Goods and Service Tax Act (GST)

GST  REGISTRATION

Under GST regime, a business is required to get itself registered under GST if its

taxable turnover exceeds minimum exemption limit.

For certain businesses, registration under GST is mandatory.  If business is carried on without registration, it is considered as an offence and heavy penalties are imposed.

 

MULTIPLE REGISTRATIONS

A business having offices in multiple states are required to take multiple registrations in all states separately. A business with multiple vertical units in a state may apply for multiple registrations in a state. Each registration acts as separate unit with different GST registration number but under same PAN. Separate records are to be maintained for each registration.

 

POST REGISTRATION PROCESS

Once  business is registered under GST, some legal compliances are to be done:

-GST payment and returns are to be filed on monthly, quarterly and annual basis depending on turnover and status of business.

-Eway bills are to be generated while supplying inter-state goods of value more than Rs 50,000 and intrastate for value of goods more than a limit as specified by that particular state.

-Tax invoices to be raised for outward supply of goods mentioning requisite details.

 

BENEFITS OF GST REGISTRATION

-Supply of goods or services interstate without restrictions.

-Can avail benefit of taking  input tax credit while discharging tax liability on outward supply of goods or services

 

COMPOSITE SCHEME

-This is the scheme available to small business whose turnover is less than  Rupees 1.5 crore (in special category states Rupees 75 lakhs)

-Small business can fulfill legal compliances without hassle and by paying very less amount of taxes.

-No monthly returns. Composite dealer have to file  returns on quarterly basis only.

-This scheme is not applicable to service providers, e-commerce  sellers, inter-state sellers

 

EXPORT WITHOUT PAYMENT OF GST

A person registered under GST can export goods or services without paying GST just by filing LUT/ Bond with respective jurisdictional office. Input tax credit refund can also be claimed on input services or goods used while making supply of good/ services for export.