Businesses must first assess whether it’s eligible to register under the most recent indirect tax regime before beginning the online GST registration process. Any individual or group engaged in commercialized business must comply with the New GST Registration and Eligibility Criteria because it enables the proprietary to discharge taxes and take advantage of input tax credit. Certain businesses must get online GST registration done. It will face severe penalties if it conducts business operations without being registered. The GST Council states that a business entity must meet a number of GST filing requirements in order to be eligible for online GST registration.

So, in this blog, we have explained what the GST eligibility criteria is and how Finaccle can help you further to file GST in an economical and convenient way.

What is meant by GST registration?

The Goods & Services Tax (GST) is an indirect tax that is paid when purchasing goods or services for consumption. It’s also a value-added tax levied on services. Additionally, companies that deliver services and sell goods must contribute fairly to the GST. GST eliminates the cascading effect of indirect taxes. In addition, it combines a number of separate central and state indirect taxes to provide more revenue for the government. Similar to that, online GST registration went into effect in April 2017 and demanded registration from all eligible enterprises.

What is the eligibility criteria under GST filing?

• Individuals registered under legislation like excise, VAT, service tax, etc. that were in place prior to the implementation of the GST
• A non-resident Indian taxpayer or a casual taxpayer
• Supplier’s agents, distributors of Input Services, and aggregators or E-commerce operators
• People who pay taxes through the GST registration reverse charge mechanism
• A business with a turnover that exceeds the 20 lakh rupee threshold. For states like Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and the North Eastern Indian states, the limit is 10 lakh rupees
• Any business engaged in the supply of goods whose annual turnover exceeds Rs. 20 lakhs for states in the Special category and Rs. 40 lakhs for states in the Normal category
• Any business providing services whose annual turnover surpasses Rs. 10 lakhs for states in the Special category and Rs. 20 lakhs for states in the Normal category
• If a registered business is transferred to another party or dissolves, the transferee must take online GST registration since the date of the transfer
• A person who provides online information and database access or retrieval services from a location outside India to a person in India who is not a registered taxable person
• A person making interstate supplies and a person providing online information and database access or retrieval (OIDAR) services to a person in India who is not a registered taxable person from a location outside India

Who is considered a Casual taxable person for online GST registration?

A person without a permanent place of business, who occasionally provides goods or services in an area where GST is applicable. According to GST, this person will be regarded as a casual taxable person. Suppose, a person operates in Bangalore and provides taxable consulting services in Pune, with no place of business there. Here, the person would be regarded as a casual taxable person in Pune.

Who is considered a Non-resident taxable person for online GST registration?

If a non-resident does not have a permanent place of business in India but periodically supplies products or services in an area where GST is applicable. This person will be regarded as a non-resident taxable person under GST. Similar to the situation above, however, the non-resident does not have a place of business in India.

Who is a distributor of Input Services for GST filing?

An ‘Input Service Distributor’ is an office of the supplier of goods or services that receives tax invoices upon receipt of input services. They issue tax invoices for distributing credit of paid on the said services to branch with the same PAN. Therefore, credit can only be distributed for ‘input services’, not for input goods or capital goods.

For assessees who are not currently registered as input service distributors, this will be a new topic. The use of this facility is, however, optional.

What is the meaning of composition taxpayer?

A composition taxpayer is a person registered under the composition scheme who is exempt from having to charge customers the normal rates of GST. Instead, they can file Form CMP-08 and pay tax to the government at nominal or lower rates. For these taxpayers, specific guidelines have been established. When the GST was first implemented, only suppliers of goods with an annual turnover of up to Rs. 1.5 crore were eligible to choose the composition scheme governed by Section 10 of the CGST Act. For online GST registration, the maximum annual aggregate turnover limit must be Rs. 50 lakh.

What is the meaning of QRMP taxpayer?

A registered person who must file a GSTR-3B return and who has an aggregate turnover of up to Rs. 5 crore in the last financial year is eligible for the QRMP Scheme. The scheme allows for the quarterly filing of GSTR-1 and GSTR-3B and the monthly payment of tax using form PMT-06. Furthermore, the Invoice Furnishing Facility (IFF) can be used if B2B sales invoices need to be uploaded.

