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Yes, if his aggregate turnover of supply of taxable services exceeds the threshold specified in sub-section (1) of section 22 of the CGST Act.
Yes, persons undertaking supply through e-commerce operators are required to obtain GST registration irrespective of sales turnover. Hence, any person who intends to sell through Flipkart or Amazon or Snapdeal or any other e-commerce operator, must obtain GST registration.
There is no government fee for new GST Registration. However, Individuals and entities, who are registering for GST through the online registration process, are required to pay fee for the services availed from professionals.
Yes, e-commerce operator must obtain GST registration irrespective of the value of supply made by them.
A non-resident taxable person will file electronically an application for registration using the FORM GST REG-09 along with a self-attested copy of his valid passport. In case, it is a foreign business entity (incorporated or established outside India) the application for registration shall be submitted along with its tax identification number of that country (similar to our PAN) or its PAN (if it has one).
As per section 24 of CGST Act, 2017, any person who is working as an agent or otherwise and is also making taxable supply, has to compulsorily get registered. So any kind of agent who is making taxable supplies needs to get registered under GST immediately.
As per section 2(5) of CGST Act, 2017 “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.
The composition scheme is meant for small businesses whose turnover of taxable goods does not exceed more than Rs.1.5 Crores. In composition scheme GST is to be borne by the seller, @1% of such turnover by Traders, @2% by Manufacturers, 5% for Restaurants & 6% for Service Providers.
The regular scheme to be availed is if his aggregate turnover of supply of taxable services exceeds the threshold specified in sub-section (1) of section 22 of the CGST Act. GST registration is required in such case.
As per GST Act, “services by an entity registered under Section 12AA of Income-tax Act, 1961 by way of charitable activities” are exempt from whole of the GST. If a charitable trust or NGO does not satisfy this, then GST would be applicable and the entity should register under GST.
If a Registered person wants to cancel his GST registration then he has to file an application for cancellation in form GST REG-16.
Under GST law, a supplier is required to obtain state-wise registration. Registration in GST law is PAN based, once a supplier is liable to register, he has to obtain registration in each of the states/UTs in which he operates under the same PAN.
For reactivation of cancelled GST registration number, registered person can give application for revocation of cancelled registration within 30 days from issuance of the cancellation order on the GST portal.
An application for amendment of non-core fields is required to be filed to amend mobile number and email id in GST registration.
Yes, any one document is required for registration - Rent or Lease agreement / Rent receipt with NOC (In case of no/expired agreement).
At present on GST portal while applying for GST registration, a maximum of 5 HSN/SAC can be added In case, the applicant is dealing in more than 5 goods/services, then, he is required to provide top 5 goods or services.
The Government has launched a portal i.e. https://cbec-gst.gov.in/know-your-jurisdiction.html, which helps to determine the range under which the taxpayer’s jurisdiction falls.
DIN number is mandatory in case of:-
Yes, GST registration is mandatory for HUF who carries out business of supplying goods or services in India with the aggregate value of supply exceeding 20 lakhs. HUF can take GST registration in the name of Karta.
The word “trade” ought to be understood in its ordinary sense, without any reference to “business”. For instance, “Indigo” could be a trade name while the legal name is “Inter Globe Aviation Limited”. Likewise, “Chancery Pavilion” is a trade name and “Elixir Enterprises and Hotels Private Limited” is a legal name.
Therefore, as understood, the trade name is used by trade and industry to identify their businesses symbolizing their reputation. Caution must be exercised in listing the trade name and legal name.
When the goods are sent for display at an exhibition (including entailing inter-state movement) the same would not constitute ‘supply’ under the GST regime as the same are not supplies made for a consideration.
However, for an exhibition-cum- sale event, the dealer may qualify as ‘casual taxable person’ as the dealer would undertake transactions involving the supply of goods. In such a case the dealer would be required to obtain a temporary registration in the State where the exhibition is held as well as pay an advance tax to the extent of his estimated tax liability
Yes, the dealer has to take the registration as ‘Casual taxable person’. In such case, the dealer would be required to obtain a temporary registration in the State where the exhibition/trade fair is held and have to pay an advance tax to the extent of his estimated tax liability.
