What is GST?
GST stands for Goods and Services Tax. GST is a destination-based indirect tax, which was introduced on 1st July 2017. GST subsumed many earlier indirect taxes such as Excise Duty, VAT, CST, Additional Duties of Excise, and Service Tax, etc. There are three taxes under GST namely CGST, SGST or UTGST, and IGST. In the case of Intra-state supplies, CGST and SGST are levied. In the case of inter-state supplies, IGST is levied.
What is GST Registration?
Any business whose annual turnover is more than the prescribed limit shall make an online application for a GST Number on gst portal. The application is accompanied with all the necessary details and documents. The application is examined by the department and if all the details and documents are found satisfactory, his application is approved and he is allotted GST Identification Number, which is a 15 digit alpha-numeric, PAN-Based and State Specific unique number. This process usually takes 3 working days.
When GST Registration is Mandatory?
The GST registration is mandatory if the “aggregate turnover” during a financial year exceeds the following prescribed limits:
||If exclusively engaged in the supply of Goods
||If engaged in the supply of Services, or goods or services or both
|1. Arunachal Pradesh
|All Other States
What is Aggregate Turnover?
- Aggregate turnover comprises of following :
a. Taxable Supplies
b. Exempt Supplies
c. Export of goods or services or both
d. Inter-state supplies to persons having the same PAN
- But it excludes CGST, SGST, IGST charged on supplies and inward supplies on which tax is payable under reverse charge. However outward supplies by a person on which tax is payable by the recipient under RCM are part of aggregate turnover.
- Further, this aggregate turnover is be calculated on PAN India Basis. If a person is having one branch in Rajasthan and another branch in Kerala, then turnover of both the branches are to be clubbed for calculating aggregate turnover.
Compulsory Registration in certain cases
Under GST law, GST registration is mandatory in certain cases irrespective of the turnover limit. The situations are as follows:
1. A person engaged in inter-state supply of goods (not services)
2. A person who is required to make payment of tax under Reverse Charge
3. Casual Taxable person making taxable supply
4. Non-resident Taxable person making taxable supply
5. A person who makes a taxable supply of goods or services or both on behalf of another taxable person whether as an agent or otherwise
6. A person who is required to deduct TDS
7. Electronic Commerce Operator who is required to collect TCS
8. Person supplying goods (not services ) through Electronic commerce operator who is required to collect TCS
9. Input Service Distributor
10. Person supplying Online Information Database Access and Retrieval Services from outside India to an unregistered person in India
No liability of registration even threshold limit of turnover is crossed
- A person who is only engaged in making supplies of goods or services or both taxes on which is to be paid by the recipient under reverse charge has been exempted from taking GST registration even if turnover crosses the threshold limit.
- Ex: A person who is exclusively engaged in providing transportation services, tax on which is to be paid by Recipient, then he shall not be liable to get registered under GST.
When should a person apply for GST registration and what is the process?
- A person should apply for a GST number within 30 days of becoming liable for registration. If a person applies for a GST number within 30 days of becoming liable, he will be granted a GST number effective from the date of becoming liable to registration.
- The process of applying GST number is completely online. A person may apply for a GST number on www.gst.gov.in by filling in all the necessary details and uploading the required documents. It takes usually 3 working days to get the GST number approved by the department.
What is GST Identification Number (GSTIN)
Every person who is registered under GST is allotted a 15-digit Goods and Services Tax Identification Number (GSTIN) or GST Number which is unique to every registered person. GSTIN is utilized by tax authorities to maintain records of GST dues and payments of those who are registered under the GST Act.
GST Number Format
A unique code known as GSTIN is assigned to each taxpayer, which will be state-wise and PAN-based. Here is the breakdown of the 15-digit GSTIN format:
1. The first two digits represent the state code as per the Indian Census 2011. Every state or Union territory has a unique code. For example, 27 stands for Maharashtra, and 09 is for Uttar Pradesh.
2. The first two digits represent the state code as per the Indian Census 2011. Every state or Union territory has a unique code. For example, 27 stands for Maharashtra, and 09 is
3. The next ten digits are the PAN number of the taxpayer or business house
4. The 13th digit indicates the number of registrations in a state for the same PAN. It will be an alphanumeric digit (first 1-9 and then A-Z)
5. The 14th digit will be alphabet ‘Z’ by default
6. The last digit will be a check code to detect errors. It can be an alphabet or a number
|State Code List Under GST
||State Code List Under GST
||Jammu & Kashmir
||Daman & Diu
||Dadra & Nagar Haveli
||Andhra Pradesh (Old)
||Andaman & Nicobar Islands
||Andhra Pradesh (New)
- For Non-resident Foreign Taxpayers or Non-resident online service providers, the state code is followed by 2 digit year, 3 digit country code and 5 digits serial number per year, and another 3 alphanumeric digits. Sample GSTIN for Non-resident Foreign Taxpayers and Non-resident online service provider
- For UN Bodies, Embassies, etc., and other notified persons, the term used is UIN. For the UIN, The state code is followed by a two-digit year, 3 digit country code and 5 digits serial number, and another 3 digits of alphanumeric character. Sample UIN for Embassies, UN
What is to be done after getting the GST number?
After getting a GST number, a person has to file returns as applicable to him in a timely manner. The various returns prescribed under GST are GSTR-1, GSTR-3B, CMP-08, GSTR-9, GSTR-9C, GSTR-5, GSTR-6, etc. For more details on GST return filing. Click here
Frequently Asked Questions