Online GST registration by type of taxable person

• Within thirty days from the date on which they are required to register, every person is required to submit an application for GST registration in each state where they are liable
• Casual/non-resident taxpayers must submit their applications at least five days before they commence business
• Since the GST registration number will be based on PANs, possessing a PAN is a need for registering
• Since GST registration is State-specific, the assessee must obtain separate registrations for each State
• The assessee has the choice to acquire separate registrations in the same State for each of the ‘business verticals’
• Special GST registration provisions for non-resident taxable persons and casual taxable person
• A casual taxable person or a non-resident taxable person must make an application for registration at least five days before the start of business. Special provisions for casual and non-resident taxable persons under GST are outlined in Section 24
• A temporary registration for a term of 90 days that may be extended for an additional 90 days is available to non-resident or casual taxable persons. A person that registers under Section 24 will need to pay an advance GST deposit based on their anticipated tax liability

Conclusion

Knowing who is eligible to file for GST and what the eligibility requirements are, makes it crucial to keep your company updated with the most recent GST filing in order to avoid penalties.

Click here to contact our team at Finaccle to get GST registration in Surat or anywhere in India! Not only can you get online GST registration done but also will have our support throughout the online GST registration process. All this can be done at an affordable GST registration fees.

We also render services related to the Financial, Accounting, Legal and Taxation domain! Read our blogs to know what is GST, supply under it, how to calculate it! If you have any queries related to GST or any other topic do let us know! Share this blog and stay tuned for more!

Taxpayers who have completed online GST registration, must first understand what Negative Liability for GST Advisory is, to know how to alter the amount in statement. On April 30, 2022, GSTN, the Goods and Services Tax Network, issued an advisory to composition taxpayers regarding negative liability.

Composition taxpayers must make the quarterly payment starting with the 2019–20 financial year. They must submit Form GST CMP-08 and Form GSTR-4 for returns .

In GSTR-4, “tax payable” is determined after deduction of liability reported in GST CMP-08 is made (which is fetched in Table 5 automatically). The advisory states that taxpayers must provide their annual tax liability, calculated at the applicable tax rates, in GSTR-4.

‘0‘ is entered, if no obligation is found in Table 6 in GSTR -4. Even if the taxpayer has successfully paid liability with Form GST CMP-08, here it is assumed that taxpayer has no obligations to pay. It is shown as a negative liability item in Form GSTR-4 and treated as an additional tax payment.

What is the treatment of negative liability?

The issued Advisory to Taxpayers on Negative Liability is as follows:

Composition taxpayers may fail to complete Table 6 of Form GSTR-4 return . Amount paid by the taxpayer through Form CMP-08 goes to the credit of negative liability statement.

• Such a negative liability has currently been removed from the negative liability statement by the GSTIN system. If the taxpayer used any amount from the statement, that amount would be removed from the cash ledger.
• If the cash ledger balance goes negative, the taxpayer must deposit the money using a challan for that amount.
• The taxpayer may request a refund of the excess amount if the payment of the amount that has been credited to negative liability has been made through DRC-03, DRC-08, or GSTR-4 of the following Financial Year. In order to do this, he or she must complete Form RFD-01, a refund application.
• In relation to the debit entries, GSTIN emails the taxpayer.

The GST login website has a report called a negative liability statement. It includes a negative summary for the current quarter in Form CMP-08.

Checking the Negative Liability Statement

By submitting Form GSTR-4 of last year, at the fiscal year end negative liability statements with balance can be checked. Logging into the GST website, the taxpayer has access to the negative liability statement.

• The taxpayer should go to the GST website, select ‘Services’, and then select ‘Ledgers’
• To check the negative liability statement, the user must then select the ‘Negative Liability Statement‘ option

Way to nullify Negative Liability Adjustment

The first step in invalidating a negative liability adjustment is for the taxpayer to raise a ticket on the website for grievances or write to the relevant jurisdictional GST (Goods and Service Tax) officer as soon as they become aware of this problem.

Debit of the Negative Liability

Additional amount in the negative liability statement has been reduced. GSTN noted some taxpayers provided the liability in order to file a statement in Form GSTR-4 or GST CMP-08 of that fiscal year by using extra amount that was made available in the negative liability statement. This amount is debited in the cash ledger. However, certain exceptions do exist here!

