GST Advisory & Compliance

Introduction

The Goods and Services Tax (GST) was launched across India on 1st July 2017, with Jammu & Kashmir joining the purview on 8th July 2017. This marked the transition of the entire nation into a unified indirect tax system. GST applies to all traders, manufacturers, and service providers, subsuming various taxes such as Service Tax, Central Excise, State Excise, and Entertainment Tax.

GST is leviable on the supply of goods or services, or both, with the exception of alcoholic liquor for human consumption.

Exempted Products

Currently, five petroleum products remain outside the immediate ambit of GST:

1. Petroleum Crude

2. High-Speed Diesel

3. Motor Spirit (Petrol)

4. Aviation Turbine Fuel (ATF)

5. Natural Gas

These products will be brought under GST from a date to be notified by the Government upon the recommendation of the GST Council.

Advantages of GST Registration

Registration under the GST law grants a business legal recognition and several operational benefits:

• Elimination of Cascading Effect: Removes "tax on tax," reducing the overall tax burden and improving global competitiveness.

• Input Tax Credit (ITC): Registered persons can claim credit for taxes paid on inward supplies (purchases) to offset tax liability on outward supplies (sales).

• Simplified Compliance: A unified return filing system reduces the number of compliances compared to the previous regime.

• Legal Authorization: Grants the legal authority to collect tax from customers and pass on the credit of taxes paid.

Liability for Registration

1. Threshold-Based Registration

A business is required to register if its aggregate turnover in a financial year exceeds the following limits:

*Special Category States: Manipur, Mizoram, Nagaland, and Tripura. **The ₹40 Lakh limit does not apply to Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Telangana, and Puducherry.

2. Compulsory Registration

Regardless of turnover, registration is mandatory for:

• Persons making any inter-state taxable supply of goods.

• Casual Taxable Persons and Non-Resident Taxable Persons.

• Persons required to pay tax under the Reverse Charge Mechanism (RCM).

• Electronic Commerce Operators (ECOs) and those supplying through them (subject to specific service thresholds).

• Input Service Distributors (ISD).

• Providers of OIDAR services from outside India to non-registered persons in India.

3. Voluntary Registration

Entities not meeting the mandatory criteria may choose to register voluntarily. This facilitates seamless inter-state trade, improves compliance ratings, and assists in securing credit from financial institutions.

The GSTIN and Documentation

The GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit, PAN-based identification number.

Required Documentation by Entity Type

The Registration Process

The registration process is conducted entirely online through the GST Common Portal. There are no government fees for registration.

1. Part A (TRN Generation): The applicant submits their PAN, mobile number, and email address. Upon validation, a Temporary Reference Number (TRN) is generated.

2. Part B (Application): Using the TRN, the applicant uploads business details, jurisdiction, and supporting documents.

3. ARN Generation: On successful submission, an Application Reference Number (ARN) is issued.

4. Verification: The Proper Officer examines the application. If Aadhaar authentication is successful and documents are in order, registration is typically granted within 7 working days.

5. Clarification: If discrepancies are found, a notice is issued. The applicant must provide clarification within 7 working days.

6. Physical Verification: In cases where Aadhaar authentication is not opted/failed, or the officer deems it necessary, a physical verification of the business premises may be conducted before granting the GSTIN.

Conclusion

Hence, if you fall under the GST registration limit and still don't have a GST registration and want to apply for a GST registration number, you can walk in or contact AJAY D KUMAR $ ASSOCIATES to register your business under GST. Being the best GST registration service provider, we will be happy to help you apply for a GST number.