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Karnataka assembly unanimously passes state GST bill

With less than a month left for the rollout of the GST, the ‘Karnataka Goods
and Services Tax Bill, 2017’ was unanimously passed by the state assembly here today.
Before Karnataka, as many as 24 states and Union Territories had passed the State
Goods and Services Tax (SGST) bill in their respective legislative assemblies.

As per the GST Constitutional amendment, all states have to pass SGST bills by
September 15, 2017, failing which they will lose their taxation powers.

Piloting the bill, Karnataka Chief Minister Siddaramaiah said the state has always been at
the forefront of issues like implementing tax reforms, including VAT.

“Even the World Bank has acknowledged Karnataka as the most progressive states in
implementing tax reforms,” he added.

Countering this, Vishweshwara Hegade Kageri (BJP) said the image of the state took a hit
for not being the first state to pass the SGST bill, especially after being the first state to implement VAT.

“Karnataka should have been first to have agreed to implement GST, especially after the state was first to implement VAT in the country… But this did not happen… This is one of the examples where it hurt the image of Karnataka being a progressive state,” the BJP
leader said.

Kageri also slammed Siddaramaiah for not agreeing to implement GST on earlier occasions despite 50 per cent of the states agreeing to do so.

“Everybody knows the hurdles created by your party (Congress) in parliament to stall the bill, which was your own baby,” he argued.

Taking an indirect dig at BJPruled states, Siddaramaiah said as many as 24 states and one union territory have agreed to implement GST, but initially Gujarat, Madhya Pradesh and Rajasthan were against it.

Siddaramaiah also said since parliament has already passed GST Bill, the state assembly did not have much scope to debate over it because decisionmaking powers are vested with the GST Council.

However, suggestions submitted by members will be presented during GST Council meetings, he added.

The Chief Minister said he did not attend the GST Council meetings because he did not get time and had deputed Agriculture Minister Krishna Byre Gowda.

Source : Economic Times

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GSTN Registrations Set to Open Doors for E-Commerce Vendors

Small businesses won’t face the risk of their products being taken off online marketplaces

E-commerce com panies such as Amazon, Flip kart and Swiggy concerne about losing business after th rollout of the goods and services tax (GST) on July 1 shouldn’ have to worry about being for ced to exclude pro ducts sold by unregistered vendors.

The GST Network, which provides the new tax regime’s technological backbone, plans to start registra tion of new taxpayers soon to ensure there is no disruption in online commerce.“Registration for first-time taxpayers will open soon in about a week’s time,“ said a GSTN official.

All vendors on ecommerce platforms have to be registered on the GST Network.That’s because online market platforms have to mandatorily collect tax on any payment they make to a supplier.

The market places have been grappling with the matter as a d substantial number of vendors e fall below the tax threshold and hence aren’t registered with the  tax authorities of either the states or the Centre.

Many of these are small businesses, some even operating from home. Another set of sellers were only offering taxexempt items on these platforms and hence were not required to pay tax or register with the tax department.

Industry representatives who recently met finance ministry officials to lobby them on the issue were told that registration would be opened up soon, an e-commerce executive told ET.

GSTN had only opened enrol ment for existing taxpayers who were migrating to GST from either value-added tax, service tax or central excise duty and not for fresh registrants.Thursday was last day for enrolment in the second round.

The third round will open on June 25. It is expected that registration of the first-time vendors will begin before that. While early registration will be good, the government can consider providing some relief to vendors, experts said.

“Alternatively, the government may want to consider giving a relaxation to vendors to obtain the registration after GST is implemented till say the first GST return is filed.“The first GST returns have to be filed on August 10.

Source : The Economic Times New Delhi, 16th June 2017

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SMEs will benefit from composition scheme, says CBEC chief

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna has said that small and medium enterprises engaged in trade, manufacturing and restaurants business will benefit under the new limit of the Composition Scheme for the GST.

