Who is required to take registration mandatorily without applying threshold limit under Goods and Services Tax (GST)?Following persons are required to take registration mandatorily irrespective of threshold turnover limit: Persons making inter-state supply, casual taxable persons, persons required to pay tax under reverse charge, e-commerce operators, non-resident taxable persons, persons required to deduct tax at source or collect tax at source, agent of a registered supplier, input service distributor, every person supplying online information and database retrieval services from a place outside India to unregistered person located in India, and any other person as notified by Government.

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Which category of persons are not required to obtain registration under GST? Any person engaged exclusively in the business of supplying goods or services, or both, which are not liable to tax or wholly exempt from tax and also, an agriculturist to the extent of supply of produce out of cultivation of land is not required to obtain registration under GST.

Is option of centralised registration available under GST? No.

 

How long will a registration remain valid for a casual taxable person and a non-resident taxable person?Registration certificate shall remain valid for a period specified in the application for registration or 90 days from the effective date of registration, whichever is earlier. However, the proper officer on any sufficient cause may extend the said period by further period not exceeding 90 days.

Can provisional ID issued be used as goods and services tax identification number (GSTIN)?Yes. Provisional ID can be used as GSTIN until the time the final GST number is issued.

Are e-commerce operators and persons supplying goods through such operators required to obtain registration under GST?E-commerce operators are required to register under GST law mandatorily. Government has decided to postpone implementation of TDS and TCS provisions and the same will be effective from the date yet to be notified. Suppliers will be required to register from the effective date of the notification. However, if the aggregate turnover of such suppliers is more than the threshold limit, then irrespective of Government's decision specified above, they will be required to register under GST law.

What are the effects of voluntary registration?Persons obtaining voluntary registration are obliged to levy and collect tax on supply of taxable goods and/or services and is responsible for depositing the same in Government treasury. Also, they can avail input tax credit (ITC).

Who can apply as a composite dealer?Any person having an aggregate turnover less than Rs 75 lakh (Rs 50 lakh for persons in north eastern states and Himachal Pradesh). They cannot make inter-state supplies and avail ITC. The dealer engaged in supply of goods (except tobacco, pan masala and ice cream) or restaurant service can opt for this scheme.

 

Is a registered person required to furnish return if there are no supplies for a particular period?Yes.

Has any relaxation been provided for filing of returns?GST Council has relaxed the return filing procedure for the first two months of GST implementation. Tax would be payable for the first two months based on a simple return in Form GSTR – 3B containing a summary of outward and inward supplies. Whereas invoice-wise details are to be submitted in regular return i.e., in Form GSTR-1.

What are the implications if the return is filed belatedly?If any return other than annual return is filed belatedly then taxpayer shall be liable to pay a late fee of Rs 100 for every day during which the failure continues subject to a maximum of Rs 5,000.

Will a person unregistered under previous regime and registered under GST be entitled to input tax credit on inputs held in stock on the appointed day?Such a person will be entitled to avail ITC of eligible duties in respect of inputs and inputs contained in semi-finished or finished goods held in stock on the appointed day. ITC can be availed subject to fulfilment of conditions.

 

Does a registered purchaser need to pay GST under reverse charge for purchases made from an unregistered seller?Registered purchaser has to discharge GST liability under reverse charge if the supplies are received from an unregistered supplier. However, Government has provided a relief whereby registered purchaser will not be required to discharge GST for consolidated daily purchases from unregistered dealers up to Rs 5,000. However, such a registered purchaser has to make appropriate disclosure in his periodical return. However, if such purchases exceed Rs 5,000 in a day, then the purchaser will be required to discharge GST under reverse charge on entire purchases made from unregistered dealer.

Compiled by EY India