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August 29, 2017

GST Registration

GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalized. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

As per the GST Council, entities in special category states with an annual turnover of Rs. 10 lakhs and above would be required to register under GST. All other entities in rest of India would be required to register for GST if annual turnover exceeds 20 lakhs. There are also various other criteria’s that could make an entity liable for obtaining GST registration – irrespective of annual sales turnover. Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST.

Tax Partner is the leading business services platform in India, offering a variety of services like Income Tax Filling, GST Return Filling, Private Limited Company Registration, Trademark Filling, and more. Tax Partner can help you obtain GST registration in India and maintain GST compliance through a proprietary GST accounting software. The average time taken to obtain GST Certificate is about 5 – 10 working days, subject to Government processing time and client document submission. Get a free consultation on GST and GST return filling by scheduling an appointment with an TAX PARTNER’S Advisor.

If you meet any of the conditions listed below, you should obtain GST registration within 30 days. [GST is expected to apply from 1st July 2017]:

  • Your turnover in a financial year exceeds Rs 20lakhs (Rs 10 lakhs for Special category states).
    • If your turnover includes supply of only those goods/services which are exempt under GST, this clause does not apply.
      • To test this threshold, your turnover should include aggregate value of all taxable supplies, exempt supplies, export of goods and/or services and inter-state supplies of a person having the same PAN
  • Every person who is registered under an earlier law will take registration under GST too.
  • Where a business which is registered has been transferred to someone, the transferee shall take registration with effect from the date of transfer.
  • Anyone who makes inter-state supply of goods and/or services.
  • Casual taxable person (see below)
  • Non-Resident taxable person (see below)
  • Agents of a supplier
  • Those paying tax under reverse charge mechanism
  • Input service distributor
  • E-commerce operator or aggregator
  • Person who supplies via e-commerce aggregator
  • Person  supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

Other notable points regarding registration :

  • 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 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.

Who is a ‘casual taxable person?

If you occasionally make supply of goods/services as a principal or agent or any other capacity, in a taxable territory, where GST applies but where you don’t have a fixed place of business. As per GST, you will be treated as a casual taxable person.

Who is a non-resident taxable person?

When you occasionally make supply of goods/services as a principal or agent or any other capacity, in a taxable territory, where GST applies but you don’t have a fixed place of business in India. As per GST, you will be treated as a non-resident taxable person.

Here are the rules for registration for these persons-

  • Registration shall be valid for 90 days.
  • It can be further extended by 90 days.
  • An advance deposit of tax liability for the period of registration must be made. Additional tax must be deposited if extension of registration is sought.
  • This tax deposited shall be used like ‘input credit’.

Exemption from GST Registration:

The following shall not be required to obtain registration and will be allotted a UIN (Unique Identification Number) instead. They can receive refund of taxes on notified supplies of goods/services received by them:

  • Any specialized agency of UNO (United Nations Organisation) or any multilateral financial institution and organisation notified under the United Nations Act, 1947
  • Consulate or Embassy of foreign countries
  • Any other person notified by the Board/Commissioner
  • The central government or state government may be based on the recommendation of the GST council, notify exemption from registration to specific persons.

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