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Registrations under GST

Procedure for Registrations under GST

GST APPLICABILITY

The effect of the new tax regime will be proportional to the size of the entity but ultimately it will be the end user who will bear the brunt of higher tax rate or get the benefits of lower taxes.

Furthermore,GST is state specific.

WHEN SHOULD YOU TAKE REGISTRATION 

  • When aggregate turnover in a financial year exceeds INR 20 lakhs.
  • Aggregate Turnover includes taxable supply + exempt supply + exports, of all units under same PAN number on all India basis.
  • The limit is reduced to INR 10 lakhs in case of 11 special category states that is 7 north east states & 4 hill states (Sikkim, Uttarakhand, Himachal Pradesh & Jammu & Kashmir)
  • Registration needs to be taken within 30 days of being liable to register.

WHEN  IT IS MANDATORY TO TAKE REGISTRATION 

Following persons need to take mandatory registrations & pay taxes accordingly.

(That is even if their turnover or supply is less than 20L / 10L, registration is mandatory)

  • If supplying inter-state. (Applicable even for Services)
  • If liable to pay tax under Reverse Charge (RCM)
  • Agents supplying goods/services on behalf of another (even if their agency commission is less than 20L / 10L)
  • Persons supplying through e-commerce portal (like Amazon, Flipkart, Paytm, etc.) or an e-commerce operator itself.
  • A casual taxable person or a non-resident person amongst others.

 WHEN IT IS NOT REQUIRED TO TAKE REGISTRATION 

In the following cases, a person is not liable to take Registration under GST:

  • If a person is engaged in exclusively supplying goods / services:
  • Which is wholly exempt from GST (e.g.: any nil rated goods or any exempted services such as health care services, etc.)
  • Tax on which is payable under RCM by the receiver.
  • Example  Services of an insurance agent providing agency services to Insurance Company is under RCM. Now if
    the agents’ entire services are falling under RCM, then
    the insurance agent is not liable to take registration,
    as the Insurance Company will be discharging the tax liability.)
  • An agriculturist is not liable to take registration to the extent of supply of produce out of land cultivation.

IN WHICH STATE SHOULD I TAKE REGISTRATION 

  • Registration is State Specific. (1 registration in 1 State)
  • Registration is required in the State FROM WHERE taxable supplies are made (& not in any other state)
  • Example 1 – A Ltd. has one factory in West Bengal and another in Orissa. Both the factories supply taxable goods. It also has a representative office in Delhi which is not supplying any taxable goods. So the Registrations are required in West Bengal & Orissa and NOT in Delhi. However, an ISD registration may be opted in Delhi if required.
  • Example 2 – X Ltd. has a factory in Gujarat which sells major of its goods to a customer Maharashtra. In this case, registration is required only in Gujarat & not in Maharashtra.

HOW CAN I TAKE REGISTRATION

  • Registration is PAN based. So having an Income-Tax PAN is must.
  • Separate registration for separate business verticals in one state is optional to the assessee.
  • Separate Registration is required for an ISD (to be able to distribute credit) or for cases where TDS/TCS is applicable.
  • Application for registration is required to be made online on the common portal and requisite documents are to be submitted therein.
  • Application needs to be electronically verified by DSC or Aadhar / EVC.
  • DSC is mandatory for Companies & LLP.
  • Registration will be deemed granted if no action taken or no clarifications sought within 3 working days of applying online.
  • Registration Certificate in REG-06 shall be issued and should be displayed by the assessee at all its place of business.

 ABOUT GAGAN KEDIA

The blog has been written under the guidance of GST tax expert CA Gagan Kedia.

Gagan is a commerce graduate, a Chartered Accountant and a Company Secretary by qualification. He has dedicated over past 1 year of his life in GST research, working closely with various authorities. Gagan has keen interest in training and has also conducted various training workshops with big corporate houses in the area of Taxation & Accounting.

He is also a selected faculty member of the Indirect Tax Committee of ICAI for GST Trainings.He is an active member of the privileged Kolkata Study Group of Indirect Tax Committee of ICAI.This committee deals in – GST Research, Representations to Governments, Publication of Books, etc.He is the Managing Partner of the Firm M/s. MRG KEDIA & Co., looking after Transaction Advisory & Litigations in the field of Service Tax & GST for various clients.

Gagan can be reached at cagkedia@gmail.com

 ABOUT ZEROINFY

Furthermore, all recent informations and changes relating to GST  is also available on Zeroinfy.com.

To know about the basic concepts of GST,click here.

Information relating gst rates on goods and services,click here.

For this reason,Keep visiting our site zeroinfy.com for more updates….

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