GST

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GST

GST i.e. Goods and Services Tax has come into effect to merge most of the current taxes (Central and State level indirect taxes like VAT, Service tax, Excise, etc.) into a single mechanism of taxation. It is a comprehensive indirect tax levied on manufacture, sale and consumption of goods and services at national level. It is a multi-stage and consumption based tax, which means, the tax will be levied at each stage of the purchase and sale of goods and services.

GST registration is primarily required when your annual turnover is more than Rs. 20 Lakhs (Rs. 10 Lakhs for north east and hill states-Special category states). However, even if your sales are less than the prescribed limits, you can still opt for voluntary GST registration.

For businesses where GST registration is compulsory and they carry on their business without GST registration, it is considered as an offense under the law and can attract huge penalties when identified.

If you are looking for a GST consultant and want to get yourself registered, you can get in touch with Numbro. We are a company of professionals who have expertise in GST Registration, GST Implementation, GST Accounting and GST Consulting.

Advantages of GST Registration

  • A legal entity becomes recognized as a supplier of goods or services.
  • An individual becomes legally authorised to collect taxes from his customers and utilise the credit of the taxes paid to them.
  • An individual becomes legally authorised to claim Input Tax Credit of taxes paid by him to his suppliers and he can in turn utilize the same for payment of taxes due.
  • It allows smooth flow of Input Tax Credit from suppliers to recipients at the national level.
  • Can avail compostion scheme, applicable for small suppliers whose turnover is below a prescibed limit which is now 1.5 crores.

FAQs

Who requires GST registration?

GST registration is mandatory for:

  • Businesses whose annual turnover exceed the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North Eastern and hilly regions-Special Category States).
  • Individuals purchasing/selling goods or providing/receiving services outside the state irrespective of the limit mentioned in the above point.
  • Individuals who were registered under the earlier law (i.e. Service Tax, Excise, VAT, etc.)
  • Casual taxable person i.e. a person who occasionally or seasonally supplies goods or services or both in a territory where GST is applicable who does not have a fixed place of business.
  • Non-Resident taxable person i.e. a non-resident who occasionally supplies goods or services or both in a territory where GST is applicable who does not have a fixed place of business in India.
  • Agents of a supplier.
  • Input service distributors.
  • Individuals who are required to pay tax under the reverse charge mechanism.
  • An aggregator who provides services under his brand name or trade name.
  • Every E-commerce operator.
  • Individuals supplying goods and services through electronic commerce.
  • Individual 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.
  • Individuals who are required to deduct TDS under GST.

When is GST registration required?

GST regulations are applicable if your annual turnover exceeds the threshold limit of Rs. 20 lakhs. The threshold limit is Rs. 10 lakh for North Eastern states (Arunachal Pradesh, Assam, Manipur, Nagaland, Meghalaya, Mizoram and Tripura) and hilly regions (Uttarakhand, Jammu and Kashmir, Himachal Pradesh and Sikkim).

Key Points:

  • GST registration is not required if your turnover includes the supply of only those goods or services which are exempt under GST.
  • At the time of calculation of turnover, both taxable and non-taxable goods and services are to be considered.

What is Composition Scheme?

Composition Scheme under GST is introduced for small businesses and taxpayers whose turnover is not more than 1.5 crores. The scheme is introduced so as to relieve them from the burden of compliance provisions under the law. Under composition scheme, the government has provided an option to these small businesses where they can opt to pay a fixed percentage of turnover as tax every month.


What are the compliances to be made?

As per GST provisions, the taxpayer has to furnish three returns monthly and one annual return. In other words, any business will require to file 37 returns in a financial year.

Moreover, the law has defined separate returns for each category of taxpayer. For example, taxpayer registered under the composition scheme, input service distributor, a person liable to deduct or collect the tax (TDS/TCS) have to furnish separate returns.


What if GST registration is not done?

Not registering under GST law is considered as an offence and is subject to penalty. The penalty if the offence is deliberately made is 100% of the tax amount due or Rs. 10,000, whichever is higher.

Therefore, we advise to get GST registration done as soon as possible. You can get in touch with Numbro for all your GST related requirements like GST Registration, GST Implementation, GST Accounting and GST Consulting.


What if GST is collected without GST registration?

Entities are not allowed to collect GST from a customer or claim input tax credit of GST paid if they have not done GST registration. In case, if they breach the law, they could be penalised heavily.


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