“Everybody will get the benefit, those who are already listed in the services or the traders or manufacturers among services… without any change in the rate that is already listed in the section,” Sarna told.

On Sunday, the GST Council decided to allow traders, manufacturers and restaurants with turnover of up to Rs 75 lakh to avail the composition scheme. The bar was earlier set at Rs 50 lakh.

Under the scheme, traders with turnover of up to Rs 75 lakh will be required to pay one per cent tax, while manufacturers will have to pay two per cent and companies engaged in restaurant business five per cent.

“Initially it was up to Rs 50 lakh. The Section 10 of the Act provides it to be increased up to Rs 1 crore. There was a discussion about the difficulties of the small and medium sector and because the central excise assessees were actually exempt below Rs one and a half crore, so it was felt it could be a hardship to them,” Sarna elaborated.

“So the council deliberated a lot on this and finally came to a conclusion that it would be appropriate to make it Rs 75 lakh instead of Rs 50 lakh and that may cover the concern of the small and medium sector.”

However, the business which avail the scheme will not be eligible for input tax credit.

Source: India.com

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ANGEL INVESTMENT

ANGEL INVESTMENT:

Angel Investment means investment in equity shares of startup companies by investors. Such investors who invest in the equity shares of startup companies are called Angel Investors. Angel investors are essentially the well-heeled individuals/firms/companies who used to form a group of investors for investment in startup companies or small entrepreneurs.

PROVISION OF ANGEL TAX

The provision of Angel Investment Tax was introduced in the Union Budget of 2012. Under existing rules, funds raised by an unlisted company through equity issuance are covered under this tax to the extent the amount raised is in excess of the fair market value. Such extra inflow was taxable as “income from other sources” under Section 56(2) of the Income-Tax Act, 1961 (IT Act) and charged the corporate tax rate, resulting in an effective tax of over 30%.

Section 56 of the IT Act, 1961 confers on tax authorities the power to levy excess consideration, more than the fair value, against issue of shares. Section 56 (2) (viib) of the Income Tax Act states:

“Any consideration received by a company (startup) from a resident, against issue of shares, exceeds the fair market value of such shares; such excess consideration is taxable in the hands of the startup, as an income.”

Therefore, under Indian tax law, if an Indian company receives share subscription amount from an Indian resident which exceeds the fair value of shares, then the excess amount is taxed as income of such Indian company.

EXEMPTION OF ANGEL TAX

The Government of India had, now as an initiative to promote start ups, scrapped the so-called ‘Angel Investment Tax’ on investors providing funding to startups.

The Central Board of Direct Taxes vide Notification1 dated June 14, 2016 (CBDT Notification) had made the required changes in Section 56(2)(viib) of the Income- Tax Act, 1961 exempting startups raising funds from angel investors.

It may be noted here that for the purpose of this CBDT Notification, “startup” shall mean a company in which the public are not substantially interested and which fulfills the conditions specified in the Notification2 of the Government of India, Ministry of Commerce and Industry, Department of Industrial Policy and Promotion (“DIPP”), number G.S.R. 180(E), dated the 17th February, 2016, published in the Gazette of India, Extraordinary, part II, section 3, sub-section (i), dated the 18th February, 2016.

As per Notification of DIPP dated February 17, 2016 an entity is considered as a ‘startup’-

  1. Up to five years from the date of its incorporation/ registration;
  2. If its turnover for any of the financial years has not exceeded Rupees 25 crore; and
  3. It is working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property;

Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘startup’. It is to be noted that under the said Notification of DIPP, clarity has been given as to what will qualify as innovation, development, deployment or commercialization.

Accordingly, a firm/company would be considered a start-up if it is incorporated or registered in India not prior to five years, with an annual turnover not exceeding INR 25 Crore in any preceding financial year and at the same time, it should be working towards development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. Further, Startups would need to get a certificate from the Inter-ministerial Board of Certification to get the status of startup.

