REGIME GST

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REGISTRATION UNDER GST

The most important thing to understand in latest tax reform is the Registration Structure. There is no hard and fast rule but need a simple understanding over it. The Act provides the following types of Registration:

  1. Mandatory Registration 
  2. Voluntary Registration 
  3. Registration by Department
  • Mandatory Registration: As per the provision of section 22 of CGST Act:

Every supplier shall be liable to registered under this Act in the State or Union Territory, other than Special Category States*, from where he makes a taxable supply of goods or services or both, if his aggregate turnover* in a financial year exceeds  20 Lacs.

In Special Category States*, person is liable to be registered if the aggregate turnover of taxable supply of goods or services or both  in the financial year exceeds  10 Lacs.


*Special Category StatesManipur, Arunachal Pradesh, Nagaland, Meghalaya, Assam, Tripura, Mizoram, Sikkim, Jammu & Kashmir, Himachal Pradesh & Uttarakhand


*Aggregate Turnover: The aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

Paper-7: GST LECTURES FOR CS PROFESSIONAL BY CA ARPIT GUPTA

  • Section 24 defines the list of persons who are required to be registered under the GST Law irrespective of threshold limit:

a) persons making any inter-state taxable supply;

b) casual taxable persons* making taxable supply;


*Casual Taxable Persons: A person who occasionally undertakes transactions involve supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity where he has no fixed place of business.


Example: A person may have a fixed establishment in Ludhiana (Punjab) where his total turnover is of   12.5 Lacs, therefore he does not required to obtain registration. But he goes to Kanpur (U.P.) and sells certain products of   1.35 Lacs, such person will be considered as a casual taxable person even if his aggregate turnover is of   13.85 Lacs, he shall required to obtain registration.

c) persons who are required to pay tax under reverse charge*;


*Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed.


d) persons who are required to pay tax under section 9(5);

e) non-resident taxable persons making taxable supply;

f) persons who are required to deduct tax under section 51, whether or not separately registered under this Act.

g) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

h) Input Service Distributor*, whether or not separately registered under this Act;


*Input Service DistributorsInput Service Distributor means a supplier of goods or services which receives tax invoices for the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services.

i) persons who supply good or services or both, other than supplies specified under section 9(5), through such electronic commerce operator who is required to collect ta at source u/s 52;

j) every electronic commerce operator;

k) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

l) such other person or class of personsas may be notified by the Govt. on the recommendations of the Council. 

***As per 22nd GST Council meeting of 6th October 2017

Service providers providing inter-state services are exempted from registration if their annual turnover is below 20lakhs (10 lakhs for Special states. 20 lakhs for J&K)***

***Notification No. 7/2017 – Integrated Tax dated 14th September 2017

Job workers making inter-state supply of services to a registered person are exempted from registration if their turnover is below 20lakhs (10 lakhs for Special states)***

 

  • Voluntary Registration: As per the provision of section 22 of CGST Act:

A person who is not liable to be registered under the Act, he may get himself registered voluntarily. All the provisions of the Act as are applicable to the registered taxable person shall apply to the person who voluntarily registered himself under the Act.

Example: The aggregate turnover of a person located in Jaipur is  16 Lacs in the financial year he is not liable to obtain registration. However, such a person can obtain registration voluntarily.

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