What is GST?
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
In other words,Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.
What is GST Registration?
In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.
GST registration usually takes between 2-6 working days
*CBIC has notified the increase in threshold turnover from Rs 20 lakhs to Rs 40 lakhs. The notification will come into effect from 1st April 2019.
Who Should Register for GST?
Under GST law, GST registration is mandatory in certain cases irrespective of turnover limit. The situations are as follows:
Person engaged in inter-state supply of goods (not services)
Person who is required to make payment of tax under Reverse Charge
Casual Taxable person making taxable supply
Non-resident Taxable person making taxable supply
Person who make taxable supply of goods or services or both on behalf of another taxable person whether as agent or otherwise
Person who is required to deduct TDS
Electronic Commerce Operator who is required to collect TCS
Person supplying goods (not services ) through Electronic commerce operator who is required to collect TCS
Input Service Distributor
Person supplying Online Information Database Access and Retrieval Services from outside India to un-registered person in India
Required Documents for GST Registration
PAN of the Applicant
Aadhaar card
Identity and Address proof of Promoters/Director with Photographs
Address proof of the place of business
Digital Signature
Letter of Authorization/Board Resolution for Authorized Signatory
Aggregate Turnover ?
Inclusion in Aggregate Turnover
Taxable Supply including supply to distinct person having same PAN
Zero Rated Supply
Nil Rated Supply and exempted supply
Non GST Supply
Taxes other than GST
Value of outward supplies of goods and services on which the recipient is required to pay tax under reverse charge mechanism
Goods supplied to job worker on principal to principal basis
Goods received from job worker on principal to principal basis
For an agent, the supplies made by him on behalf of all his principals would be included while calculating aggregate turnover.
Exclusion in Aggregate Turnover
Value of inward supplies of goods and services on which the recipient is required to pay tax under reverse charge mechanism .However, the value of such supplies would continue to be part of the ‘aggregate turnover’ of the supplier of such services.
Amount of central tax, state tax, union territory tax and integrated tax and compensation cess
Goods supplied for job work or received back after job work under section 143 of CGST Act, 2017
For a job worker, the following supplies would not be included in his aggregate turnover
GST Number Format
GST Number assigned to registered businesses/individuals follow a specific structure. Key facts about the GST Number Format are as follows:
The GSTIN consists of 15 digits
The first 2 digits can range from 01-35 and indicate the state code for the registration as per the Indian Census of 2011
The next 10 digits are the PAN number of the GST registered entity
The 13th digit of the GST Number is the entity code. It refers to the order in which registrations was made by a legal entity that has multiple registrations within the same state. In case a single legal entity has 2 business verticals registered within the same state, the first registration will have 1 has the 13th digit while the second registration will have 2 as the 13th digit.
The 14th digit for current registrations is “Z” by default according to the current GST number format however this digit is essentially being retained for future use.
The last digit (15th) is currently used as a check code and may be a number or alphabet that has been assigned randomly.
Search GST Number On official GST portal
One of the benefits of GSTIN records being available not just to tax authorities but also the general public via the online route is the simple verification of legitimate businesses. All you need to do is search for the GST Number provided by a prospective vendor and you can verify the name, address, etc. as per the GST registration records. After introduction of GST and GST Number Search, multiple websites have started advertising the option. However, it is best to check GST registration details through the Official GST Portal. The availability of the option to search GSTIN of prospective business partners and vendors is expected to enhance trust among businesses across the country including across state borders. The Goods and Services Tax Identification Number search page on the GST website is as follows:
What is to be done after getting GST number?
Display GST Registration details in place of business
Identify the place of supply to decide whether to charge CGST & SGST or IGST
Start issuing the GST compliant invoices
Charge and collect GST on all taxable sales made
File ITC-01 to claim the input tax credit on the
stock of goods lying
Begin to avail input tax credit on purchases
Maintain proper accounts & records as per GST law
File GST Returns: GSTR-1 and GSTR-3B or GSTR-4
Know that you may be subject to reverse charge
GST Registration Amendment
In this article, we will discuss what a business owner needs to do if he/she has to change or update the GST registration details. There may be a need to modify registration details later on due to mistakes made while applying for GST registration or due to any changes during the course of the business over a period of time. It is also called the amendment of GST registration details as per the GST law in form REG-14.
Amendment in Core and Non-core fields in GST Registration details?
The fields of a GST registration application are classified as core and non-core fields. Through this, the taxpayer can identify and know whether or not a particular field being amended requires the jurisdictional tax official’s approval for amendment, if it happens to be a core field. Whereas, amendment of non-core fields are automatically approved once the amendment application is filed. However, in the case of core fields, if the tax officer does not approve within a stipulated time period, then it is considered automatically approved.