Therefore, investment in every startup is not eligible for the exemption and only such startups which fulfill the conditions specified by the DIPP, as mentioned herein above, are eligible for exemption from Angel Investment Tax. Further, the said exemption will not apply to retrospective investments.

CONCLUSION

The exemption of Angel Investment Tax for specified startups is a step forwards in implementation of Startup India programme initiated by the Government of India. Due to high tax rate on Angel Investment in India the investors usually hesitate in making investment in such startup companies.

This affects the economic growth rate of the country as well. Now the eligible startup companies need not have to pay Angel Tax even if it exceeds the fair value of shares. This will benefit the resident angel investors as well which are not registered as venture capital funds with Securities and Exchange Board of India.

Although removal of Angel Tax will not benefit all the startups because of the stipulation attached in the Notification of DIPP i.e. only those start ups which have a certificate from the Inter-ministerial Board, fulfill criteria like not being more than 5 years old, turnover not exceeding INR 25 Crore, working towards innovation & commercialization of new products or services and driven by technology or intellectual property, will have the benefit and accordingly, such exemption would be welcomed by the investors as well as by the startup companies which needs such investment.

This will promote the investment in India and definitely provide a huge relief to angel investors and eligible startup companies.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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Taxpayers have to file only one return under GST: Revenue Secy

Taxpayers have to file only one return under GST: Revenue Secy

The fear that three returns in a month and one annual return under the proposed Goods and Services Tax (GST) would make the whole process very cumbersome and compliance-heavy is unfounded and exaggerated, said Revenue Secretary Hasmukh Adhia in an interaction with media here today.

Explaining how filing returns would not be as cumbersome as it is made out to be, Adhia said that when a supplier uploads details of the sales invoices generated in the GST system, and files GST Return-I, the details from the suppliers GSTR-I automatically gets updated in the GST Return II (GSTR-II) of the purchaser. All the recipient needs to do is amend or modify and file the GSTR-II by 15th of every month.

By 17th of the month both the supplier and the recipient would have to reconcile the invoice details and file the third return (GSTR-III) by 20th of the month.

“So what looks like three returns in a month is effectively just one return, and the other two are taken care of with little efforts of the assessee” .

Under the GST, all registered taxable entities have to file three monthly returns and one annual return (see Table). The first return is for all the sales made by the taxpayer,  the second one is for the purchases and the third monthly return is a composite return of all sales and purchases. So, in a year a total 37 returns have to be filed by assessees.

Tax experts and businesses have expressed their concern that three returns in a month would mean a huge compliance burden on taxpayers especially for small traders and SMEs.

 Return Form What to file? By Whom?  By When?
 GSTR-1  Details of outward supplies of taxable goods and/or services effected  Registered Taxable Supplier  10th of the next month
 GSTR-2  Details of inward supplies of taxable goods and/or services effected claiming input tax credit  Registered Taxable Recipient  15th of the next month
 GSTR-3  Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax Registered Taxable Person  20th of the next month
 GSTR-9  Annual Return  Registered Taxable Person  31st December of next financial year

Source : Business Today

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GST Monthly Returns

GST, which is set to roll out from July 1, is expected to see eight million taxpayers come under the new tax regime, with more than 2 billion invoices expected to be filed every month. India’s biggest tax reform in history is also set to make its small to medium
businesses more transparent.

On July 1, as India rolls out its landmark national sales tax, businesses that make less
than 100 million rupees which the government refers to as micro, small and medium
enterprises will all have to digitise

The GST filings are expected to be one of the most significant data points for flowbased
lending, given the authenticity and complete information of an SME’s financial health. Flow based lending entails lending based on cash flows of a company as opposed to collateral or asset based lending. “GST data will become the largest repository of verifiable cash flows and transactions of business.

While small and medium businesses are expected to face teething trouble in complying with the Goods and Services Tax regime, the new tax system will also open an opportunity for them to access credit as GST filings are set to become a significant
data source for flowbased lending.