To sum up with a few pointers :-

• When the taxpayer deposits the liability through a challan, the cash ledger balance is changed; however, when the liability is not deposited, the balance becomes negative
• In these situations, it is advised that the taxpayers deposit their former liability as quickly as possible using a challan for the same amount
• The taxpayers will receive information about the deduction via emails that may be accessed on the GST website
• By submitting Form GST RFD-01, the taxpayer may claim a refund of the same amount even if the liability has been revised to include the liability for the next year

In conclusion

For GST registration in Surat or anywhere in India, you can reach out to us at Finaccle to complete the online GST registration process. Undoubtedly ,we also provide support throughout the online GST registration process! Additionally, we also render services related to the Financial, Accounting, Legal and Taxation domain! Read our blogs to know what is GST, supply under it, how to calculate it! If you have any queries related to GST or any other topic, do let us know! Share this blog and follow us on the below mentioned platforms to know more!

GST Calculated Online Using Various Tax Slabs

Searching for the best method to calculate GST under the numerous slabs? Read this blog!

Since GST has been introduced, it has been left to the consumer to calculate the overall cost of the transaction and pay GST through the online GST registration process. The broad, tier-based Goods and Services Tax (GST) system combines a number of indirect taxes. Think going out to eat on a limited budget and being unaware of the whole cost until the bill is delivered. Certainly, it can lead to stress which is unnecessary, hence the GST calculator could be useful here. You may learn more about GST, how to calculate it and pay it with the help of this article.

What is GST all about?

GST was first approved by the parliament on March 29, 2017, and it became effective on July 1 of the same year. The CGST, SGST, and IGST are the three components that make up the Goods and Services Tax (GST). Online GST registration process helps in its payment.

All that is necessary to calculate the GST tax payable (i.e. the information and documents) are transferred to a trustworthy online GST tax calculator. The calculator determines it and then pays by online GST registration. Moreover, the user interfaces are specifically designed to meet the requirements of parties such as distributors, retailers, and manufacturers. Each of these versions offer a selection of several input options:-

• For buyer – GST rate, product price
• For manufacturers – GST rate, cost, profit margin
• For wholesalers and retailers – GST rate, items, total cost of the items

Final price includes total tax and a breakdown into CGST and SGST/IGST.

What are the reasons for using the Online GST Calculator?

Here are a few benefits of using an online GST calculator.

• Firstly, it is simple and easy to use, and it provides quick results
• Secondly, using an online calculator reduces the chances of making a mistake
• Thirdly, taxpayers can calculate the different amounts for CGST, SGST, and IGST, in contrast to the GST tax computation formula with accuracy
• Lastly, for the product of your choice, you can estimate the retail price

How to use the Online GST Calculator?

Tax calculation is a simple task for online GST calculators. Firstly, be aware of GST rates that apply to various categories of goods and services.

The GST rates will be 5%, 12%, 18%, and 28% as per applicability. After determining cost of purchase, follow these steps :-

Step 1

Enter total cost of the goods or services

Step 2

Determine the appropriate GST rate for your product or service category

Use a HSN or SAC code for accuracy

Step 3

Click on “Calculate”

Here’s a simple explanation to understand the tax description.

The various GST tax heads are:

• CGST   –  Central Goods and Services Tax charged and collected by central government
• UTGST- Union Territory Goods and Services Tax imposed by Union Territory government
• SGST  – State governments are in charge of imposing and collecting State Goods and Services Tax for transactions within a state
• IGST   – Central Government collects Integrated Goods and Services Tax for interstate purchases

By using an online GST calculator you can know the breakdown of tax and pay it by online GST registration.

Isn’t this the clarity that every taxpayer wants to see?

How is GST calculated?

Following is the mathematical method to calculate GST in case you want to separately verify the results this web tool generates.

Now, two scenarios are possible.

Given the net price, and after computing the GST-inclusive pricing:

First calculate the GST amount (A)

A = (P x r) / 100

Goods and Services Tax rate – r

Base or Total net price – P

Total or gross price G is

G = P + A

You can determine the pre-tax price using the following formula as long as you have the GST-inclusive pricing:

First determine entire GST amount A using gross price G

A = G – [G x {100 / (100 + r)}]

As a result, the Base or Total net price is as follows :-

P = G – A

A tax invoice for the CGST, SGST, and IGST will not be available to you. To obtain this information, you will need to use a GST calculator online.

