FAQ on Registration for GST
Q. What is GSTIN?
A. Goods and Services Tax Identification Number (GSTIN) is a 15 digits state-wise PAN-based number to be used to identify businesses registered under GST.
Q. How does GST apply to business?
A.GST regulations are applicable if your annual turnover is Rs. 20 lakh or above. In case of North Eastern states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura) and hilly regions i.e. Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Sikkim, the threshold limit is Rs. 10 lakh.The registration is mandatory on crossing the annual turnover limit of Rs.19,00,000 ( for special category states it is Rs. 9,00,000).
- If your turnover includes supply of only those goods/services which are exempt under GST, then registration is not required
- While calculating the turnover both taxable and non-taxable goods and services are to be included
- One registration shall be required for each state. The taxpayer can choose to get separate registrations for its different business verticals in the State.
Q. What are the cases where GST registration is mandatory irrespective of turnover?
- Those making inter-state supply of goods/services
- Any person who supplies goods/services in a taxable territory and has no fixed place of business – referred to as casual taxable persons. Registration issued to such a person is valid for a period of 90 days.
- Any person who supplies goods/services and has no fixed place of business in India – referred to as non-resident taxable persons. Registration issued to such a person is valid for a period of 90 days.
- Person required to pay tax under reverse charge mechanism. Reverse charge mechanism means where the person receiving the goods/services has to pay tax instead of the supplier.
- Agents or any other person who makes supply on behalf of other registered taxable persons
- Distributors or input service distributors. This person has the same PAN as the office of the supplier. This person is an officer of the supplier, he receives supplies and issues tax invoice to distribute credit of CGST/SGST/IGST.
- E-Commerce Operator
- Persons who supplies (except branded services) via an e-commerce operator Aggregator supplying services under his brand name
- 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.
Case. I run a tours and travel agency in Assam. My annual turnover is Rs. 8 lakh. Do I need to register under GST?
A. Businesses in the Northeastern and hill states with annual turnover below Rs.10 lakh have been kept out of the GST net. Since your turnover is not exceeding the limit of Rs. 10 lakh, GST registration is not mandatory for you. In following cases registration is mandatory even if turnover limit has not been crossed:
- For claiming input of the tax paid on purchase from supplier
- If your supplier is registered under GST and wants to claim the credit of his purchase, he can do so only if you are able to issue a GST invoice, thus GST registration becomes mandatory in the case
Case. I run a departmental store in an Indian state and my business is already registered under State VAT(State Value Added Tax). Do I need to apply for fresh registration under GST?
A. If you are an existing taxpayer you will be transitioned to GST which simply means that now you will be considered as registered under GST. Initially, a provisional registration ID will be allotted which will be replaced by Final Registration ID on fulfillment of government conditions.
Q. Who is an existing taxpayer?
A. An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act. Existing taxpayers include taxpayers already registered under :-
1. Central Excise
2. Service Tax
3. State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
4. Entry Tax
5. Luxury Tax
6. Entertainment Tax (except levied by the local bodies)
Q. Do i need PAN to apply for GST registration?
A. PAN is mandatory to apply for GST registration.
Q. For login to the GST Common Portal, can I use the username and password which I use to login as State Registrant?
A. No, you cannot use the username or password that you use to login to the State VAT Portal.
For the first time login to the GST Common Portal, you need to provide the username and password that you received from the State VAT or Centre Tax Department. For subsequent login, you need to create a username and password during enrolment at the GST Common Portal. You can then use the username and password that you created to login at the GST Common Portal.
Q. Which information and documents are required to enrol with GST?
A. Before enrolling with the GST Common Portal, you must ensure to have the following information:
- Provisional ID received from State/ Central Authorities
- Password received from the State/ Central Authorities
- Valid E-mail Address
- Valid Mobile Number
- Bank Account Number
- Bank IFSC
Q. Earlier I had opted for composition scheme under VAT. Is the concept of composition scheme still there under GST?
A.Yes, the entities with an annual turnover of Rs 50 lakh and less can avoid collecting GST by opting for the Composition Levy.
Q. Is there any time Limit for GST Registration?
A. Yes, GST is applicable from 1st July, 2017 and the registration limit is until 31st Jan 2017.
Q. Who is a non-resident taxable person under GST?
A. 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. Key pointers:
- 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’.
Q. Who is a ‘casual taxable person?
A. 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.
Q. What is the concept of Composition Levy?
A. To help small businesses avoid the hassles of collecting GST, claiming input credit etc the Model GST law has proposed a simpler levy. This levy is called Composition Levy.
- Those with turnover of Rs 50 lakhs or less can opt for this levy. (Note that this is optional).
- Instead of collecting GST you will pay a certain % of levy. This levy or tax will be not less than 1% of the turnover of the financial year. The government will announce the levy % in due course.
- This levy cannot be availed by those who make inter-state supply of goods/services. It can only be availed by those who make intra-state supply of goods/services
- This levy is linked to your PAN. So if you have opted it for a business with a particular PAN, composition levy shall apply to all your businesses with the same PAN
- No input credit shall be allowed to be claimed by you
- GST or any other tax shall not be collected by you from the recipient of your supplies.
Q. How will business returns be filed under GST Law?
A. Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly, there are separate returns for a taxpayer registered under the composition scheme and a taxpayer registered as an Input Service Distributor.
Q. Who are exempted from GST Registration?
A. 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 specialised 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, based on the recommendation of the GST council, notify exemption from registration to specific persons.
Q. What would the process of registration be under the proposed GST regime for new businesses/applicants?
A. Each taxpayer will be allotted a state-wise Permanent Account Number (PAN) based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Those tax payers who are already registered under the current state or central tax regime, will be migrated to the common portal and granted GST registration suo motto with a request to provide additional information where required online.
A new applicant would be allowed to apply for registration on the common portal without prior enrollment. Once a complete application is submitted online, a message asking for the confirmation of the data submitted will be sent through e-mail and SMS to the authorised signatory of the applicant. On receipt of such a confirmation from the authorised signatory, an acknowledgement number would be generated and intimated to the applicant. Once the application is approved and the GSTIN is generated, the same along with Log-in ID and temporary password will be sent to the authorized signatory.
Q. What is the application process under GST?Steps for applying for GST
- Every person, other than a non-resident taxable person who wants to register under GST must provide his Permanent Account Number (PAN), mobile number and e-mail address in Part A of FORM GST REG-01.
- The PAN shall be validated online via the Common Portal from the database maintained by the Central Board of Direct Taxes
- The mobile number is verified through a one-time password sent to the said mobile number.
- The e-mail address is verified through a separate one-time password sent to the said e-mail address.
- On successful verification of the PAN, mobile number and e-mail address, an application reference number (ARN) is generated and sent on the mobile number and e-mail address provided.
- Using the application reference number or ARN generated Part B of FORM GST REG-01 has to be submitted. It must be signed and documents specified in the Form must be submitted at the Common Portal either directly or through a Facilitation Centre, notified by the Board.
Q. How can I view a full guide on registration?
A. To view the artefacts, you need to perform the following steps:
1. Access the www.gst.gov.in URL. The GST Home page is displayed.
2. Under the Help menu given below the GST Home page, click the relevant artefact option. The relevant artefact is displayed.