Small businesses are the backbone of Indian economics. They drive the velocity of
country’s economics, industrial growth, and catalyst for job creation. However, a large
number of businesses in the country are unorganized and irregular in filing returns and
paying taxes.

This could be due to knowledge gap, situational issue or perception among businessman
that they are small in size, operations and earnings, and it is okay to miss the deadline.
As a result, they end up getting a notice from the tax department demanding tax payment, interest, late fee and penalties for noncompliance.

Especially in case of VAT dealers, the severity of consequence in terms of monetary impact is lesser to extent of additional cash outflow to the extent of default.

GST, a comprehensive indirect tax system is all set to subsume a host of existing indirect
taxes and with its implementation, compliance will become a key factor for the success and credibility of a business. GST works on a selfmonitoring mechanism, which is matching the concept of invoice between supplier and recipient of goods and services.

Only after matching of invoices and payment of tax by the supplier, the input tax credit will be available to the recipient.

Thus, a customer will always want to do business with vendors who are compliant. This results in a change of relationship between supplier and recipient from ‘customercumemotional relationship to compliance relationship’.

Hence under GST, noncompliance will not only affect your cash outflow in paying fines, interest, and penalties but also affect the continuity your business and compliance rating.

There will now be four different rates for indirect taxes on goods and services: five, 12, 18 and 28 percent. Except, of course, there are actually five rates, since some things won’t get taxed at all, so zero percent should also be in that list. An additional surcharge will apply to some high tax products and the rate of that surcharge could be anywhere from three percent (on personal jets) to 12 percent (on sodas), 17 percent, 21 percent, 61 percent, 72 percent, 142 percent, 160 per cent, 204 percent or 290 percent (on pipe tobacco). For a reform meant to introduce a single, simple and low tax rate to India, this bewildering maze is a little farcical.

Monthly Statutory Returns under GST 

Based on the category of registered person such as monthly return is to be filed by Regular, Foreign Non Residents, ISD and Casual Tax Payers whereas Compounding/Composite tax payers has to file quarterly returns:

In the table below, we have provided details of all the returns which are required to be filed under the GST Law.

Return Form What to file? By Whom? By When?
GSTR-1 Details of outward supplies of taxable goods and/or services effected Registered Taxable Supplier 10th of the next month
GSTR-2 Details of inward supplies of taxable goods and/or services effected claiming input tax credit. Registered Taxable Recipient 15th of the next month
GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax. Registered Taxable Person 20th of the next month
GSTR-4 Quarterly return for compounding taxable person. Composition Supplier 18th of the month succeeding quarter
GSTR-5 Return for Non-Resident foreign taxable person Non-Resident Taxable Person 20th of the next month
GSTR-6 Return for Input Service Distributor Input Service Distributor 13th of the next month
GSTR-7 Return for authorities deducting tax at source. Tax Deductor 10th of the next month
GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected E-commerce Operator/Tax Collector 10th of the next month
GSTR-9 Annual Return Registered Taxable Person 31st December of next financial year
GSTR-10 Final Return Taxable person whose registration has been surrendered or cancelled. Within three months of the date of cancellation or date of cancellation order, whichever is later.
GSTR-11 Details of inward supplies to be furnished by a person having UIN Person having UIN and claiming refund 28th of the month following the month for which statement is filed

GST Monthly Returns

10th of Subsequent Month Form – GSTR1

In Form GSTR1, you need to declare the details of all the outward supplies of goods and/or services effected during the month. Invoice wise details of outward supplies made to registered dealer and aggregate taxable value of supplies made to consumer are required to be declared. In case, taxable value of supply made to consumer is more than Rs 2.5 lakh and if it is interstate supply, you need to declare invoicewise details.

11th of Subsequent Month Form – GSTR2A
On 11th, the visibility of inward supplies is made available to the recipient in the autopopulated GSTR2A.

This is generated based on the outward supplies declared by your supplier in Form GSTR1. The period from 11th to 15th will allow for any corrections (additions,
modifications and deletion) in Form GSTR2A.

