image image

General Service Taxation(GST)

The General Service Taxation (GST) scheme known as the Goods and Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017[1][2], following the passage of Constitution 122nd Amendment Bill. The GST is governed by GST Council and its Chairman is the Finance Minister of India. Under GST, goods and services will be taxed at the following rates, 0%, 5%, 12%, 18%, 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold

Documents required for Company Registration ?

For Sole Proprietorship/Individual/HUF

Individual Documents

     Copy of PAN Card of directors

     PAN Card and ID proof of the individual

     Copy of cancelled Cheque or Bank Statement

     Declaration to Comply with the provisions

     Photograph of individual /Karta of HUF

Place of Business

     Copy of electricity bills/landline bills/water bill

     No objection certificate of the owner

     Rent agreement(in case premise is rented)

FOR Partnership/LLP

Business Documents For Partnership

     PAN Card

     Copy of bank statement of firm

     Declaration to comply with the provision(in case person authorised different from owner/partner/Director)

     Photograph of Partner.


For LLP

     PAN Card

     Partnership Agreement

     Copy of bank statement of firm

     Declaration to Comply with the provisions

     Registaration Certificate

     Copy of Board Resolution

Partner Documents

     Photograph of Partner

     PAN & ID proof of Partner

Place of Business

     Copy of electricity bills/landline bills/water bill

     No objection certificate of the owner

     Rent agreement(in case premise is rented)

FOR Company

Company Documents

     PAN Card of the Company

     Registration Certificate of the Company

     MOA/AOA

     Copy of Bank statement.

     Declaration to comply with the provisions.

     Copy of Board Resolution.

     Photograph of Promoter

Director Documents

     PAN & ID proof of Directors

     Copy of electricity bills/landline bills,water bill

     No objection certificate of the owner

     Rent agreement in case of premise is rented


Frequently Asked Questions ?

   What is GST ?

Goods and Service Tax is a tax proposed to be levied on supply of goods and services right from the point of manufacturing to final consumption by user.


   For Whom DSC is mandatory for enrollment in GST ?

DSC is mandatory for enrolment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs).


   Who is required to get registered under GST ?

 person making any inter-state taxable supply
 causal taxable persons
  Easy to attract employees
 person who are required to pay tax under reverse charge
  non-resident taxable person
  person who required to deduct TDS u/s 37 of the Act


   What is Composition Scheme ?

Composition scheme is introduced for small tax payers to reduce the compliance burden on them.
 File summarized returns on a quarterly basis instead of multiple monthly returns.
 Pay tax only to a maximum of 2% for manufacturers, 5% for restaurant service sector and 1% for other suppliers
 Cannot collect any tax from or issue tax invoice to customers
 Cannot avail input tax credit


   Who is eligible for Composition Scheme?

Only those persons who fulfil all the following are eligible to apply for composition scheme.
 Deal in intra-state (not inter-state) supply of goods (not services except restaurant sector).
 Have an annual turnover below Rs. 75 lakhs(Rs. 50 Lakhs for North Eastern States) in preceding financial year, and
 Are not liable to pay tax under reverse charge mechanism.


   What conditions need to be fulfilled by registered taxable person to claim Input tax credit(ITC) ?

Following conditions are to be fulfilled-
 He is in possession of tax invoice or debit note or such other tax paying documents.
 He has received the goods or services or both.
 The supplier has actually paid the tax charged in respect of the supply to the government.
 The supplier has filed GST return .


   What is the due date of filing details of outward supp;ies under GSTR-1 ?

Following conditions are to be fulfilled-
 Every registered person (other than a person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017).
 Required to furnish the details of outward supplies of goods or services or both under section 37, shall furnish such .
 Details in FORM GSTR-1, on or before the tenth day* of the month succeeding the said tax period electronically .
 Through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.
 GST council in its 17th meeting, gave relaxation to file the return for the month of July by September 5, 2017 instead of August 10, 2017 and for the month of August by 20thSeptember.


   What are the benefits of registering Business Under GST ?

The benefits of registering business under GST are as follows:
 Legally recognized as supplier of goods or services.
 Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
 Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.


   What is the threshold limit for registering under GST ?

Region
Aggregate Turnover Liability for Payment of Tax
North East India
Rs 9 Lakhs
Rest Of India
Rs 19 Lakhs


   When liability for payment of GST occurs ?

Region
Aggregate Turnover Liability for Payment of Tax
North East India
Rs 10 Lakhs
Rest Of India
Rs 20 Lakhs


   If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration ?

No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST .


   Is a person register itself under GST even if he is not liable to register ?

Yes,a person, though not liable to be registered, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.


   Is it mandatory that the Digital Signature Certificate (DSC) of an authorised signatory should be PAN-based while authenticating the application ?

In case the primary authorised signatory is a citizen of India, PAN is mandatory. However, if the primary authorised signatory is not a citizen of India, then PAN is not mandatory but a passport number is. Accordingly, the DSC of the authorised signatory may or may not be PAN-based.


   Who can be the primary Authorized Signatory in GST ?

Type of Business
Who can be the Authorized Signatory ?
Proprietor
The proprietor or any person authorized by the proprietor
Partnership
Any authorized partner or any person authorized by the partners
Company, LLP, Society or Trust
The person authorized by Board or Governing Body. can act as Primary Authorized Signator


   Which are the commodities proposed to be kept outside the purview of GST ?

Alcohol for human consumption, Petroleum Products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel& Electricity.


   Is the reverse charge mechanism applicable only to services ?

No, reverse charge applies to supplies of both goods and services.


   What will be the consequences of purchasing goods from Unregistered Dealer?

The receiver of goods will not be able to get ITC. Further, the recipients who are registered under composition schemes would be liable to pay tax under reverse charge.


   Who is an ISD?

It is basically an office meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units proportionately.


   Will ISD be required to be separately registered other than the existing taxpayer registration ?

Yes. The ISD registration is for one office of the taxpayer which will be different from the normal registration.


   At the time of registration will the assessee have to declare all his places of business ?

The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.


   Are self-supplies taxable under GST?

Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise egistration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable.


   A dealer of Television transfers a Television from his stock in trade, for personal use at his residence. Will the transaction constitute a supply ?

Yes. As per Schedule-I (1) business assets put to a private or non-business use without consideration will be treated as supply.


    Whether Works contracts and Catering services will be treated as supply of goods or supply of services ?

Works contract and catering services shall be treated as supply of service


    What is time of supply of service in case of tax payable under reverse charge ?

The time of supply will be the earliest of the following dates: a) date of receipt of services; b) date on which payment is made; c) date of receipt of invoice; d) date of debit in the books of accounts by supplier.