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GST REGISTRATION

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GST Registration

What is GST?

GST stands for Goods and Services Tax. GST is a destination based indirect tax, which was introduced from 1st July 2017. GST subsumed many earlier indirect taxes such as Excise Duty, VAT, CST, Additional Duties of Excise, and Service Tax etc. There are three taxes under GST namely CGST, SGST or UTGST and IGST. In case of Intra-state supplies, CGST and SGST are levied. In case of inter-state supplies, IGST is levied.

What is GST Registration?

Any business whose annual turnover is more than the prescribed limit shall make an online application for a GST Number on gst portal. The application is accompanied with all the necessary details and documents. The application is examined by the department and if all the details and documents are found satisfactory, his application is approved and he is allotted GST Identification Number, which is a 15 digit alpha-numeric, PAN-Based and State Specific unique number. This process usually takes 3 working days.

When GST Registration is Mandatory?

The GST registration is mandatory if the “aggregate turnover” during a financial year exceeds the following prescribed limits:

States

If exclusively engaged in supply of Goods*

If engaged in supply of Services, or goods or services or both

  1. Manipur
  2. Mizoram
  3. Nagaland
  4. Tripura

10 Lakhs

10 Lakhs

  1. Arunachal Pradesh
  2. Meghalaya
  3. Puducherry
  4. Sikkim
  5. Telangana
  6. Uttarakhand

20 Lakhs

20 Lakhs

All other states

40 Lakhs

20 Lakhs

*The limit of Rs 40 Lakhs is available only if person is exclusively engaged in Supply of goods. A relaxation has been provided that if a person dealing in goods have any interest income on loans or advances, then also he shall be deemed to be engaged exclusively in supply of goods only.

What is Aggregate Turnover?

  • Aggregate turnover comprises of following :

1. Taxable Supplies

2. Exempt Supplies

3. Export of goods or services or both

4. Inter-state supplies to persons having same PAN

  • But it excludes CGST, SGST, IGST charged on supplies and inward supplies on which tax is payable under Reverse charge. However outward supplies by a person on which tax is payable by the recipient under RCM are part of aggregate turnover.
  • Further, this aggregate turnover is be calculated on PAN India Basis. If a person is having one branch in Rajasthan and another branch in Kerala, then turnover of both the branches are to be clubbed for calculating aggregate turnover.

Compulsory Registration in certain cases

Under GST law, GST registration is mandatory in certain cases irrespective of turnover limit. The situations are as follows:

  1. Person engaged in inter-state supply of goods (not services)
  2. Person who is required to make payment of tax under Reverse Charge
  3. Casual Taxable person making taxable supply
  4. Non-resident Taxable person making taxable supply
  5. Person who make taxable supply of goods or services or both on behalf of another taxable person whether as agent or otherwise
  6. Person who is required to deduct TDS
  7. Electronic Commerce Operator who is required to collect TCS
  8. Person supplying goods (not services ) through Electronic commerce operator who is required to collect TCS
  9. Input Service Distributor
  10. Person supplying Online Information Database Access and Retrieval Services from outside India to un-registered person in India

No liability of registration even threshold limit of turnover is crossed

  • Person who is only engaged in making supplies of goods or services or both tax on which is to be paid by the recipient under reverse charge has been exempted from taking GST registration even if turnover crosses the threshold limit.
  • Ex: A person who is exclusively engaged in providing transportation services, tax on which is to be paid by Recipient, then he shall not be liable to get registered under GST.

When should a person apply for GST registration and what is process?

  • A person should apply for GST number within 30 days of becoming liable for registration. If a person applies for GST number within 30 days of becoming liable, he will be granted GST number effective from date of becoming liable to registration.
  • The process of applying GST number is completely online. A person may apply for GST number on www.gst.gov.in by filling all the necessary details and uploading required documents. It takes usually 3 working days to get GST number approved by department.

What is GST Identification Number (GSTIN)

Every person who is registered under GST is allotted a 15-digit Goods and Services Tax Identification Number (GSTIN) or GST Number which is a unique to every registered person. GSTIN is utilized by tax authorities to maintain records of GST dues and payments of those who are registered under the GST Act.

GST Number Format

A unique code known as GSTIN is assigned to each tax payer, which will be state wise and PAN based. Here is the breakdown of the 15-digit GSTIN format:

  1. The first two digits represents the state code as per Indian Census 2011. Every state or Union territory has a unique code. For example, 27 stands for Maharashtra and 09 is for Uttar Pradesh.
  2. The next ten digits are the PAN number of the taxpayer or business house
  3. The 13th digit indicates the number of registrations in a state for the same PAN. It will be an alpha-numeric digit (first 1-9 and then A-Z)
  4. The 14th digit will be alphabet ‘Z’ by default
  5. The last digit will be a check code to detect errors. It can be an alphabet or a number

State code list under GST

State

State code list under GST

State

01

Jammu & Kashmir

19

West Bengal

02

Himachal Pradesh

20

Jharkhand

03

Punjab

21

Orissa

04

Chandigarh

22

Chhattisgarh

05

Uttarakhand

23

Madhya Pradesh

06

Haryana

24

Gujarat

07

Delhi

25

Daman & Diu

08

Rajasthan

26

Dadra & Nagar Haveli

09

Uttar Pradesh

27

Maharashtra

10

Bihar

28

Andhra Pradesh (Old)

11

Sikkim

29

Karnataka

12

Arunachal Pradesh

30

Goa

13

Nagaland

31

Lakshadweep

14

Manipur

32

Kerala

15

Mizoram

33

Tamil Nadu

16

Tripura

34

Puducherry

17

Meghalaya

35

Andaman & Nicobar Islands

18

Assam

36

Telengana

  

37

Andhra Pradesh (New)

  • For Non-resident Foreign Taxpayers or Non-resident online service provider,  the state code is followed by 2 digit year, 3 digit country code and 5 digit serial number per year and another 3 alpha numeric digits . Sample GSTIN for Non-resident Foreign Taxpayers and Non-resident online service provider 

    Ex. 0717USA12345NF1.

  •  For UN Bodies, Embassies etc. and other notified persons, the term used is UIN. For the UIN, The state code is followed by two digit year, 3 digit country code and 5 digit serial number and another 3 digit of alpha numeric character. Sample UIN for Embassies, UN Bodies and other notified person etc:​

    Ex. 0717AUS12345UN1

What is to be done after getting GST number?

After getting GST number, a person has to file returns as applicable to him in timely manner. The various returns prescribed under GST are GSTR-1, GSTR-3B, CMP-08, GSTR-9, GSTR-9C, GSTR-5, GSTR-6 etc. For more details on GST return filing click here.

Frequently Asked Questions

Q. What is validity of GST number?

A. The GST number once allotted is valid until it is surrendered or cancelled. It does not have expiry.

Q. What if I do not apply GST number even though being liable to do so?

A. The proper office under GST can take action against you. He may initiate legal proceeding against you and you will be liable for penalty.

Q. Can I cancel my GST registration?

A. Yes , you may cancel your GST number at any time if you are no more liable for registration

Q. Is GST number to be taken state wise?

A. GST number is state specific. If you establishment in more than one state, then you need to take registration in all the states from where you are making taxable supply.

Q. Can a person voluntarily apply for GST number though not being liable to do so?

A. Yes, a person can apply for GST number even if he not liable to get registered.