Every Business whose annual turnover exceeds Rs 40 lakh (for special states, the amount is Rs 10 lakh) or supply of goods and services inter-statehas to register for GST.
Important update as on 03-04-2020
The time limit for completion or filing return has been extended to June 30, 2020, where the time limit falls between the period from March 20, 2020 to June 29, 2020. It does not include cases in which a Person needs to obtain the GST registration in section 25 (Normal registration) and 27 (Registration as non-resident taxpayer/ casual taxpayer) of the CGST law act.
Please follow a step-by-step guide on how to complete the online registration process on the GST Portal:
Step 1: Go to GST Portal. Click on Registration under Service Tab
Every Business whose annual turnover exceeds Rs 40 lakh (for special states, the amount is Rs 10 lakh) or supply of goods and services inter-statehas to register for GST.
Important update as on 03-04-2020
The time limit for completion or filing return has been extended to June 30, 2020, where the time limit falls between the period from March 20, 2020 to June 29, 2020. It does not include cases in which a Person needs to obtain the GST registration in section 25 (Normal registration) and 27 (Registration as non-resident taxpayer/ casual taxpayer) of the CGST law act.
Please follow a step-by-step guide on how to complete the online registration process on the GST Portal:
The goods and services tax (GST) is a value added tax that applies to most goods and services sold for internal consumption. The Goods and Services Tax Law was approved in Parliament on March 29, 2017. The Law went into effect on July 1, 2017; The Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is applied to each value added.
In simple words, the goods and services tax (GST) is an indirect tax that is applied to the supply of goods and services. This GST law has replaced many of the indirect tax laws that previously existed in India. The GST is paid by consumers, but the companies that sell the goods and services refer it to the government. In effect, goods and service tax generate revenue for the government.
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Understanding the Goods and Services Tax (GST)
The GST is an indirect sales tax that is applied to the cost of certain goods and services.. The business adds the GST to the product price, and a customer who purchases the product pays the sale price plus the GST. The part of the GST is collected by the company or the seller and sent to the government.
How Goods and Services Tax System Working
Most countries with a GST have a single unified GST system, which means that a single tax rate is applied across the country. A country with a unified GST platform merges central taxes (eg, sales tax, consumption tax, and service tax) with state-level taxes (eg, entertainment tax, entry tax) , transfer tax, sin tax and luxury tax) and collects them as a single tax. These countries tax almost everything at a single rate.
Double tax structures on goods and services (GST)
Only Brazil and Canada , have a dual GST structure. Compared to a unified GST economy where the federal government collects taxes and then distributes them to the states, in a dual system, the federal GST is applied in addition to the state sales tax. In Canada, for example, the federal government applies a 5% tax and some provinces / states also impose a provincial state tax (PST), which ranges from 7% to 10%. In this case, the consumer receipt will clearly have the GST and PST rate applied to their purchase value.
GST Registration?
In the GST Regime, companies whose turnover exceeds Rs. 40 lakhs * (Rs 10 lakhs for NE and mountain states) are required to register as a normal taxable person. This registration process is called GST registration.
For certain companies, registration under GST is mandatory. If the organization conducts business without registering under GST, it will be a crime under GST and heavy penalties will apply.
GST registration generally takes 2-7 business days. We will help you sign up for GST in 3 easy steps.
* CBIC has reported the increase in threshold rotation from Rs 20 lakhs to Rs 40 lakhs. The notification will take effect on April 1, 2019.
Who Required for GST Registration
1. People registered under the Pre-GST law (i.e. excise, VAT, service tax, etc.)
2. Companies with a turnover above the limit of Rs. 40 Lakhs * (Rs.10 Lakhs for the Northeast States, J&K, Himachal Pradesh and Uttarakhand)
3. Occasional taxable person / non-resident taxable person
4. Inbound service provider and distributor agents
5. Taxpayers under the reverse charge mechanism
6. Person supplying through the e-commerce aggregator
7. Each e-commerce aggregator
8. Person who provides online information and access to the database or recovery services from a place outside India to a person in India, who is not a registered taxable person
* CBIC has reported the increase in threshold rotation from Rs 20 lakhs to Rs 40 lakhs. The notification will take effect on April 1, 2019.
Documents Required for GST Registration
1. Applicant's PAN
2. Aadhaar card
3. Proof of company registration or certificate of incorporation
4. Proof of identity and address of promoters / director with photographs
5. Proof of address of place of business
6. Bank account statement / canceled check
7. Digital signature
8. Board Resolution for Authorized Signatory / Letter of Authorization
What is the GST registration process?
