What is GST?
GST stands for Goods and Services Tax. GST is a destination based indirect tax, which was introduced from 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 case of Intra-state supplies, CGST and SGST are levied. In 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:
| states | If exclusively engaged in supply of Goods | If engaged in supply of Services, or goods or services or both |
|---|---|---|
| ManipurMizoramNagalandTripura | 10 Lakhs | 10 Lakhs |
| Arunachal PradeshMeghalayaPuducherrySikkimTelanganaUttarakhand | 20 Lakhs | 20 Lakhs |
| All other states | 40 Lakhs | 20 Lakhs |
What is Aggregate Turnover?
- Aggregate turnover comprises of following :
- Taxable Supplies
- Exempt Supplies
- Export of goods or services or both
- Inter-state supplies to persons having 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 turnover limit. The situations are as follows:
- Person engaged in inter-state supply of goods (not services)
- Person who is required to make payment of tax under Reverse Charge
- Casual Taxable person making taxable supply
- Non-resident Taxable person making taxable supply
- Person who make taxable supply of goods or services or both on behalf of another taxable person whether as agent or otherwise
- Person who is required to deduct TDS
- Electronic Commerce Operator who is required to collect TCS
- Person supplying goods (not services ) through Electronic commerce operator who is required to collect TCS
- Input Service Distributor
- Person supplying Online Information Database Access and Retrieval Services from outside India to un-registered person in India
No liability of registration even threshold limit of turnover is crossed
- Person who is only engaged in making supplies of goods or services or both tax 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 process?
- A person should apply for GST number within 30 days of becoming liable for registration. If a person applies for GST number within 30 days of becoming liable, he will be granted GST number effective from date of becoming liable to registration.
- The process of applying GST number is completely online. A person may apply for GST number on www.gst.gov.in by filling all the necessary details and uploading required documents. It takes usually 7 working days to get GST number approved by 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 a 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 tax payer, which will be state wise and PAN based. Here is the breakdown of the 15-digit GSTIN format:
- The first two digits represents the state code as per Indian Census 2011. Every state or Union territory has a unique code. For example, 27 stands for Maharashtra and 09 is
- The next ten digits are the PAN number of the taxpayer or business house
- The 13th digit indicates the number of registrations in a state for the same PAN. It will be an alpha-numeric digit (first 1-9 and then A-Z)
- The 14th digit will be alphabet ‘Z’ by default
- The last digit will be a check code to detect errors. It can be an alphabet or a number
| State code list under GST | states | State code list under GST | states |
|---|---|---|---|
| 01 | Jammu & Kashmir | 19 | West Bengal |
| 02 | Himachal Pradesh | 20 | Jharkhand |
| 03 | Punjab | 21 | Orissa |
| 04 | Chandigarh | 22 | Chhattisgarh |
| 05 | Uttarakhand | 23 | Madhya Pradesh |
| 06 | Haryana | 24 | Gujarat |
| 07 | Delhi | 25 | Daman & Diu |
| 08 | Rajasthan | 26 | Dadra & Nagar Haveli |
| 09 | Uttar Pradesh | 27 | Maharashtra |
| 10 | Bihar | 28 | Andhra Pradesh (Old) |
| 11 | Sikkim | 29 | Karnataka |
| 12 | Arunachal Pradesh | 30 | Goa |
| 13 | Nagaland | 31 | Lakshadweep |
| 14 | Manipur | 32 | Kerala |
| 15 | Mizoram | 33 | Tamil Nadu |
| 16 | Tripura | 34 | Puducherry |
| 17 | Meghalaya | 35 | Andaman & Nicobar Islands |
| 18 | Assam | 36 | Telengana |
| 37 | Andhra Pradesh (New) |
- For Non-resident Foreign Taxpayers or Non-resident online service provider, the state code is followed by 2 digit year, 3 digit country code and 5 digit serial number per year and another 3 alpha numeric 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 two digit year, 3 digit country code and 5 digit serial number and another 3 digit of alpha numeric character. Sample UIN for Embassies, UN
What is to be done after getting GST number?
- After getting GST number, a person has to file returns as applicable to him in 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
Amendment of Registration Details
Under GST regime, registration is compulsory to get GST Identification Number (GSTIN). While filing details and uploading documents for GST registration, there are chances that somebody has entered wrong details or missed out some important details. Further, the details which were originally uploaded might get changed like Address, Key persons of enterprise, Mobile number or E-mail may get changed over the period of time. To amend these details on GST Portal, a form REG-14 has been prescribed which can be submitted online with all necessary details and documents. The amendments for GST registration are categorized into three, which describes the level of approval and time period to amend the fields. While applying for amendment in particular fields of a registration form, it is mandatory to mention the “Reasons” for amendment in GST registration process.
Three types of amendments which can be done
Change in Core Field
- Core fields are those fields which require approval from Jurisdictional officer. The changes in Core field includes the legal name of the business, addition/ deletion of stakeholder, the address of the principal place of business, and any additional place of business. It takes 15 days to get approval from a proper office to amend the Core Fields.
Change in Non-core Field
- There are some fields which don’t require any approval from a proper office and amendments in Non-core fields can be easily done online. All the fields except those, which are covered under core fields come under a Non-core field.
Change in Email or Mobile Number
- The change in email or mobile number requires a verification by OTP (One-Time Password) after online verification on common GST portal.
Fields which cannot be amended
- Modification in Principal place of business from one state to another state. Since GST number is state specific, the shifting of principal place of business from one state to another state shall require separate registration in another state.
- Change in PAN is not allowed. GST number is based on PAN of taxpayer. If PAN of taxpayer is changed, then he shall make a new application for GST number.
- Change in Constitution of business e.g. from Proprietorship to Partnership is not allowed since it required change of PAN.
Who can file application for amendment of registration?
- Any taxpayer of following category, registered under GST, can file Application for Amendment of Registration:
- New Registrants & Normal Taxpayers
- TDS/ TCS Registrants, UN Bodies, Embassies & Other Notified person having UIN
- Non Resident Taxable Person
- GST Practitioner
- Online Information and Database Access or Retrieval Service Provider
Time Limit for GST Amendment
- Any change to information updated in the GST common portal must be intimated by the taxpayer within 15 days of occurrence of event leading to the change of information by filing a GST amendment application.
- On receiving a GST amendment application, the concerned officer is required to approve the application after due verification within 15 working days from the date of receipt of application. On approval, the amendment shall take effect from the date of occurrence of the event warranting amendment.
- If the application for GST amendment is either not warranted or the documents furnished therewith are incomplete or incorrect, then the concerned officer can serve a notice requiring the taxpayer to submit additional information or clarification within 15 days. On receiving the notice, the taxpayer is required to submit clarification or additional information within 7 days. If the information submitted by the taxpayer is acceptable, the officer can approve the application for GST amendment. If the information is not acceptable, then the GST officer can reject the application for amendment.
- If the application for GST amendment is either not warranted or the documents furnished therewith are incomplete or incorrect, then the concerned officer can serve a notice requiring the taxpayer to submit additional information or clarification within 15 days. On receiving the notice, the taxpayer is required to submit clarification or additional information within 7 days. If the information submitted by the taxpayer is acceptable, the officer can approve the application for GST amendment. If the information is not acceptable, then the GST officer can reject the application for amendment.
- However, if a GST officer fails to take action within 15 working days of submission of amendment application or within 7 working days of receipt of clarification or additional information in response to a notice, then the certificate of registration shall stand amended to the extent applied for and the amended certificate would be made available to the registered person on the Common Portal.