According to Section 24 of the CGST Act 2017 Compulsory registration is required in following cases.
Yes. If you have proper documents, you can register your business with your home address.
Yes, input tax credit can be claimed of GST paid on purchase of mobile phone for business use.
Yes, any Capital Goods (Air Conditioner) purchased for your business on which GST is paid at applicable rate, than the amount of GST paid can be claimed as input tax credit credit in the same way as inputs.
It depends on the nature of the purchase. If it's for personal use, then input tax credit will not be allowed. If it is a commercial vehicle, then input tax credit will be allowed.
Yes, input tax credit can be claimed if the invoice is having company name and GST number and the travel is for business purpose.
Yes, if you have valid GST invoice which contains your GSTIN then you can claim input tax credit subject to section 17(5) of the CGST ACT.
There is no issue in claiming input tax credit in case of intra-state supply of hotel accommodation services. If the service providers supply the service to the interstate located recipient of service, then the recipient of service cannot take the input tax credit related to hotel accommodation/stay because the place of supply for these particular services is of the service provider and service provider charge always CGST and SGST.
Yes, if you have valid GST invoice which contains your GSTIN, then you can claim input tax credit subject to section 17(5) of the CGST ACT. As per section 17(5), ITC in respect of repairs/insurance of motor vehicle is allowed only on certain categories of motor vehicle. Other than that no ITC is allowed.
No. As per Section 17(5) of the CGST Act, input tax credit on Keyman insurance policy/LIC policy is not allowed.
As per section 17(5) ITC on following category of vehicle is allowed:
(A) further supply of such motor vehicles ( e.g. in case of a car dealer)
(B) transportation of passengers ( e.g. in case of a taxi service provider)
(C) imparting training on driving such motor vehicles ( e.g. In case of a Driving School)
Yes , the goods as 'gifts' are givens a measure of sales promotion or are given for reaching certain sales/turnover targets, then it may be said to be given 'in course of business 'and may not actually be 'gifts' but given under contractual obligations. The input tax credit may be availed on such goods given away for marketing/promotion to dealers by the supplier. However, the supplier, who avails input tax credit on such goods given as sales promotion measure, has to have a document to establish why it is not gifted, to ensure the credit on such goods is not denied at future date. However, section 17(5) clearly restricts ITC on goods given as a gift.
Yes, input tax credit of GST paid on purchase of laptop for business use can be claimed.
GST law by inserting rule 36(4) of CGST rule, 2017 thereby restricts the taxpayers to avail input tax credit only up to 110% of eligible credit appearing in GSTR-2A of a particular month.
No, the GST input tax credit of other state SGST/CGST cannot be claimed.
No, e-way bill is not valid for movement of goods without vehicle number on it.
For sending goods for exhibition, generate self delivery challan instead of invoice. E-way bill will be generated on the basis of self delivery challan.
No. Once e-way bill is generated, it cannot be edited for any mistake. However, it can be cancelled within 24hours of generation. Do note, o nly part –B can be updated.
Imports and exports have been considered as inter-state supplies under the GST Act, the e-way bill is required to be issued for these transactions as well. For imports, the e-way bill will be generated by the importer. The exporter is liable to generate the e-way bill for export supplies.
E-way bill is required to transport all the goods except for the goods exempted under the notification or rules.
Yes, when the consignment under a single invoice is transported in a knock down condition in more than one truck, the e-way bill can be generated for each of such vehicles based on the delivery challans issued for that portion of the consignment as per CGST Rule 55.
In a “bill to ship to” model of supply, there are three persons involved in the transaction,:
In the complete scenario, two supplies are involved and accordingly two tax invoices are required to be issued:
Yes. Even if the movement of goods is caused due to reasons others than supply, the e-way bill is required to be issued. Reasons other than supply include movement of goods due to job-work, a replacement under warranty, recipient not known, the supply of liquid gas where quantity is not known, supply returns, exhibition or fairs, for own use, Sale on approval basis, etc.
For sending goods for job work, generate self delivery challan instead of invoice. E-way bill will be generated on the basis of self delivery challan.