The Goods and Services Tax (GST) registration services at TaxCaller our experts help you register your GST for your business and obtain your GSTIN.
The TaxCaller GST experts will guide you in the applicability and compliance of GST for your business and will make your business register under GST.
Penalty for not registering under GST
An offender who does not pay taxes or makes short payments (genuine errors) has to pay a fine of 10% of the amount of tax owed subject to a minimum of Rs. 10,000.
The fine will be 100% of the amount of the tax owed when the criminal has deliberately evaded the payment of taxes.
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GST return is a format where a taxpayer registered under the Goods and Services Tax (GST) law has to file for each registration separately. Also, the number of GST returns to be filed will be based on the type of taxpayer, such as regular taxpayer, composition dealer, e-commerce operator, TDS deductor, non-resident taxpayer, Input Service Distributor(ISD) etc. Usually, a regular taxpayer has to file two returns per month (GSTR-1, GSTR-3B) and an annual return (GSTR-9/9C) for each GST registration separately.
1. GSTR-1
GSTR-1 is the return to be furnished for reporting details of all outward supplies of goods and services made, or in other words, sales transactions made during a tax period, and also for reporting debit and credit notes issued. Any amendments to sales invoices made, even pertaining to previous tax periods, should be reported in the GSTR-1 return.
GSTR-1 is to be filed by all normal taxpayers who are registered under GST. It is to be filed monthly, except in the case of small taxpayers with turnover up to Rs.1.5 crore in the previous financial year, who can file the same on a quarterly basis.
2. GSTR-2A
GSTR-2A is the return containing details of all inward supplies of goods and services i.e. purchases made from registered suppliers during a tax period. The data is auto-populated based on data filed by the suppliers in their GSTR-1 return. GSTR-2A is a read-only return and no action can be taken.
3. GSTR-2
GSTR-2 is the return for reporting the inward supplies of goods and services i.e. the purchases made during a tax period. The details in the GSTR-2 return are auto-populated from the GSTR-2A. Unlike GSTR-2A, the GSTR-2 return can be edited.
GSTR-2 is to be filed by all normal taxpayers registered under GST, however, the filing of the same has been suspended ever since the inception of GST.
4. GSTR-3
GSTR-3 is a monthly summary return for furnishing summarized details of all outward supplies made, inward supplies received and input tax credit claimed, along with details of the tax liability and taxes paid. This return is auto-generated on the basis of the GSTR-1 and GSTR-2 returns filed.
GSTR-3 is to be filed by all normal taxpayers registered under GST, however, the filing of the same has been suspended ever since the inception of GST.
5. GSTR-3B
GSTR-3B is a monthly self-declaration to be filed, for furnishing summarized details of all outward supplies made, input tax credit claimed, tax liability ascertained and taxes paid.
GSTR-3B is to be filed by all normal taxpayers registered under GST.
6. GSTR-4 / CMP-08
GSTR-4 is the return that was to be filed by taxpayers who have opted for the Composition Scheme under GST. CMP-08 is the return which has replaced the now erstwhile GSTR-4. The Composition Scheme is a scheme in which taxpayers with turnover up to Rs.1.5 crores can opt into and pay taxes at a fixed rate on the turnover declared.
The CMP-08 return is to be filed on a quarterly basis.
7. GSTR-5
GSTR-5 is the return to be filed by non-resident foreign taxpayers, who are registered under GST and carry out business transactions in India. The return contains details of all outward supplies made, inward supplies received, credit/debit notes, tax liability and taxes paid.
The GSTR-5 return is to be filed monthly for each month that the taxpayer is registered under GST in India.
8. GSTR-6
GSTR-6 is a monthly return to be filed by an Input Service Distributor (ISD). It will contain details of input tax credit received and distributed by the ISD. It will further contain details of all documents issued for the distribution of input credit and the manner of distribution.
9. GSTR-7
GSTR-7 is a monthly return to be filed by persons required to deduct TDS (Tax deducted at source) under GST. GSTR 7 will contain details of TDS deducted, the TDS liability payable and paid and TDS refund claimed, if any.
10. GSTR-8
GSTR-8 is a monthly return to be filed by e-commerce operators registered under the GST who are required to collect tax at source (TCS). GSTR-8 will contain details of all supplies made through the E-commerce platform, and the TCS collected on the same.
The GSTR-8 return is to be filed on a monthly basis.