This is the most critical phase of filing of your return, as any omission or correction not reconciled as per the statement in Form GSTR 2A with your inward supplies register, will impact your Input Tax credit eligibility. To save time, quicker and accurate reconciliation, technology will play a key role in your compliance.

15th of Subsequent Month Form – GSTR 2
After reconciling, any additional claim or correction as per Form GSTR 2A needs to be incorporated and submitted in Form GSTR 2 by
15th of subsequent month. Based on the claim reported in Form GSTR2, ITC will be credited to your Ecredit ledger on provisional basis and post matching of invoice, it will be finalized.

16th of Subsequent Month Form – GSTR1A
The corrections (addition, modification and deletion) reported by you in Form GSTR2
will be made available to your supplier in Form GSTR1A.
The supplier has to accept or reject the adjustments made by the customer by verifying with suppliers outward supply register.

20th of Subsequent Month Form – GSTR3
On 20th, based on the Form GSTR1 and Form GSTR2, an autopopulated return GSTR3 will be available for submission along with the payment.

Final Acceptance of Input tax credit in Form GST MIS1 After the due date of filing the monthly return in Form GSTR3, the inward supplies will be matched with the outward supplies furnished by the supplier, and then the final acceptance of input tax credit will be communicated in Form GST MIS1.

The following details will be considered in the matching of invoices:
GSTIN of the supplier
GSTIN of the recipient
Invoice/or debit note number
Invoice/or debit note date
Taxable value and
Tax amount

The claim of input tax credit will be considered as matched, if the amount of input tax credit claimed is equal to or less than the output tax paid on such tax invoice or debit note by the corresponding supplier.

Also, the mismatch input tax credit on account of excess claims or duplication claims will be communicated to recipient in Form GST

MIS 1 and to supplier in Form GST MIS 2.
Discrepancies not ratified will be added as output tax liability along with interest. However, there will be some breathing space since the law provides a window of two months to ratify the discrepancies before reversing the ITC claim on provision basis.

A Way Forward

Activity. The return cycle under GST will put an end to the existing practice. Today, most of the small business prepare their returns in a day by summarizing their purchase and sales transactions. This will no longer be relevant since GST Return cycle is spread across the month.

Secondly, the businesses need to move from offline data recording to online data recording to file the return. Today, most of the small businesses port the data from their books to offline tools and file their return. This will prove to be a costly affair since, under GST inward supplies and outward supplies will be autopopulated by GSTN and need to be reconciled with books.

Technology will play a pivot role for businesses under GST as GST is highly transaction based compliance system. The technology should help you to seamlessly prevent, detect and correct the exceptions before the filing of return and reconcile your books with GSTN.

With the right technology, businesses will have timely compliance, manage cash flows better and adding up to compliance credibility.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

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Goods & Services Tax (GST)

The Union government has shown strong determination in implementing a Goods and Services Tax (GST) that will subsume a majority of the present indirect tax levies in India. This paradigm shift in indirect tax is currently underway and the final GST law is expected to be implemented starting 1 July 2017. As part of this change, every taxpayer or assessee registered under the present indirect tax levies and who meets the criteria laid down in the Model GST Law, is required to register under GST.

The registration process involves migration to the GST portal in a phased manner. The process of GST migration for state value added tax (VAT) assessees began in November 2016 and was extended to cover excise and service tax assessees starting January 2017.

Furthermore, the Central Board of Excise and Customs (CBEC) has recently, via a notice on its website, requested assessees to whom a provisional identification has been issued for migration to GST, to complete the migration process by 31 March 2017.

GST – FAQ’s

Q) Who is required to register under the GST regime?

Persons required to register under GST can be broadly classified into 3 categories:

(a) Persons having a valid PAN (permanent account number issued for tax purposes) and existing registration under present Indirect tax laws (VAT, service tax or central excise).

(b) Persons crossing threshold limit of turnover of GST or desirous to obtain voluntary registration under GST.