Conclusion

In conclusion, an online GST calculator can not only prove to be helpful but also save money for you! Hope this article helped you! Get in touch with the experts at Finaccle providing services in the financial, taxation, accounting and legal domain right away to learn everything there is to know about GST, online GST registration process and much more!

GSTR-1: What is it?

You must file GSTR-1 with the utmost care because it serves as the basis for all future GST forms and online GST registration in general. It tracks the supply of goods outwardly.

You must submit it on a monthly or occasionally quarterly basis so that you can keep track of your business. Any person involved in the delivery of products must therefore specify the supply’s terms and the recipients. By doing this, the information filed in GSTR-1 will automatically fill the returns for the inward supply.

Who should submit it?

Every registered dealer must submit GSTR 1 irrespective of the sales and transactions for a specific month. Exceptions are listed below:-

• Input service distributor (ISD) who receives payments for services used by branches
• Company registered for GST under composition scheme
• Provider of online data, database access, or information retrieval services
• If you import products and services from outside India or are in charge of running a business on behalf of a non-resident Indian
• Taxpayer liable for deducting tax at source (TDS) or collecting tax at source (TCS)

How to submit it?

The steps for it by online GST registration are :-

• Log into GSTN portal using user ID and password provided
• Search for “services”
• Select “returns”
• On “returns dashboard”, choose month and year you want to file for
• After seeing returns for the given time period, click GSTR 1
• You can file your returns electronically or upload them
• You have the option of adding invoices or uploading them
• Check the details and the accuracy
• Select “Submit”
• After entered data has been verified, click “file GSTR 1”
• E-sign the form or digitally sign it
• When a pop-up is displayed on the screen, click “yes” to confirm the filling of the GST return
• Watch for generation of Acknowledgement Reference Number (ARN)

Filing of it

There are 13 separate fields on GSTR-1 that you must complete for online GST registration which are as follows :-

• Pre-filled answer for the GSTIN of the individual who submitted the return
• Name that was automatically filled in as the return filer
• Closing balance will be automatically auto-populated, when previous financial year’s total turnover is entered
• Information about taxable outgoing supplies made to a registered individual
• On transaction exceeding Rs. 2.5 lakh, information on interstate outbound supply to a final customer
• Supplies that are zero-rated and deemed exports (to EOUS and SEZS)
• Total aggregation of all outgoing supplies for the month, up to Rs. 2.5 lakh via e-commerce companies
• Details of exempted, non-GST, and zero supply items while completing the online GST registration
• Any necessary corrections or modifications to outbound supplies from prior tax periods, including debit/credit notes and refund vouchers
• Information about external supplies listed using HSN codes
• Taxes owed on the received advance payment
• Taxes paid for prior accounting periods or periods
• For the period for which GSTR 1 is being filed :- Invoices, revised invoices, credit notes, debit notes, and other documents issued

What is required to file it?

In order to file GSTR-1, you require :-

• Actual and legal Goods and Services Tax Identification Number (GSTIN)
• User ID and password for login in portal
• Valid Digital signature certificate (DSC), unless you are able to electronically sign, using supplier class
• Aadhaar card if you plan to e-sign
• Access to cellphone number listed on your Aadhaar card

Are there penalties for filing it late?

GSTR-1 has a deadline for submission through online GST registration which is the tenth of the following month. This only applies to companies with a turnover of more than Rs. 1.5 crore. Otherwise submit the return quarterly by the final day of the relevant period.

The penalty costs 50 rupees or 20 rupees per day, the latter is applicable if you fail to file because you have no returns to do so.

What to bear in mind while filing?

• Double check GSTIN and HSN codes entered
• Identify whether it’s an intrastate or interstate transaction
• GSTR-1 is a requirement for online GST registration but you are exempt from paying taxes until you file GSTR-3B
• Upload invoices periodically throughout the month to prevent bulk submissions
• Digital signature certificate(DSC) must be provided by businesses like LLPS and FLLPs
• Suppliers including proprietors, partnership businesses and others can electronically sign it
• SGST charged will be in accordance with the new state if point of supply has relocated and is now located in a different state
• Use third-party software to submit it quickly

Conclusion

Knowing about GSTR-1 will make it easier for you to comply with GST regulations and complete the online GST registration process easily. Reach out to our team at Finaccle today who will assist you on how to take advantage of the system and increase savings!