Change in Core fields
Business name, (Legal Name) if there is no change in PAN
Principal and additional places of business (other than any change in the State)
Addition or deletion of stakeholders such as promoters or partners or Karta or Managing Committee or CEO
Change in Non-core Field
Addition or deletion or modification of bank details
Business details
Description of goods and services
Editing state-specific information (Not being any change of State)
Authorised signatories or representatives
Modifying details of existing stakeholders such as promoters or partners or Karta
Minor modifications in existing principal and additional places of business
The rest of the fields other than the core fields, mentioned above, will be called the non-core fields under GST. These include:
Fields that cannot be amended
Change in PAN.
Change in Constitution of Business resulting in change of PAN.
Change in Place of Business from one State to other
Who can file the Application for Amendment of Registration?
Any taxpayer of following category, registered under GST, can file Application for Amendment of Registration:
New Registrants & Normal Taxpayers
TDS/ TCS Registrants, UN Bodies, Embassies & Other Notified person having UIN
Non Resident Taxable Person
GST Practitioner
Online Information and Database Access or Retrieval Service Provider
Timeline For GST Amendment
n case of requirement of any modification in the GST registration, a taxpayer needs to submit the application with required documents for amendments on GST portal within 15 days. After GST REG 14 amendment form approval, the changes will be corrected in form GST REG 06.
The application for amendments of registration can be saved for 15 days. However, if an applicant fails to submit the application for any reason, the application for amendments will be removed automatically.
What is GST Return?
All registered businesses have to file monthly or quarterly and an annual GST return based on the type of business. All these GSTR filings are done online on the GST portal.
A GST return is a document containing details of all income/sales and/or expense/purchase which a taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is used by tax authorities to calculate net tax liability.
Returns Prescribed under GST Law
In the GST regime, any regular business having more than Rs.5 crore as annual aggregate turnover has to file two monthly returns and one annual return. This amounts to 26 returns in a year.
The number of GSTR filings vary for quarterly GSTR-1 filers under QRMP scheme. The number of GSTR filings online for them is 9 in a year, including the GSTR-3B and annual return.
There are separate returns required to be filed by special cases such as composition dealers whose number of GSTR filings is 5 in a year.
Different types of GST Returns
Here is a list of all the returns to be filed as prescribed under the GST Law along with the due dates.
GST filings as per the CGST Act subject to changes by CBIC Notifications
| Return Form | Description | Frequency | Due Date |
|---|---|---|---|
|
Details of outward supplies of taxable goods and/or services affected. | Monthly | 11th* of the next month with effect from October 2018 until September 2020. *Previously, the due date was 10th of the next month. |
|
|
Quarterly (If opted under the QRMP scheme) | 13th of the month succeeding the quarter. Was end of the month succeeding the quarter until December 2020) | |
|
Details of inward supplies of taxable goods and/or services effected claiming the input tax credit. | Monthly | 15th of the next month. |
|
Monthly return on the basis of finalisation of details of outward supplies and inward supplies along with the payment of tax. | Monthly | 20th of the next month. |
|
Simple return in which summary of outward supplies along with input tax credit is declared and payment of tax is affected by the taxpayer. | Monthly | 20th of the next month from the month of January 2021 onwards^ Staggered^^ from the month of January 2020 onwards upto December 2020.* *Previously 20th of the next month for all taxpayers. |
|
|
Quarterly | 22nd or 24th of the month next to the quarter*** | |
|
|
^20th of next month for taxpayers with an aggregate turnover in the previous financial year more than Rs 5 crore or otherwise eligible but still opting out of the QRMP scheme. | ||
|
|
^^ 1. 20th of next month for taxpayers with an aggregate turnover in the previous financial year more than Rs 5 crore. | ||
|
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2. For the taxpayers with aggregate turnover equal to or below Rs 5 crore, 22nd of next month for taxpayers in category X states/UTs and 24th of next month for taxpayers in category Y states/UTs | ||
|
|
***For the taxpayers with aggregate turnover equal to or below Rs 5 crore, eligible and remain opted into the QRMP scheme, 22nd of month next to the quarter for taxpayers in category X states/UTs and 24th of month next to the | ||
|
Statement-cum-challan to make a tax payment by a taxpayer registered under the composition scheme under section 10 of the CGST Act (supplier of goods) and CGST (Rate) notification no. 02/2019 dated 7th March 2020 (Supplier of services) | Quarterly | 18th of the month succeeding the quarter. |
|
Return for a taxpayer registered under the composition scheme under section 10 of the CGST Act (supplier of goods) and CGST (Rate) notification no. 02/2019 dated 7th March 2020 (Supplier of services). | Annually | 30th of the month succeeding a financial year. |
|
Return for a non-resident foreign taxable person. | Monthly | 320th of the next month. |
|
Return for an input service distributor to distribute the eligible input tax credit to its branches. | Monthly | 13th of the next month. |
|
Return for government authorities deducting tax at source (TDS). | Monthly | 10th of the next month. |
|
Details of supplies effected through e-commerce operators and the amount of tax collected at source by them. | Monthly | 13th of the next month. |
|
Annual return for a normal taxpayer | Monthly | 31st December of next financial year. |
|
Annual return optional for filing by a taxpayer registered under the composition levy anytime during the year. | Annually until FY 2017-18 and FY 2018-19 | 31st December of next financial year, only up to FY 2018-19. |
|
Certified reconciliation statement | Annually | 31st December of next financial year |
|
Final return to be filed by a taxpayer whose GST registration is cancelled.t | Once, when GST registration is cancelled or surrendered. | Within three months of the date of cancellation or date of cancellation order, whichever is later. |
|
Details of inward supplies to be furnished by a person having UIN and claiming a refund | Monthly. | 28th of the month following the month for which statement is filed. |
What is GSTR-1?