(c) Registration for certain key compliance/specified assessees such as causal traders, persons liable to TDS (tax deducted at source), non-resident persons, etc.

Q) What is GST migration?

GST migration means enrolment of existing Indirect tax assessees (i.e. assessees holding registrations under VAT, service tax or central excise) using the GST portal, in order to transfer such assessee to the GST regime.

 

Q) What is enrolment?

Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key information fields on the GST portal. In other words, the GST portal requires assessees holding existing registrations under the present indirect tax regime to validate their data as displayed on the GST portal and upload supporting information.

 

Q) What is last date for enrolment for existing assessees?

As per a notification on the CBEC website, existing assessees have been urged to enrol using the GST website on or before 31 March 2017.

Q) How are existing assesses enrolling on the GST portal?

Assessees have to obtain a provisional identification and password from the state VAT website or ACES website (as the case may be) and use them to access the GST portal. Having accessed or logged into the GST portal the assessee will be required to create a new user ID and password. The assessee can obtain a provisional GST registration number once the new user ID has been created.

Subsequently, the assessee is required to upload prescribed information such as proof of constitution of business, director details, etc. on the portal to generate an Application Reference Number (ARN) to complete the application for migration.

 

Q) What is the provisional ID and provisional GST number?

The provisional ID is a temporary ID provided by current indirect tax authorities to enable existing assessees to access the GST portal for the first time. The provisional GST number is the GST number allotted to the assessee, which will be finalised once the application is processed by the department.

Q) How many provisional IDs shall be granted in case of multiple central excise/service tax registrations on the same PAN in a state?

According to guidance issued by the CBEC, only one provisional ID shall be issued by the central indirect tax authority to assessees holding a valid PAN and not having a provisional ID issued by any state VAT authority.

 

Q) How many provisional IDs shall be granted in case of centralised service tax registration on the same PAN in multiple states?

 

As per documents issued by CBEC in relation to GST registration, one provisional ID shall be issued per state (which will cover all premises in that particular state). However, various centralised service tax assessees are facing issues where only one provisional ID is being issued for all premises under the centralised service tax registration. In such a case, given that GST registration is statewise, assessees are contacting the jurisdictional service tax office for a provisional ID and password for premises in different states.

Q) 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.

 

Q) When will the provisional GST number be finalised?

 

The date of finalisation of a provisional GST number has not been prescribed by the tax authorities as of now. However, as per the Model GST law, the provisional GST number shall be valid for a period of six months from the date of issue, that is, implementation date of GST. Given this, it is likely that the finalisation of applications filed will be concluded within six months from the date of implementation of GST.

 

Q) Will the provisional GST number change after finalisation?

 

It is likely that the provisional GST number will not change after finalisation of application.

Q) What is CBEC Mitra?

 

CBEC Mitra is a new CBEC GST helpdesk which has been launched to provide assistance to assessees who face any difficulty or if they have any query relating to GST registration.

This helpdesk is an Interactive Voice Response (IVR) based service and will be operational 24/7.

The assessee can email their difficulties/queries to cbecmitra.helpdesk@icegate.gov.in or call the helpdesk numbers – CBEC: 1800-1200-232 and GSTN: 0124-4688999

 

Q) Has the GST registration process been prescribed for assessee who are not registered under  the present indirect tax levies regime?

No, the procedure for registration of assessees who are not registered under the present IDT regime has not yet been prescribed.

 

Q) What do I do if the legal name of the entity as per PAN and service tax or VAT registration is different?

In case of such a mismatch, the GST portal will not be able to generate an ARN. The GST helpdesk suggests that the relevant authority should be contacted to correct such error in name on respective records as well as request the VAT or CBEC authorities for a new provisional ID and password for access to the GST portal. In case of proprietors, the GSTN portal will allow for the name, as per PAN, editable in the application form.

Q) What should I do if I do not want registration under GST?