11. GSTR-9
GSTR-9 is the annual return to be filed by taxpayers registered under GST. It will contain details of all outward supplies made, inward supplies received during the relevant previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes, along with details of taxes payable and paid. It is a consolidation of all the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that year.
GSTR-9 is required to be filed by all taxpayers registered under GST*, except taxpayers who have opted for the Composition Scheme, Casual Taxable Persons, Input Service Distributors, Non-resident Taxable Persons and persons paying TDS under section 51 of CGST Act.
*As per the CBIC notification 47/2019, the annual return under GST for taxpayers having an aggregate turnover which does not exceed Rs.2 crore has been made optional for FY 2017-18 and FY 2018-19.
12. GSTR-9A
GSTR-9A is the annual return to be filed by taxpayers who have registered under the Composition Scheme in a financial year*. It is a consolidation of all the quarterly returns filed during that financial year.
*GSTR-9A filing for Composition taxpayers has been waived off for FY 2017-18 and FY 2018-19 as per the decision taken in the 27th GST Council meeting.
13. GSTR-9C
GSTR-9C is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover exceeds Rs.2 crore in a financial year. The registered person has to get their books of accounts audited by a Chartered/Cost Accountant. The statement of reconciliation is between these audited financial statements of the taxpayer and the annual return GSTR-9 that has been filed.
GSTR-9C is to be filed for every GSTIN, hence, one PAN can have multiple GSTR-9C forms being filed.
As per the CBIC notification 16/2020, GSTR-9C is waived off for the taxpayers with an aggregate turnover of more than Rs 5 crore for the financial year 2018-19.
14. GSTR-10
GSTR-10 is to be filed by a taxable person whose registered has been cancelled or surrendered. This return is also called a final return and has to be filed within 3 months from the date of cancellation or cancellation order, whichever is earlier.
15. GSTR-11
GSTR-11 is the return to be filed by persons who have been issued a Unique Identity Number(UIN) in order to get a refund under GST for the goods and services purchased by them in India. UIN is a classification made for foreign diplomatic missions and embassies not liable to tax in India, for the purpose of getting a refund of taxes. GSTR-11 will contain details of inward supplies received and refund claimed.
Due Dates of Filing GST Returns
These returns are as per the CGST Act*
GSTR- 1
Details of outward supplies of taxable goods and/or services affected
Monthly
11th* of the next month with effect from October 2018
*Previously, the due date was 10th
GSTR-3B
Simple Return in which summary of outward supplies along with Input Tax Credit is declared and payment of tax is affected by taxpayer
In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.GST registration usually takes between 2-6 working days. We’ll help you to register for GST in 3 easy steps.*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 201Who Should Register for GST?Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)Casual taxable person / Non-Resident taxable personAgents of a supplier & Input service distributorThose paying tax under the reverse charge mechanismPerson who supplies via e-commerce aggregatorEvery e-commerce aggregatorPerson 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*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.What is GST Registration Process?The Goods And Services Tax (GST) Registration services at ClearTax helps you to get your business GST registered and obtain your GSTIN.ClearTax GST experts will guide you on the applicability and compliances under GST for your business and get your business registered under GST.
All registered taxpayers exporting goods or services will now be required to submit a Letter of Commitment (LUT) in GST RFD-11 form on the GSTN common portal to conduct exports without IGST payment.
When to file / file? - The commitment letter must be submitted / submitted online before exporting the goods / services.
Prior to this, exporters had to manually submit the completed and signed RFD-11 on commercial letterhead in duplicate-
1. One for the Deputy Commissioner / Jurisdictional Assistant who has jurisdiction over their main place of business where verification with Export documents is done through ICEGATE
2. Another along with export documents to the customs clearance authority.
Like the previous excise tax regime, this led to exporters wasting considerable time and operating expenses on this compliance.
Finally, this process has now been streamlined and made simple and fast, giving transparency to the entire export process by all the stakeholders involved.
Please note that the furnishing of bond must be done on non-judicial stamp paper and therefore requires manual submission.
Important update!
File fresh LUT for financial year 2020-21
LUT will be valid for one financial year. If LUT was file in financial year 2019-20, then the validity expiration date of that LUT is March 31, 2020. Therefore, you must provide a new LUT for financial year 2020-21. The deadline to provide such LUT for the financial year 2020-21 extends from March 31, 2020 to June 30, 2020.
Please follow this steps on GST Potal to furnish letter of undertaking (LUT) :
