Goods & Service Tax (GST) is an indirect
tax throughout India to replace taxes levied by the central and state
Governments.
NEW
TURNOVER LIMIT FOR GST
GST will be apply when turnover of the
business exceeds Rs.20 lakhs (Limit is
Rs. 10lakhs for the North Eastern States).
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. 75 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.
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:
- The PAN associated with the registration is not valid
- The PAN is registered with a State Tax authority and
Provisional ID has been supplied by the said State Tax authority.
- 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
assessee 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.
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.
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.
GST Audit
Applicability for turnover of Rs. 2 crs and above
