1. What is GST Registration?
GST refers to Goods and Services Tax which subsumes all taxes such as Sales tax, Service tax, Excise duty etc. into GST. GST registration is required primarily if your annual sales are more than Rs. 20 Lakh. Even if your sales are less than Rs. 20 Lakh, we suggest that you voluntarily opt for GST registration because:
· You will not get any tax refunds on purchases (e.g. if you buy goods worth Rs 1 lakh in a year, and tax rate is 18% – you will lose tax Input of Rs. 18,000).
· You cannot sell outside your state.
3. Can a person get Voluntary registered under GST even he is not liable ?
Yes, a person can get registered voluntarily under GST in terms of sub-section (3) of section 25. All the provisions will apply to him as they apply to a registered person.
5. Is amendment in GST Registration Certificate Possible?
A taxable person can on his own, at the common portal, make amendments in some information without prior approval like e-mail IDs, mobile numbers etc. But in the case of following changes he will have to apply for amendment within 15 days:
· Legal name of the business.
· State of place of business or additional place of business.
7. Am I eligible for registration under Composition Scheme?
Only those persons who fulfill all the following are eligible to apply for composition scheme.
· Deals only in intra-state supply of goods (or service of only restaurant sector).
· Does not supply goods that are not leviable to tax.
· Has an annual turnover below 75 lakhs in preceding financial year.
· Shall pay tax at normal rates in case he is liable under reverse charge mechanism.
· Not supplying through e-commerce operator.
· Not a manufacturer of – ice cream, pan masala or tobacco (and its substitutes)
2. How is exempted for GST Registration?
· Supply agricultural produce from cultivation.
· Make only exempt supplies (Nil Rated or Non-Taxable supplies) of goods or services.
· Make supplies which are entirely covered under reverse charge.
4. Is cancellation of GST registration Certificate Possible?
Registration can be cancelled in 2 scenarios:
· When the taxable person wishes to voluntarily cancel his GST registration.
· When the proper officer, on default by the taxable person, moves to cancel the GST registration on his own motion. This may be when the person is not doing business from his declared registered place of business or if he issues tax invoice without making the supply of goods or services.
6. What is Composition Scheme ?
Composition scheme is introduced for small tax payers to reduce the compliance burden on them.
· File summarized returns on a quarterly basis instead of multiple monthly returns.
· Pay tax only to a maximum of 2% for manufacturers, 5% for restaurant service sector and 1% for other suppliers.
· Cannot collect any tax from or issue tax invoice to customers.
· Cannot avail input tax credit.
8. Am I Eligible For Registration Under Composition Scheme?
You need to file an online application to opt for Composition Scheme. Taxpayers who can opt for this scheme can be categorized as below:
· Migrated Taxpayers: Any taxpayer who has migrated from earlier laws and has been granted provisional registration certificate can file an application under Form GST CMP-01 and further details in Form GST CMP-03 within 30 days after 1st July 2017.
· New Taxpayers: Any person who is liable to register under GST Act after 1st July 2017 can file Form GST REG-01 and choose his option to pay composition amount in the New Registration application.
· Existing Taxpayers: Any taxpayer who is registered as normal tax payer under GST regime shall file an application under Form CMP-02 to opt for Composition Scheme at least 7 days prior to the commencement of financial year for which the option to pay tax under composition is exercised.