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GST Registration : A quick Reference guide

The biggest tax reform in India, witnessed in Form of single unified tax law called Goods and Service Tax is tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India, by subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. And with the Goods and Services Tax (GST) being rolled out on July 1, 2017,  it is important to understand who needs to register for GST,  how to register your business for GST, and what you need for business registration under GST regime. In the transition phase from old indirect tax taxation laws to GST regime we will have two type of taxpayers entering one are those who would be migrating from previous taxation law where the taxpayer is registered under the earlier taxation laws and second are those taxpayers who are not registered under previous tax laws are entering into GST for the first time.

What is GST Registration : Every supplier who is making a taxable supply of goods or services or both shall register in every State/Union Territory from where he makes taxable supply if his aggregate turnover exceeds 20 lac (10 lac for north eastern states) in a financial year.

Finer Point Study : Aggregate turnover would  mean value of all taxable supplies (excluding value of inward supplies liable to tax on reverse charge basis), exempt supplies, exports of goods and services or both and inter-state supplies of persons having the same Permanent Account Number [PAN] to be computed on all India basis, but excludes Central sales tax, State tax, Union Territory Tax, Integrated Tax and Cess.

Advantages of taking registration in GST :

  • You will be legally recognized as supplier of taxable supplies and or Services on GST Portal.
  • Will be eligible to utilize the input tax credits in servicing the tax liability GST payment. i.e., Input tax credit will be allowed to registered persons.
  • Legally authorized to collect tax by way of raising tax invoice.
  • Will be given compliance rating score which would be displayed across the GST Portal and could be viewed by any traders and manufacturers. This would help gaining businesses for tax payer as based on good compliance score/rating against his GSTIN , he might get orders from other trades and industries.

 Mandatory GST Registration Criteria: 

  • These taxpayers are required to take registration under GST irrespective of turnover:
  • Person making interstate supplies
  • casual taxable persons
  • Persons who are required to pay tax under RCM
  • Person who are required to pay tax under sub-section (5) of section 9 by way of collecting TCS (e-commerce operators)
  • Non-resident taxable persons making taxable supply
  • Persons who are required to deduct tax under section 51
  • Persons rendering taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
  • Input Service Distributor
  • Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52
  • Every E-commerce operator
  • Every person supplying OIDR services from a place outside India to a person in India, other than a registered person
  • Notified Persons

Persons not required to obtain GST Registration:

  • an agriculturist, to the extent of supply of produce out of cultivation of land
  • Person making supplies of goods or services that are not liable to tax under GST or wholly exempt under GST.
  • Individual advocates
  • Individual sponsorship service providers

Multiple Registration Under GST: A question arises whether where I have different businesses carried out under the same PAN, then am I required to register centrally under GST i.e., one registration number for all such businesses under same PAN. Then here’s what you need to know as under GST a registered taxable person who has been granted multiple registrations under the earlier law on the basis of a single PAN shall be granted only one provisional registration under GST. PAN is mandatory for GST Registration. One person would be allotted a single registration in a State or Union territory. However, there is an exception to the said provision which provides that if a person is having multiple business verticals in a State or Union territory, he may be granted separate registration for each business vertical.

Finer Point Study :

  • So if I don’t possess PAN, does it mean that I am not eligible to get registered under GST? A person should be mandatorily have Permanent Account Number issued under the Income Tax Act in order to be eligible for grant of registration. But there’s an exception to this, where the taxpayer registering under GST is a Non resident taxable or where the taxpayer is required to deduct tax under section 51 of the CGST Act.
  •  What does GSTIN mean in GST? For example, a service provider registered under erstwhile service tax law was assigned a ST registration number by CBEC. Similarly, when any dealer registered under VAT laws a unique TIN number is issued by state authorities. Now, in the GST regime all the business entities registering under GST will be provided a unique identification number known as GSTIN or GST Identification Number. The government will allot a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Even the existing taxpayers have to migrate into GST and a unique GSTIN will be allotted to them as well.
  • So when can I call myself as registered taxpayer under GST if I am applying for new registration and not through migration window?
  • For applications that has been submitted within thirty days from the date on which the person becomes liable for registration – the effective date shall be from the date on which the person becomes liable for registration.
  • For applications that has been submitted after thirty days from the date on which the person becomes liable for registration – the effective date of registration shall be the date of grant of registration.

Migration to GST : Persons who are registered and paying taxes under previous tax laws such as service tax, State Vat or Central Excise are required to migrate to GST. Many of the existing taxable persons have already migrated to GST Registration. Those who have not migrated should obtain provisional GST Registration number as soon as possible. They should get single provisional registration for each State even if they have multiple units/branches/ divisions within one State.

Every registered taxable persons whose annual turnover is below Rs 20 lakhs but are presently paying tax are required to migrate to GST and then apply for cancellation. In fact, if they do not submit any further details, the registration will automatically get cancelled . And they should have filed the tax returns as per their present registration for the period ending 30-6-2017.

Finer Point Study :

Is it compulsory that where I have registered under previous tax laws, I am required to get registered under GST by default? Every person registered under earlier law has to enroll on the Common Portal by validating his e-mail address and mobile no. Therefore, either the person has to get his registration cancelled before the appointed date or has to enroll under GST. There cannot be a situation wherein a person is registered under the earlier laws but chooses not to enroll in GST as on the appointment date.

Guide : GST Registration Process on GST Portal for New Registration

  • Go to the Government GST Portal and look for Registration Tab.
  • Fill PAN, Mobile No., E-mail ID and State in Part-A of Form GST REG-01 of GST Registration.
  • You will receive a temporary reference number on your Mobile and via E-mail after OTP verification.
  • You will then need to fill Part-B of Form GST REG-01 duly signed (by DSC or EVC) and upload the required documents specified according to the business type.
  • An acknowledgment will be generated in Form GST REG-02.
  • In case of any information sought from you and intimated to you in Form GST REG-03, you may need to visit the department and clarify or produce the documents within 7 working days in Form GST REG-04.
  • The office may also reject your application if they find any errors. You will be informed about this in Form GST REG-05.
  • A certificate of registration will then be finally issued to you by the department after verification and approval in Form GST REG-06.

Finer Point Study :

What are the documents that are needed to be submitted along with the Registration application? The following documents are required to be submitted by the registered taxable person

  • PAN Card of owner/ directors/ partners.
  • Bill of Electricity/ Telephone, Rent Agreement or Letter of Consent (NOC).
  • MOA/ AOA or Partnership Deed
  • Letter of Authorisation for signatory.
  • Bank statement/ Cancelled Cheque.
  • Aadhaar Card of owners/ directors/ partners.

Conclusion : I have tried to provide you with a complete guide on GST registration right from filing up of the form to downloading the GST certificate. You can have more access to information at the gst software, Tally.ERP 9 which itself is a GST Knowledge cyclopedia containing interactive Community forums, blog pages on GST topics, Webinars on GST related topics and a technical team which helps the users in assistance with software related queries. Whenever you see a change in GST law you can expect that Tally.ERP 9 would come up with the changes in its software through its modules and this is the sentiment which an average accountant attaches with Tally as it is simple to use and updated frequently to provide convenience in communicating with GSTN. So far we have had Tally.ERP 9 Release 6.2 which tells us that when it comes to provide services or serve you the complete GST software it is always GST ready.

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