What is the deadline for getting registered under GST?
An entity liable to be registered under GST should apply for registration within 30 days of meeting the criteria. Casual taxable persons and non-resident taxable persons are required to be registered under GST prior to commencing business.
Who is the primary authorized signatory?
Primary authorized signatory is the person who is primarily responsible to undertake tasks on the GST portal on behalf of the taxpayer. It could be the promoted of the business or any other trustworthy person nominated by the promoters of the business.
Is PAN mandatory for obtaining GST registration?
Yes. PAN is mandatory for obtaining GST registration. In the case of proprietorship, the PAN of the proprietor can be used. In case of LLP or Company or Trust or other types of legal entity, PAN must first be obtained for the entity. However, PAN is not mandatory for GST registration of foreigners and foreign companies. For non-resident taxable persons, GSTIN with a fixed expiry date will be provided based on the other documents provided to prove existence.
What is the validity of GST registration?
GST registration does not have an expiry date. Hence, it will be valid until it’s cancelled, surrendered or suspended.Only GST registration for non-resident taxable persons and casual taxable persons have a validity period that is fixed by the authorities while issuing the GST registration certificate.
Can a person with no GST registration collect GST?
No, only persons registered under GST are allowed to collect GST from the customers. A person not registered under GST cannot even claim input tax credit on the GST paid.
What is an E Way Bill?
An E-way bill is an electronic document which serves as an evidence to the movement of goods having a value of more than Rs. 50,000. It available to a supplier or an individual transporting goods. It has two components; Part A, with details such a GSTIN of the supplier and recipient, place of delivery, value of goods, HSN code, reason for transportation and part B, with details of the vehicle and transport documents.
What are the benefits of E Way bill?
It is a wholly digital interface which eliminates the need for state boundary checks. It will facilitate faster movement of goods and improve the turnaround time of trucks thus reducing costs for the supplier.
When should an E Way bill be generated?
As per rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior to the commencement of transport of goods.
Is it mandatory to generate an E Way bill?
It is mandatory to generate E Way bill in all cases wherein the value of consignment is more than Rs. 50,000. However, it is not necessary to generate one wherein the goods are being transported by a non- motorised conveyance or if they are being transported from the port, airport, air cargo complex and land customs station for clearance by customs.
What is the penalty for not generating an E Way bill?
Any taxable person who transports any goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to pay a penalty of Rs. 10,000 or the amount of tax sought to be evaded (whichever is higher).
What is a composition scheme?
Small businesses registered under the GST composition scheme can pay GST at a fixed rate of turnover every quarter and file quarterly GST returns. Composition levy would generally be related to small taxpayers who are supplying goods and services or both to the end consumer with a lower turnover.
What is the eligibility criteria?
Any existing taxpayer whose annual turnover did not cross the Rs.1.5 crore threshold in the preceding financial year. However, service providers with the exception of restaurants and caterers are not eligible, neither are casual taxable persons nor non-resident Indians.
Can input tax credit be claimed under composition scheme?
No input tax credit can be claimed by a dealer opting for composition scheme as he is out of the credit chain. He cannot take credit on his input supplies.
How long will the scheme be valid?
The validity of the composition scheme will depend upon the option exercised by a taxable person as long as all the conditions are fulfilled as specified in the law. However, individuals who are eligible for the scheme can also choose to opt-out of it by simply filing an application.
How will the aggregate turnover be computed?
It will be computed on an all India basis and will include the value of all taxable supplies. It would exclude inward supplies under reverse charge as well as central, state/union territory and integrated taxes and cess.
What is an inter state supply?
Inter-state supply of goods or service is when the supply location is a different state from the delivery location. In addition, the inter-state supply applies to the supply of goods or services by an SEZ unit or the export of goods or services.
What is intra-state supply?
An intra-state supply of goods or service applies when the place of supply is in the same state as the location of the supplier. Intra-state supply does not include the supply of goods/service to SEZ units or developers, imports or exports.
What is SGST?
As per the SGST Act, the State GST or SGST applies on intra-state supplies of goods and services. It is administered by the respective state government. SGST liability can be set off against SGST or IGST input tax credit only.
What is CGST?
Central GST or CGST would be levied under the CGST Act on the intra-state supplies of goods and services. Hence in case of intra-state supplies of goods and services, both the central and state government would combine their levies with an appropriate revenue sharing agreement between them.
What is IGST?
Integrated GST or IGST is the tax levied under the IGST Act on the supply of any goods and services in the course of inter-state trade across India. Further, IGST would include any supply of goods and services in the course of import into India and the export of goods and services from India.