In case of export/SEZ, unit without payment of IGST or inverted duty structure, refund of unutilized ITC is available. Taxpayer has to file RFD-01 application for refund of the same.
GST refunds are processed normally within a period of 30 days from the filing of GST refund forms.
This period may be altered in some cases depending on the amount of GST refunds to be processed.
No, if a Person is supplying exempted goods/services, he cannot claim GST refund.
If the recipient of deemed exports has paid the tax amount on inward supplies received which is qualified as deemed exports and have taken credit of tax paid in their Electronic Credit Ledger, then the recipient of deemed exports can claim refund of the tax amount paid by them, which has been posted as an input tax credit in their Electronic Credit Ledger, by providing the declaration that the supplier has neither claimed nor shall claim any refund with respect to the said supplies.
The term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on inputs purchased (i.e. rate of GST paid on inputs received) is more than the rate of tax (i.e. rate of GST payable on outward supplies) on outward supplies
A registered person may claim a refund of unutilized ITC on account of Inverted Duty Structure at the end of any tax period where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies.
Yes, a registered person can file refund application in RFD-01 form under the subcategory of excess payment of tax.
First scenario: if merchant exporter procured goods at the concessional rate then Export under LUT / Bond he has to apply for ITC Refund.
Second scenario: Merchant exporter procures goods with payment of normal applicable GST and then takes ITC. While exporting he opts for payment of IGST by utilizing ITC. Once he exports the goods, the shipping bill will be treated as an application for refund of tax paid and there is no need for a separate application.
Tourists visiting India, who enters and stays for not more than six months on legitimate non-immigrant purposes, are eligible to claim a refund of IGST paid on outward supply of goods undertaken in India.
It is important to note that GST refund for tourists will not be allowed on goods that they consumed while in India i.e. in order to get the refund, the goods supplied (sold) in India must be consumed outside India. The refund applies only on the supply of goods which are subsequently taken out of India by the tourists; and hence the product remains unconsumed in India.
Any person claiming refund of any tax, interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of 2 years from the ‘Relevant Date’ in the prescribed form and manner.
No, while filing refund application of export without payment of tax or inverted duty structure, ITC of capital goods is not allowed
It is optional from 1st January, 2020 and mandatory from 1st October, 2020.
It applies to only taxpayers who are having turnover of Rs. 100 crores in the financial year.
IRN refers to Invoice Reference Number.
The invoice will be available only for 24 hours. The e‐invoice can be accessed by the authorized parties (seller/buyer/tax officer) on the GST system in their respective account/dashboard after login.
No. The invoices will continue to be generated using an acccounting or billing software (ERP software). JSON file will be created from software and that is required to be uploaded on portal.
No, invoices will need to be uploaded one at a time into the IRP. The ERP of a company needs to be designed in such a way so that it can place request for the upload of individual invoices.
An e‐Invoice cannot be partially cancelled; it has to be cancelled fully. Once cancelled, it needs to be reported into the IRN within 24 hours. A cancellation done after 24 hours cannot be done on the IRN and needs to be manually cancelled on the GST portal before the returns are filed.
E‐invoice will be digitally signed by the IRP after it has been validated. Once it is registered on the IRP/GST System, it will not be required to be signed by anyone else.
The maximum number of line items permitted per e‐invoice is 100.
E‐invoice will not replace the e‐way bill. For the transportation of goods, the e‐way bill will continue to be mandatory.
Amendments are allowed on GST portal as per the provisions of GST law till filing of GSTR‐1 of September month of subsequent FY.
E-invoice is applicable to B2B sales, export sales and sales to SEZ units. It is also applicable on tax invoices, debit notes, credit notes and RCM invoice except proforma invoices.
TDS stands for Tax Deducted at Source (TDS). As per section 51, this provision is meant for Government and Government undertakings and other notified entities making contractual payments where the total value of such supply under a contract exceeds Rs. 2.5 Lakhs . While making any payments under such contracts, the concerned authority shall deduct TDS at the rate of 2% of the total payment made (1% under each Act and 2% in case of IGST) and remit it to the appropriate GST account.