Some state VAT authorities are accepting an undertaking from assessees who do not want to register under GST regime along with the reason for not migrating or registering. However, presently, no procedure has been prescribed for the same and most of the state VAT authorities as well as CBEC are mandating assessees to register and migrate to the GST portal and opt for cancellation of registration under the GST regime in case they do not want a GST registration.

What is a meaning of Goods & Services Tax (GST)?

GST is an indirect tax which is applicable on all supply of goods & services in India. GST shall be levied in place of existing sales tax, VAT, excise duty, customs, service tax, luxury tax etc. If you are supplying goods and services in India, then it is mandatory to take the GST registration.

How to register for GST in India?

(1) Creation of User ID & Password on Common Portal: – This is the first step towards enrollment for migration to GST, which start with provisional ID and password as given to the taxpayer by respective State Vat department through dealer’s login. On entering provisional Id & Password, GST Common portal will ask for Email Id and Mobile number of authorized person on which two different onetime passwords shall be sent. Entering one time password of both Email Id & Password simultaneously is mandatory to create a new User Id & Password. Five questions shall be asked to reset the password in the event of forgot password. Taxpayers are therefore advised to take out a print before submitting a list of security questions. Initially i.e. up to 1st April 2016, Email Id and Mobile number of authorized person is Noneditable.

(2) Details of Business: –After successful creation of user Id & Password, taxable person need to login into GST common portal. After login on the dashboard itself a provisional GST number shall be seen, which shall start with state code followed by 10-digit pan number and 3 more system generated digits. In very first tab taxpayer has to enter various business details. Some details like PAN number, Legal Name are auto populated from the system and rest of the details such as various registration details along with the date of registration as provided underCentral Excise, Service tax, VAT, Luxury Tax, Entertainment Tax, IEC, CIN number etc. shall be filled manually.

In addition to above a scanned copy of proof of constitution i.e. Shop Act License/Factory License in case of individual, Partnership Deed in case of Partnership Firm, or Registration Certificate/Proof of Constitution in case of Society, Trust, Club, Government Department, Association of Person or Body of Individual, Local Authority, Statutory Body and Others etc.) shall be attached. Scanned copy of proof of constitution should be in jpeg or pdf format with maximum size of 1 MB.

(3) Details of Proprietor, Partner, Managing and Whole Time Director, Karta: – In this tab details (of Proprietor, Partner, Managing and Whole Time Director, Karta) such as Full Name, Full Name of Father/ Husband, DIN Number, Date of Birth, Mobile Number, Gender, Designation, PAN Number, Aadhar Number shall be entered.

In addition to above details of Residential Address (Building/Flat No, Name of Premises, Road, Locality, State, District, Pin code etc.) and Scanned copy of Photograph (In JPEG format only with maximum size of 100 KB) is also required to be uploaded on common portal. It is important to note that details as specified above such as name, date of birth etc. should be matched with the details mentioned on PAN Card. Validation error may occur in case of mismatch.

(4) Details of Authorized Signatory: – All the details as stated in point no 3 above are also common for authorized signatory. Apart from that a scanned copy of board resolution or authority letter evidencing appointment of such person as an authorized signatory along with acceptance letter shall be uploaded on GST common portal. For this purpose, board resolution or authority letter along with acceptance letter should be in pdf/jpeg format with maximum size of 100KB. Separate board resolution or authority letter should be made for each signatory.

Maximum 10 peoples including Proprietor, Partner, Managing and Whole Time Director or Karta as the case may be can be appointed as an authorized signatory for such business entity. Board resolution or authority letter is also required for Partner, Managing and Whole Time Director or Karta if they want to be act as an authorized signatory

(5) Details of Principal Place of Business: – Details such as Address (Building/Flat No, Name of Premises, Road, Locality, State, District, Pin code etc.), Official Email-Id, Mobile Number, Office Telephone Number, Nature of possession of premises (i.e. Own, Rented, Leased, Consent, Shared), Scanned copy of Proof of Principal place of business i.e. in PDF/JPEG format with maximum size of 1 MB is required to be given under this tab. Following documents can be used a proof of Principle place of business

(a) For Own premises –Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(b) For Rented or Leased premises –A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(c) For premises not covered in (a) & (b) above –A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties, also, the same documents may be uploaded.

