GST Registration in India – 25 Questions Answered

by Paras Mehra 11.1K

1. What is GST registration?

Goods & Services Tax (GST) is the single indirect tax in India which is proposed to be effective from 1st July, 2017 replacing all the existing taxes like VAT, Excise, Service tax, some custom duties etc.

In other words, if you are a manufacturer, trader or service provider, you need to take GST registration and proceed on your business. Under GST each and every invoice shall be uploaded to the government website and monthly 3 returns are required to be filed.

 

2. Why do I need GST registration in India?

GST will be the single consolidated taxation system in India. If you want to start any business then GST registration is almost mandatory. Therefore, it is advised to register under GST and follow the due compliance properly in order to be safe.

 

3. What all documents are required for GST registration?

The GST registration is completely online and all the required documents shall be uploaded on the website. The following documents shall be required for GST registration:

 

              - Partnership deed (In case of partnership)

                   - Registration certificate (In case of company)

                   - Proof of Constitution in case of society, trust, club, government department, AOP/BOI, Local authority.

 

For own premises – Any document in support of the ownership of the premises like latest Property tax receipt or municipal khata copy or copy of electricity bill.

For rented or leased premises –  A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

For premises not covered in (a) & (b) above –  A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.

 

Scanned copy of the first page of Bank passbook / one page of Bank Statement

Opening page of the Bank Passbook held in the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFSC and Branch details.

The format of authorization form may be taken from the appendix of this book.

 

In case you are still confused, email us at info@hubco.in

 

4. I need a New GST registration, how can I proceed to have GST registration?

Once GST is live, you just need to collect the documents as stated above and went on to the government website and apply for GST registration. The GST registration is typical and any mistake during the process may result in troubles later on.

Hence, it is advised to take the help of a professional before applying.

 

5. What is the cost & time for GST registration in India?

The government cost for GST registration is zero and government is not planning to charge anytime soon. Therefore, you can apply for GST registration free of cost.

However, the professional may charge the professional fees for GST registration in India. Further, it takes around 3 to 7 days for GST registration.

 

6. I am a registered dealer under VAT and I have 8 branches in Mumbai, Kerala, Bangalore, Delhi etc, do I need to take separate registration under GST?

GST registrations are state specific and remember the golden rule. If you are supplying goods or services from a place and then you need to take GST registration for that place and you can call it your branch.

This is because under GST regime, supply factor is most important. Hence, if you have 8 branches all over India, and you are actually selling/supplying goods/services from these branches, then you shall have to take GST registration for each of your branch in a state.

You can use the GST software to manage your business properly.

 

7. What is the meaning of multiple registrations under GST?

In layman words, the multiple GST registrations are required for each of the business vertical in a state or for each of the branch outside the state.

Unlike service tax, where centralized registration facility was there, under GST there is no concept of centralized registration and hence, multiple registrations are mandatory.

Further, the business vertical is defined as follows:

‘Business Vertical’ [Clause (18) of section 2] means a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments.

 

8. Who all are not liable to register under GST?

There are only two categories of person which are not liable for registration which are as follows;

 

9. What is the basic exemption limit under  GST?

The basic exemption limit under GST is Rs.20 lakh (10 lakh in case of north eastern states). Further, if you are a supplier supplying good/services for less than 20 lakh then you are not liable for GST registration.

However, the basic exemption limit shall not apply to the following persons:

 

10. Who is an agriculturist, for the purpose of GST registration?

Agriculturist means a person who cultivates land personally, for the purposes of agriculture [clause 8 of section 2]. The aforesaid definition has two concepts under it which are as follows;

Further agriculture has been defined as follows:

 

‘Agriculture’ includes floriculture, horticulture, sericulture, the raising of crops, grass or garden produce and also grazing, but does not include dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants; [Clause 7 of Section 2]

‘To Cultivates land personally’ [Clause (103) of Section 2] means to carry on any agricultural operation on one‘s own account-

(a) by one‘s own labour, or

(b) by the labour of one‘s family, or

(c) by servants on wages payable in cash or kind (but not in crop share) or by hired labour under one‘s personal supervision or the personal supervision of any member of one‘s family;

Explanation 1. - A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour.

Explanation 2. - In the case of a Hindu Undivided Family, land shall be deemed to be cultivated personally, if it is cultivated by any member of such family.

 

11. Who all are liable to mandatory to register for GST?

As per GST act and rules, there are few categories of person who are required to register under GST mandatorily. The most common and important are as follows:

For details, refer question 9 above.

 

12. I sell on ecommerce websites like Amazon and flipkart, so how should I proceed with GST registration in India?

If you want to sell on Amazon and Flipkart, then need to take GST registration even if your revenue is under basic exemption limit. You can follow the following steps:

 

13. Is there any mandatory security deposit to be kept for GST registration, like we need to deposit it for VAT registration?

 

No, there is no required for any type of deposit for GST registration. Earlier, under VAT laws there used to have a required to place fixed deposit with the government. However, under GST, there is no requirement as such.