As per section 51 of the CGST Act, 2017,
1. an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty - one per cent. or more participation by way of equity or control, to carry out any function;
2. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
3. public sector undertakings are liable for Registration as Tax Deductor under GST Act.
Where the value of taxable supply of goods or services or both exceeds Rs. 2.5 lakhs, tax needs o be deducted.
No. TDS is not required to be deducted in case of exempted supply of goods or services.
TDS is required to be deducted on the amount excluding CGST/SGST/IGST/Cess components indicated in the bill.
No. The tax deducted at source is not input tax credit. However, the amount deducted shall be credited to the electronic cash ledger.
Proviso to Section 51 (1) states that NO deduction of tax shall be made if the location of the supplier and place of supply are in two different states.
TDS is not required to be made in respect of inter-state supplies where IGST is chargeable. Therefore, supplies in the course of Interstate trade, Exports, SEZ, where the goods are cleared with payment of tax, l does not attract TDS provisions.
As per Section 51(2) of the SGST/CGST Act, 2017, the amount deducted as tax shall be paid to the Government within 10 days after the end of the month in which such deduction is made.
Once GSTR 7 has been filed by the deductor, the details of tax deducted will be auto-populated in Part C of GSTR 2A of the deductee and from there the deductee, can set off this amount against his output tax liability.
Yes, there is a remedy. Any excess or erroneous amount deducted and paid to the Government account shall be dealt for refund under section 54 of the CGST Act, 2017. However, if the deducted amount is already credited to the electronic cash ledger of the supplier, the same shall not be refunded.
As per Section 2(44) of the CGST Act, 2017, electronic commerce means the supply of goods or services or both, including digital products over digital or electronic network.
As per Section 2(45) of the CGST Act, 2017, electronic Commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
As per Section 52 of the CGST Act, 2017 the e-commerce operator, not being an agent, is required to collect an amount calculated at the rate not exceeding 1 per cent., as notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount collected is called Tax Collected at Source (TCS).
Rate of TCS is 0.5% under each Act (i.e. the CGST Act, 2017 and the respective SGST Act / UTGST Act respectively) and the same is 1% under the IGST Act, 2017. Notification No. 52/2018 – Central Tax and 02/2018-Integrated Tax both dated 20th September, 2018 have been issued in this regard. Similar notifications have been issued by the respective State Governments also.
As per Section 24(ix) of the CGST Act, 2017, every person supplying goods or services through an ecommerce operator is mandatorily required to register. However, vide Notification 65/2017-Central Tax dated 15th November, 2017 a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform were exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Since such suppliers are not liable for registration, e-commerce operators are not required to collect TCS on supply of services being made by such suppliers through their portal.
As per the extant law, registration for TCS would be required in each State / UT as the obligation for collecting TCS would be there for every intra-State or inter-State supply. In order to facilitate the obtaining of registration in each State / UT, the e-commerce operator may declare the Head Office as its place of buxsiness for obtaining registration in that State / UT where it does not have a physical presence.
It may be noted that each State/UT has indicated one administrative jurisdiction where all e-commerce operators having a business (but not having physical presence) in that State/UT shall register. The proper officer for the purpose of registration of ECOs has also been notified by each State/UT.
Where registered supplier is supplying goods or services through a foreign e-commerce operator to customers in India, such foreign e-commerce operators would be liable to collect TCS on such supplies and would be required to obtain registration in each State / UT. It may be noted that each State/UT has indicated one administrative jurisdiction where all e-commerce operators having business (but not having physical presence) in that State/UT shall register. The proper officer for the purpose of registration of ECOs has also been notified by each State/UT. If the foreign e-commerce operator does not have physical presence in a particular State / UT, he may appoint an agent on his behalf.
E-Commerce operator has to obtain separate registration for TCS irrespective of the fact whether e-Commerce operator is already registered under GST as a supplier or otherwise and has GSTIN.
No. TCS is not required to be collected on exempt supplies.
The amount collected by the operator is to be paid to the appropriate government within 10 days after the end of the month in which the said amount was collected.