons.
- Change in the constitution of business, which results in a change of PAN.
- Turnover reduces below the threshold limit for GST registration.
- Death of the sole proprietor.
- Any other reason, the likes of which must be proved in the application.
Before applying for GST cancellation
Before applying for GST registration cancellation, the taxpayer must file all the GST returns up to date. In case there is non-compliance with respect to GSTR-3B return or GSTR-1 return or GST annual return.
Final GST payment
While applying for GST cancellation, the applicant is mandated to pay any overdue GST liability as per the GST returns filed.
FAQ
An organization liable to be registered under GST should apply for registration within 30 days of meeting the criteria.
GSTIN is a 15 digit identification that is allotted each taxpayer based on PAN and State of the applicant. In a GST registration number, the first two digits represents the State Code, followed by the next 10 digits representing the PAN of the applicant, one digit representing organization code, one digit is left blank and the last digit is a check digit
Primary authorized signatory is the person who is primarily responsible on behalf of the taxpayer.
GST registration does not have an expiry date. Hence, it will be valid until it’s cancelled, surrendered or suspended.
No, only persons registered under GST are allowed to collect GST from the customers. A person not registered under GST cannot even claim input tax credit on the GST paid.
An E-way bill is an electronic document which serves as an evidence to the movement of goods having a value of more than Rs. 50,000. It available to a supplier or an individual transporting goods. It has two components; Part A, with details such a GSTIN of the supplier and recipient, place of delivery, value of goods, HSN code, reason for transportation and part B, with details of the vehicle and transport documents.
It is a wholly digital interface which eliminates the need for state boundary checks.
As per rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior to the commencement of transport of goods.
It is mandatory to generate E Way bill in all cases wherein the value of consignment is more than Rs. 50,000.
Any taxable person who transports any goods without the cover of specified documents shall be liable to pay a penalty of Rs. 10,000 or the amount of tax sought to be evaded.