GST Registration

Introduction to GST

GST is an indirect tax levied on the supply of goods and services

It is applicable to all India service providers, traders, and manufacturers as per their turnover basis. As per government latest notification, a business whose turnover exceeds Rs 40 lakhs* is required to register as a normal taxable person. This process of registration is GST registration. For a certain set of business GST is mandatory.

In 2017 parliament if India has passed the Goods and Service Tax act (GST act) and this act came into effect from 1^st July 2017. It’s an indirect tax which replaced many other prevailing indirect taxes in India.  It is all in one tax which includes a variety of state taxes like VAT, Entertainment Tax, Octroi, etc and central taxes like CST, Service tax, Excise duty, etc.

After registering under this a unique identification number given to each GST taxpayer known as GSTIN (GST identification number)

GST has three components, which includes:

• Central Goods and Service Tax (CGST)
• State Goods and Service Tax (SGST)
• Integrated Goods and Service Tax (IGST)

Tax Rates under GST

• Basic necessity items are exempted under GST like milk, salt, bread, etc.
• life-saving drugs and Household necessities etc are taxed at 5%
• Processed foods and computers are taxed at 12%
• capital goods, industrial intermediaries, Hair oil, toothpaste and soaps, and services are taxed at 18%
• Luxury items are taxed at 28%

You can check the tax rate for all products after clicking on this link https://cbec-gst.gov.in/gst-goods-services-rates.html

Documents required for GST Registration

• PAN Card of proposed proprietor / Directors/ Partners

• Aadhar Card of proposed proprietor/ director/ partners

• Photographs of all director/ proprietor/ partners

• PAN card of business entity (company/partnership/LLP)

• Certificate of incorporation or Partnership agreement (company/ LLP/ Partnership)

• Address Proof of proposed business address (any one):

1. Rent agreement
2. Electricity bill
3. Gas bill
4. Water bill

Who needs GST Registration?

*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.

• Individuals who were registered under the Pre-GST laws (viz-a-viz Excise, VAT, Service Tax, etc.)
• Businesses that have a turnover of INR. 40 Lakhs and above (INR. 10 Lakhs for North-Eastern States, Himachal Pradesh, and Uttarakhand)
• Casual taxable person / Non-Resident taxable person
• Agents of a supplier
• Input service distributor
• Businesses/Individual required to pay tax under the reverse charge mechanism
• A person who does trade via an e-commerce aggregator
• An e-commerce aggregator
• Any person, other than a registered taxable person, who supplies online information and/or database access and/or retrieval services to a person in India from a place outside India,

Process of GST registration

Step 1: Go on the GST government site and click on new registration and fill the part –A of the form and do the email and mobile verification, after this you’ll get your TRN (temporary registration number) which will be valid for next 15 days.

Step2: with obtained TRN fill the Part-B of the form where you need to

• Fill the business detail like name of the business, business state jurisdiction, central jurisdiction, the reason for obtaining registration and other business detail as perform
• Fill the bunnies owners detail like name, address, mobile number, and email id
• Fill the authorized person detail
• Fill the business address detail and attach the business address proof
• Add the additional business address detail if have in the same state
• Fill the HSN code for your goods or service which your business is providing

Step3: Submit the application after verifying from OTP received on registered mobile or email id

Step4: Within 7 days the GST authority will verify your application and raise the clarification if needed, if not then it will issue the GST registration certificate in the name of the organisation.

Step5: Raised clarification must be filed within 7 days and submit it again if the authority will satisfy from your clarification then it will issue the certificate if not then again it will ask for clarification or may reject your registration.

Types of Return under GST:

➲ GSTR-1

Through this return form, the taxpayer will report the details of all outward supplies of goods and services made or in other words sales transactions made during a tax period and also reporting debit or credit note issued.

➲ GSTR-2

Through this return, form entity will report about the inward supplies of goods and services that are purchases made during the tax period.

➲ GSTR-3B

It a monthly return form furnishing the summarized details of all outward supplies made, input tax credit claimed, tax liability ascertained and taxes paid.

➲ GST-4

This return is to be filed by taxpayers who have opted for composition scheme.

➲ GSTR-5

This return to be filed by non-resident foreign taxpayers, who are registered under GST and carry out business transactions in India.

➲ GSTR-6

This return to be filed by an Input Service Distributor (ISD)

➲ GSTR-7

This return to be filed by persons required to deduct TDS (Tax deducted at source) under GST.

➲ GSTR-9

This return to be filed by taxpayer registered under GST, this return will contain all the details of the outward supply made, inward supplies received during the relevant previous year under different tax heads. Read more

LUT Registration

A letter of undertaking is the document in which the consumer declares fulfillment of all GST requirements. It is furnished without paying IGST in case of export undertaken. Also, according to Notification No. 37/2017 – Central tax Furnishing LUT to export goods or services or both without paying IGST is mandatory. If the exporter fails to provide the LUT, then he must either pay IGST or issue an export bond. Earlier LUT can only be filed offline at the GST office concerned. But the Government has made the LUT filing online to further ease the process.

What are the eligibility criteria to apply for LUT?

a. A person intending to provide goods/services

b. Outside or To India

c. Places within Special Economic Zone

d. Without paying an integrated tax and

e. Is also included in the goods and services tax

Who needs LUT registrations?

An individual shall be eligible to apply for LUT if the conditions set out below are met.

1. The persons have never been prosecuted under the Central Goods and Services Tax Act (CGST) or the Integrated Goods and Services Act (IGST) 2017 or under any other existing legislation. Where the tax imposed is in excess of Rs. 250 lakhs.
2. The LUT shall be issued on the registered person's letterhead under the goods and services tax. For a financial year, it should be furnished as a duplicate.
3. LUT is addressed in the annex to the GST RFD-11 form and may be given by the partner, the MD, the secretary of the company, or the individual properly signed by the company or the proprietor.

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   Process for filing LUT

Step 1 login on GST portal (https://services.gst.gov.in/services/login)

Step 2 Click on service Tab and under that select the user service and the select furnish LUT

Step 3 under the “LUT applied for Financial year” select the financial year you want to file your LUT for.

Step 4 Fill the details in the form

Step 5 Fill the detail of Witnesses for generating LUT

Step 5 Sign the letter of undertaking

Step 6 Submit the LUT application and take the confirmation

Documents required for LUT filing

1. Letter of undertaking

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The validity of LUT registration

The presented LUT is valid for the entire financial year in which it is submitted. For each financial year, you are expected to send a new LUT. If the goods for export are not exported within three months of the date of issue of the invoice, then the Exporter is liable to pay GST together with interest of 18 percent within 15 days according to Section 50(1). Also in case of payment for services not received within one year for which the LUT has been submitted, the exporter is liable within 15 days to pay GST @ 18 percent. Failure to do so would result in the removal of the LUT service, which can be reinstated again on subsequent payments.