What is GST Registration?
Every business carrying out a taxable supply of goods or services under
GST regime and whose turnover exceeds the threshold limit of Rs. 20
lakh/ 10 Lakh as applicable will be required to register as a normal
taxable person. This process is of registration is referred as GST
registration.
Why is GST Registration Important?
GST registration is critical because it will enable you to avail
various benefits that are available under the GST regime. One such
benefit is to avail seamless input tax credit. Multiple taxes are being
clubbed under GST and thus the cascading of taxes that is prevailing
currently will no longer be the case.
Also, timely registration will help you avoid any kind of interface with tax authorities.
GSTIN
It is expected that 8 million
taxpayers will be migrated from various platforms into GST. All of these
businesses will be assigned a unique Goods and Services Tax
Identification Number.
Casual Registration
A person who occasionally supplies
goods and/or services in a territory where GST is applicable but he does
not have a fixed place of business. Such a person will be treated as a
casual taxable person as per GST.
Example: A person who has a
place of business in Bangalore supplies taxable consulting services in
Pune where he has no place of business would be treated as a casual
taxable person in Pune.
Composition Dealer
This is an option available to small
businesses and taxpayers having a turnover less than Rs. 75 lakhs. They
can opt for Composition scheme where they will tax at a nominal rate of
1% or 2.50% (for manufacturers) CGST and SGST each (rates will be
notified later).
They will be required to maintain
much less detailed records and file only 1 quarterly return instead of
three monthly returns. However, they cannot issue taxable invoices,
i.e., collect tax from customers, but are required to pay the tax out of
their own pocket. They cannot also claim any input tax credit.
Composition levy is available to only
small businesses. It is not available to interstate sellers, e-commerce
traders, and operators.
Applicability
GST will apply when turnover of the
business exceeds Rs 20 lakhs (Limit is Rs 10 lakhs for the North Eastern
States). [Earlier the limit was Rs 10lakhs and Rs 5lakhs for NE
states.
Migration to GST
All existing Central Excise and
Service Tax assessees and VAT dealers will be migrated to GST. To
migrate to GST, assessees would be provided a Provisional ID and
Password by CBEC/State Commercial Tax Departments.
Provisional IDs would be issued to
only those assessees who have a valid PAN associated with their
registration. An assessee may not be provided a Provisional ID in the
following cases:
- The PAN associated with the registration is not valid
- The PAN is registered with a State Tax authority and Provisional ID has been supplied by the said State Tax authority.
- There are multiple CE/ST registrations on the same PAN in a State. In this case, only 1 Provisional ID would be issued for the 1st registration in the alphabetical order provided any of the above 2 conditions are not met.
The assessees need to use this Provisional ID and Password to login to the GST Common Portal (https://www.gst.gov.in) where they would be required to fill and submit the Form 20 along with necessary supporting documents.
Penalties for Not Registering Under GST
An offender not paying tax or making
short payments has to pay a penalty of 10% of the tax amount due subject
to a minimum of Rs.10,000. The penalty will be high at 100% of the tax
amount when the offender has evaded i.e., where there is a deliberate
fraud.
However, for other genuine errors, the penalty is 10% of the tax due.
Multiple Registrations Under GST
A person with multiple business verticals in a state may obtain a separate registration for each business vertical.
PAN is mandatory to apply for GST
registration (except for a non-resident person who can get GST
registration on the basis of other documents).
A registration which has been rejected under CGST Act/SGST Act shall also stand rejected for the purpose of SGST/CGST act.
Note: Article by ( https://cleartax.in/s/gst-registration )
