GST Compliance in India - GST Applicability

The Goods and Services Tax (GST) is an indirect taxes levied on Goods and Services in India. With the introduction of One Nation One tax, GST become the substitute of multiple taxes earlier taxed Trading and manufacturing of goods and services provided. It has consolidated several taxes including central excise duty, services tax, additional customs duty, surcharges and state-level value added tax. As it is an indirect taxes, The GST is paid by consumers at the time of purchase of goods and services taken, but the said tax is remitted by Business houses on a monthly basis to the government before filing of its monthly return GSTR 3B.

Some Queries Answered below

1. How do I register for GST?

Visit  GST website ( www.gst.gov.in ) , click on Register Now and select New Registration and then select as a Taxpayers ( if you are a tax payer, else select other option) and next enter the details - Registration State, District, Entity Name, PAN, Email ID and Mobile number.

Next Verify Email and Mobile number with OTP and generate Temporary Reference Number (TRN).

With TRN login again under Register Now and Select Temporary Reference Number (TRN). Fill up one by one all Pages and attach Documents. After the completion of the forms a success message and Application Reference Number (ARN) is sent to registered email and mobile. Average time taken for grant of registration 3-7 workings days.

2. Can a person operating two different companies with different names but with same PAN get two GST registrations?

One PAN holder gets one registration in every state, but he has the option of getting different registrations for different business verticals.

3. When it is compulsory to register for GST?

Following businesses/companies must register for GST:

a. Businesses with turnover above Rs 40 lakh.

b. Individuals registered under the Pre-GST law ( ex- service tax, central excise)

c. e-commerce aggregator.

4. What are the various GST slabs?
Goods and services are divided in into five different tax slabs for collection of tax -5%, 12%, 18% and 28%. Except Petroleum products, alcoholic drinks, and electricity which are taxed separately by the individual state governments, as per the previous tax system.

5. What are the Different Types of GST ?

There are two kind of transactions Intra State or an Inter-State supply. Accordingly Taxes are collected by Central Government and Distributed to respective state government.

GST three types - CGST, SGST or IGST.

How to determine CGST, SGST or IGST applicability on Goods and Services?

To determine whether Central Goods & Services Tax (CGST), State Goods & Services Tax (SGST) or Integrated Goods & Services Tax (IGST) will be applicable in a taxable transaction, first it is important to find out the transaction nature whether it is  Intra State or an Inter-State supply.     

• Intra-State supply of goods or services -  When the location of the Seller and the place of supply i.e., Purchaser’s Place are in the same state, that transaction is called Intra-State supply of goods or services. In Intra-State transactions, seller collects GST in the form of CGST and SGST from the Purchasers. The CGST is a prt of Central Govt. tax share and SGST is a Statement Govt. revenue.
• Inter-State supply of goods or services -  Whereas when the place of Seller and the place of supply are in different states. Also, covers export or import of goods or services or when the supply of goods or services is made to or by a SEZ unit, the transaction is termed as Inter-State. In an Inter-State transaction, seller collects GST in the form of IGST from Buyer and deposited with Central Govt.

GST Audit Applicability & Procedure

Types of GST Audit? 

Turnover based Audit - Applicable for all If the Turnover exceeds 2 crores. Audit has to be performed by Chartered Accountant or Cost Accountant appointed by the taxpayer.

Normal audit/General Audit - On order of Commissioner by giving 15 days prior notice. Such Audit has to be performed by Commissioner of CGST/SGST or any Officer authorized by him

Special Audit - On order of Deputy/Assistant Commissioner with prior approval of Commissioner. This Special Audit has to be performed by a Chartered Accountant or Cost Accountant, nominated by Commissioner.

Turnover-based Audit under Section 35(5) of CGST Act

If the annual turnover of a registered taxpayer is more than Rs. 2 crores in a financial year , he is required to get his accounts audited by a Chartered Accountant or Cost Accountant every year. Financial Year starts from 1^st April to end March 31^st of the next calender year.

If the annual turnover of a registered taxpayer is more than Rs. 2 crores in a financial year , he is required to get his accounts audited by a Chartered Accountant or Cost Accountant every year. Form GSTR-9C need to be filed.

A financial year covers the 12-month period beginning from April of a calendar year to March of the next calendar year.

Aggregate turnover = Value of all taxable (inter-state and intra-state) supplies + exempt supplies + export supplies of all goods and services

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