Tuesday, July 11, 2017

How to Apply for a New GST Registration Edit article Published on July 1, 2017

If you are a regular dealer or a composite tax payer, you need to do the following for GST registration:

1.    Fill Part-A of Form GST REG-01. Provide your PAN, mobile number, and E-mail ID, and submit the form.
2.    The PAN is verified on the GST Portal. Mobile number, and E-mail ID are verified with a one-time password (OTP).
3.    You will receive an application reference number on your mobile and via E-mail.
4.    Fill Part- B of Form GST REG-01 and specify the application reference number you received. Attach other required documents and submit the form. Following is the list of documents to be uploaded –
5.    Photographs: Photographs of proprietor, partners, managing trustee, committee etc. and authorized signatory
6.    Constitution of taxpayer : Partnership deed, registration certificate or other proof of constitution
7.    Proof of principal / additional place of business :
8.    For own premises – Any document in support of the ownership of the premises like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
9.    For rented or leased premises – copy of rent / lease agreement along with owner’s (landlord) documents like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
10.                       Bank account related proof : Scanned copy of the first page of bank pass book or bank statement
11.                       Authorization forms: For each authorized signatory, upload authorization copy or a copy of resolution of managing committee or board of directors in the prescribed format.
12.                       If additional information is required, Form GST REG-03 will be issued to you. You need to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
13.                       If you have provided all required information via Form GST REG-01 or Form GST REG-04, a certificate of registration in Form GST REG-06 will be issued within 3 days from date of receipt of Form GST REG-01 or Form GST REG-04.
14.                       If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05

Casual Registration

A person who occasionally supplies goods and/or services in a territory where GST is applicable but he does not have a fixed place of business. Such a person will be treated as a casual taxable person as per GST.
Example: A person who has a place of business in Bangalore supplies taxable consulting services in Pune where he has no place of business would be treated as a casual taxable person in Pune.

Composition Dealer

This is an option available to small businesses and taxpayers having a turnover less than Rs. 50 lakhs. They can opt for Composition scheme where they will tax at a nominal rate of 1% or 2.50% (for manufacturers) CGST and SGST each (rates will be notified later).
They will be required to maintain much less detailed records and file only 1 quarterly return instead of three monthly returns. However, they cannot issue taxable invoices, i.e., collect tax from customers, but are required to pay the tax out of their own pocket. They cannot also claim any input tax credit.
Composition levy is available to only small businesses. It is not available to interstate sellers, e-commerce traders, and operators.

Applicability

GST will apply when turnover of the business exceeds Rs 20 lakhs (Limit is Rs 10 lakhs for the North Eastern States). [Earlier the limit was Rs 10lakhs and Rs 5lakhs for NE states.]

Migration to GST

All existing Central Excise and Service Tax assessees and VAT dealers will be migrated to GST. To migrate to GST, assessees would be provided a Provisional ID and Password by CBEC/State Commercial Tax Departments.
Provisional IDs would be issued to only those assessees who have a valid PAN associated with their registration. An assessee may not be provided a Provisional ID in the following cases:
1.    The PAN associated with the registration is not valid
2.    The PAN is registered with a State Tax authority and Provisional ID has been supplied by the said State Tax authority.
3.    There are multiple CE/ST registrations on the same PAN in a State. In this case, only 1 Provisional ID would be issued for the 1st registration in the alphabetical order provided any of the above 2 conditions are not met.
The assessees need to use this Provisional ID and Password to login to the GST Common Portal (https://www.gst.gov.in) where they would be required to fill and submit the Form 20 along with necessary supporting documents.

Penalties for Not Registering Under GST

An offender not paying tax or making short payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will be high at 100% of the tax amount when the offender has evaded i.e., where there is a deliberate fraud.
However, for other genuine errors, the penalty is 10% of the tax due.

Multiple Registrations Under GST

A person with multiple business verticals in a state may obtain a separate registration for each business vertical.
PAN is mandatory to apply for GST registration (except for a non-resident person who can get GST registration on the basis of other documents).
A registration which has been rejected under CGST Act/SGST Act shall also stand rejected for the purpose of SGST/CGST act.
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