GSTR-1 is the return to be furnished for reporting details of all outward supplies of goods and services made. In other words, it contains the invoices and debit-credit notes raised on the sales transactions for a tax period. GSTR-1 is to be filed by all normal taxpayers who are registered under GST, including casual taxable persons.
Any amendments to sales invoices made, even pertaining to previous tax periods, should be reported in the GSTR-1 return by all the suppliers or sellers.
The filing frequency of GSTR-1 is currently as follows:
- Monthly, by 11th of every month- If the business either has an annual aggregate turnover of more than Rs.5 crore or has not opted into the QRMP scheme.
- Quarterly, by 13th of the month following every quarter- If the business has opted into the QRMP scheme.
What is GSTR-2A?
GSTR-2A is a view-only dynamic GST return relevant for the recipient or buyer of goods and services. It contains the details of all inward supplies of goods and services i.e., purchases made from GST registered suppliers during a tax period.
The data is auto-populated based on data filed by the corresponding suppliers in their GSTR-1 returns. Further, data filed in the Invoice Furnishing Facility (IFF) by the QRMP taxpayer, also get auto-filled.
What is GSTR-2B?
GSTR-2B is again a view-only static GST return important for the recipient or buyer of goods and services. It is available every month, starting in August 2020 and contains constant ITC data for a period whenever checked back.
ITC details will be covered from the date of filing GSTR-1 for the preceding month (M-1) up to the date of filing GSTR-1 for the current month (M). The return is made available on the 12th of every month, giving sufficient time before filing GSTR-3B, where the ITC is declared.
What is GSTR-3B?
GSTR-3B is a simple summary return that all normal taxpayers must file every month. It contains summary details of sales (domestic as well as export), Input Tax credit on purchases, liability under Reverse charge mechanism and other specified particulars.
IMPORTANT:
You have to file GSTR-3B even when there has been no business activity (nil return).
You cannot revise/amend GSTR3B.
You have to file a separate GSTR 3B for every GSTIN you have.
From September 2021 to March 2022
Aggregate turnover exceeding Rs.5 crore in the previous financial year
| Month | Due Date |
|---|---|
| September 2021 | 20th October 2021* |
| October 2021 | 20th November 2021* |
| November 2021 | 20th December 2021* |
| December 2021 | 20th January 2022* |
| January 2022 | 20th February 2022** |
| February 2022 | 20th October 2021* |
| March 2022 | 20th April 2022* |
*The due dates from June 2021 tax periods for GSTR-1 and GSTR-3B are yet to be notified by the CBIC, as on 12th October 2021.
Aggregate turnover up to Rs.5 crore in the previous financial year
1) Not opting for the QRMP scheme
| Month | Due Date |
|---|---|
| September 2021 | 20th October 2021* |
| October 2021 | 20th November 2021* |
| November 2021 | 20th December 2021* |
| December 2021 | 20th January 2022* |
| January 2022 | 20th February 2022** |
| February 2022 | 20th October 2021* |
| March 2022 | 20th April 2022* |
*The due dates from June 2021 tax periods for GSTR-1 and GSTR-3B are yet to be notified by the CBIC, as on 12th October 2021.
2) Opting for the QRMP scheme
| Quarter | Due Date |
|---|---|
| Jul-Sept 2021* |
|
| Oct-Dec 2021* |
|
| Jan-Mar 2022* |
|
*The due dates from April-June 2021 tax periods for GSTR-1 and GSTR-3B are yet to be notified by the CBIC, as on 12th Oct 2021.