 

14. My sales are covered under basic exemption limit of Rs.20 lakh; can I register under GST voluntarily?

There are various people in India who starts their business as a proprietor. To start as a proprietor, they need a business registration otherwise bank will not open the current account in their business name. Hence, people register with the local laws voluntary to start their business.

However, once registered then you need to follow all the compliance like any other registered taxable person.

 

15. Explain the GST registration process? Is GST registration process is completely online?

 

The registration process under GST is prescribed in the GST registration rules. However, every person shall have a permanent account number issued under the Income Tax Act, 1961 in order to be eligible for grant of registration. [Sub section 4 of Section 23].

However, a non resident taxable person may be granted registration on the basis of any other document discussed later on in this chapter.

The flow of registration as prescribed under rules is as under;

Rule 1: Application for Registration: The application for registration shall be made online in form GST REG – 01 on the common portal either directly or through facilitation centers.

Rule 2: Verification of the application: Once the application shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within three common working days from the date of submission of application.

Rule 3: Issue of Registration Certificate: A certificate of registration in FORM GST REG-06 for the principal place of business and for every additional place of business shall be made available to the applicant on the Common Portal.

 

16. What is GST REG – 01?

GST REG – 01 is the GST registration form which is required to be filed online in order to get the GST registration in India.

 

17. What is meant by deemed registration under GST?

If proper officer fails to take any action within three common working days from the date of submission of application, or within seven common working days from the date of receipt of clarification, the application shall be deemed to have been approved.

This demining fiction has been created to maintain the timeline for GST registration in India.

 

18. How a NRI can apply for GST registration in India?

1. A non-resident taxable person shall electronically submit an application for registration, duly signed, in FORM GST REG-10, at least five days prior to commencement of the business at the Common Portal either directly or through a Facilitation Centre

2. A person applying for registration as a non-resident taxable person shall be given a temporary identification number by the Common Portal for making an advance deposit of tax.

3. The person applying for registration shall make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person during the period for which registration is sought.

4. The proof of non-resident tax payer can be used a scanned copy of the passport of the Non -resident tax payer with VISA details. In case of Company/Society/LLP/FCNR/ etc. person who is holding power of attorney with authorization letter.

 

19. What do you mean by suo moto registration under GST?

1. The suo moto registration is done by the department itself, in case they find that person was liable for registration under the GST law.

2. As per the section, where during the course of survey, inspection, search, enquiry or any other proceeding under the act, the proper officer finds that a person who is liable to be registered under this Act fails to obtain registration, then he may register the said person on a temporary basis and issue an order in FORM GST REG – 13.

3. Every person to whom a temporary registration has been granted shall within thirty days, file an application for registration through a routine procedure unless the person has filed an appeal against the grant of temporary registration.

 

 

20. Who is casual taxable person? What is the registration process for casual taxable person?

“Casual taxable person” means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business.

Here are some of the outlined point as per section 24.

1. The certificate of registration issued to a casual taxable person shall be valid for a period specified in the application for registration which shall not be more than 90 days.

2. Casual Taxable Person shall make taxable supplies only after the issuance of the certificate of registration.

3. The period of 90 days can be extended by further 90 days. The application for extension can be filed in FORM GST REG – 25 which shall be filed electronically.

4. A casual taxable person shall, at the time of submission of application for registration, shall make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

5. Further, if any extension of time is sought, then such taxable person shall deposit an additional amount of tax equivalent to be estimated tax liability of such person for the period for which extension is sought.

6. Any amount deposited    shall be credited to the electronic cash ledger of such person which can be utilized for making the payment of taxes in usual course of business.

 

21. How can I sell goods in another state under GST?

To sell goods in another state, you need to take the GST registration and you should charge IGST. IGST is the form of GST which is charged on every interstate sale.

Further, if you are selling goods or providing services inside your state then CGST and SGST shall be applicable.

 

22. When will the new GST registration will start?

The new GST registration shall start from 1st July 2017. However, it may start anytime soon as per the government twitter handle.

You can pre book the GST registration by paying a discounted price of 1,599 to our website and we shall intimate you when fresh registration are open by the government.

 

23. What is CGST, SGST or IGST? And what should I charge on my invoices?

GST is a single tax which has three board classification which is explained as follows:

CGST: CGST stands for Central GST. CGST is the central government share of revenue and is collected and retained by the Central Government. However, CGST shall be charged only in case of intrastate transaction.

SGST: SGST stands for State GST. SGST is the state government share of revenue and is collected and retained by the state governments. However, SGST shall be charged only in case of intrastate (inside the state) transactions.

IGST: IGST stands for Integrated GST. IGST is the consolidated form of tax of CGST and SGST. It is being levied and collected by the state government. IGST is charged only in case of interstate sales (outside the state).

 

24. Do I need to pay the GST on advance received?

Yes, as per GST time of supply GST is payable on any advance received.

 

25. Can we have centralized registration under GST?

No, there is no concept of centralized registration under GST. If you are having multiple branches all over India, then you need to take separate registration for each state. Further, each branch shall be treated as separate business and hence compliance shall be made independently.

 

Conclusion

If you have any query, you can email the same to info@hubco.in.

 

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