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IMPORTANCE OF REGISTRATION UNDER GST

For a registered tax payer already registered under previous taxation laws and for a tax payer who is proposing to get registered under new law for the first time registration under GST becomes important for them for the following reasons –

  1. Person is recognized legally as a supplier of goods or services or both
  2. He is authorized to collect GST from customers and deposit with the government
  3. He can issue tax invoice and pass Input tax Credits to his customers
  4. He shall be required to file returns and comply with all compliances mandated by government.

Persons required to obtain GST registration:There is a long list where the taxablepersons may find their place in GST. But do they have to obtain compulsory registration under GST by virtue of law and what are the registration procedures related to such new GST registration is the study we are going to observe in this article.

  1. A. Persons not required to get registered:
  • Any person engaged exclusively in the business of supplying goods or services or both which are not liable to tax or are wholly exempt.
  • An Agriculturist.
  • Any class of person as may be notified by the Government on the recommendation ofthe Council.
  1. Compulsory registration category list:
  • Suppliers holding license under earlier laws : By virtue of law has to migrate to GST following the GST registration procedures applicable
  • Persons required to make payment under Reverse Charge : By default provision of law
  • Persons supplying goods through Electronic Commerce Operator
  • Persons required to deduct tax
  • Electronic commerce Operator/Online data base access & Retrieval service operator
  • Inter-state Taxable Supplier
  • Input Service Distributor (ISD)
  • Casual and Non-resident Supplier

How to determine the criteria for compulsory registration: The above listed person’s would be required to get compulsory registration under GST irrespective of the turnover achieved in the preceding financial year

  1. Person Liable under threshold registration:Here the criteria for categorizing is simply based on aggregate turnover achieved during the preceding financial year. The turnover criteria is specified under GST law as follows

(a) For special category states:The said turn over limit has said to be fixed at Rs. 10 lacs

(b) For other states: The turnover limit is set as Rs. 20 lacs.

Any person who is migrating from earlier tax laws or whose supplies where earlier exempted before Implementation of GST but now made taxable under after GST has to consider the turn over criteria result apply them and then decide for GST registration.

  1. Voluntary registration category:Any person who voluntarily wants to get registered or one who doesn’t fall in any of the category above, can even obtain registration and for him the provisions of this Act, will be applicable as is applicable to a registered taxable person, and such person shall apply for new GST registration with no benefit of threshold limit.
  2. GST registration – Suo Moto by department:A taxable person falls under this category when there is any survey, inspection, search, enquiry of any other proceeding is conducted against him under the Act, and where in ifthe proper office finds that a person is liable for registration, he may register the said person on a temporary basis and issue an order in Form GST REG-12.

Procedural aspects of GST registration:Registration can be applied in Form REG 1 by all persons other than

  • a non-resident taxable person
  • a person required to deduct tax at source
  • a person required to collect tax at source
  • A person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient.
  1. New GST Registration process:This is divided into 3 stages
  2. Application:

The process begins with making an application in Form GST Reg-01 requiring to submit PAN and personal details such as (email ID and mobile number) of tax payer and also requires the tax payer to e verify the personal details filled in by providing the one time password served on their mail ID and mobile number used for new GST registration purpose.

After finishing the application and submitting on the portal, an acknowledgement is issued to tax payers which serve as a reference for making log in on the GST portal.

After creating a successful log in section, the tax payer has to fill other details as required by the GST network to complete the GST registration process.

  1. Verification:

Since the details filled or on self-declaration basis, the receiving officer at the other end may call for few particulars in few cases. Here the tax payer interact with the officer by replying to the queries raised by the officer in question sheet (FormGST Reg-03) by supplying the information asked in answer sheet (GST Form Reg-04)

  1. Approval/Rejection:

The results for pass or fail or the GST registration status of it (approval/ rejection of application) is communicated to registrant in following manner

  • If your application is marked cancelled it will be communicated to you in Form GST Reg- 05. Note : An application for GST registration is rejected only on grounds when the clarifications submitted by the registrants are found in satisfactory to the officer. A proper officer cannot otherwise reject the application on any other grounds.
  • If the application is not rejected then your application will be marked with seal of GST Reg-06 wherein the registrant is issued a certificate of registration as proof of registration under GST law.
  1. Validity of GST registration certificate: Certificate of registration is effective from:
  • From the date on which the person becomes liable to registration – applied within 30 days
  • Date of grant of registration – in case applied after 30 days.

III. GST registration process: Special persons

  1. Persons required to deduct TDS/collect TCS:

Person required to deduct TDS / TCS shall apply for registration in FORM GST REG-07. The proper officer may verify such application made and grant certificate of registration in Form GST Reg- 06 or may reject such application on unsatisfactory clarifications received from registrant by issuing rejection notice in Form Reg-08

  1. Registration for Non- Resident taxable person:A Nonresident taxable person shall apply registration in FORM GST REG-09. Such application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or it’s Permanent Account Number, if available.
  2. Registration of person’s who provide online data base access & Retrieval services:

Any person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient shall submit an application for registration in FORM GST REG-10.

  1. Documents required for registration:Here are the list of documents needed for GST registration:
  • PAN Card of the Business and Applicant : The first thing in GST registration documents list is to get the PAN (Permanent Account Number) of the business and of the authorized signatories/applicant (Directors / Partners / Proprietor)
  • Contact details and a valid Email address: A valid mobile number and an email address of the Primary Authorized Signatory is required to be filled at the time of GST registration.
  • Proof of Place of business: Principal Place of Business is the primary location within the State where a taxpayer’s business is performed or where the business’s books of accounts and records are kept.

Conclusion:I have tried to provide you with a complete guide on GST registration for you. You can have more access to information at 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.

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