It is important to note that principle place of business means a place from where major activities of business are carried out. It may happen that the registered office and principle place of business are different. In addition to above nature of activities from such premises such as Factory / Manufacturing, Wholesale Business, Retail Business, Warehouse/Deport, Bonded Warehouse, Service Provision, Office/Sale Office, Leasing Business, Service Recipient, EOU/ STP/ EHTP, SEZ , Input Service Distributor, (ISD), Works Contract etc. are also to be mentioned at the time of registration

(6) Details of Additional Place of Business:- Additional places includes factory, office, godown, warehouse or any other place where taxable person stores his goods or provides or receives any goods and/or services. All the details as specified for principal place of business are equally applicable for additional place of business also.

If principle person send any input/capital goods to job worker for job worker and if he wants to supply such goods after such process from the premises of job worker and if job worker is not registered under GST, then principle has to declare place of business of job worker as his place of business in terms of proviso to Sub clause (b) to Sub Section (1) of Section 55.

(7) Details of Goods & Service supplied: – HSN wise details of 5 top goods should be specified. HSN codes as stated here are the same as stated under existing Central Excise Law. Similarly, details of top 5 services along with the Service Accounting code should also be given under the details of services. For this purpose, service accounting codes are same as stated under existing service tax law.

(8) Details of Bank Accounts: – A taxpayer needs to provide top 10 bank account numbers along with IFSC code and Scanned Copy of first page of Bank Statement/passbook of each bank account. Copy of bank statement can be scanned in PDF/JPEG format with maximum size of 500 KB in case of bank statement and 100 KB in case of bank passbook.

(9) Verification: – After filling an application a person can submit the application using Class-II or Class-III digital signature (DSA). Filling of an application with DSA is mandatory for Companies and Limited liability partnership. Taxpayer other than Company and LLP can also file an application by using e-signature option. i.e. by using Aadhar number of authorized person. GST Common portal shall send a request using inter-portal connectivity to UIDIA system to send one time password (OTP). UIDIA system shall send OTP to registered email ID & Mobile number registered against such Aadhar number.

Before validation of application, applicant must register his DSA on GST portal under register/update DSA. For this he must download Em-signer application, which is available on GST common portal. Apart from this Windows 32/64 bits OS must be installed in to his computer system. Applicant should also see whether browser version which he is using is 10+ in case of Internet Explorer, 49+ in case of Google chrome, and +45 in case of Mozilla Firefox. DSA of following person can be used for validation of GST enrollment application form

Proprietorship Proprietor
Partnership Managing / Authorized Partners
Hindu Undivided Family Karta
Private Limited Company Managing / Whole-time Directors and Key Managerial Persons
Public Limited Company Managing / Whole-time Directors and Key Managerial Person
Society/ Club/ Trust/ AOP Members of Managing Committee
Government Department Person In charge
Public Sector Undertaking Managing / Whole-time Director and Key Managerial Person
Unlimited Company Managing/ Whole-time Director and Key Managerial Person
Limited Liability Partnership Designated Partners
Local Authority Chief Executive Officer ( CEO) or Equivalent
Statutory Body Chief Executive Officer ( CEO) or Equivalent
Foreign Company Authorized Person in India
Foreign Limited Liability Partnership Authorized Person in India
Others Person In charge

After successful verification GST Common Portal system, will generate acknowledgement containing acknowledgement receipt number (ARN) within next 15 minutes after submission& that is the last step of enrollment for migration to GST. This number should be kept into the record for all future correspondence with GST common portal as far as registration of taxpayer is concerned. After the appointment date of GST Act taxpayer can track status of his application using ARN number.

GST registration is a complete online procedure which is done by applying on GSTN website directly. All supporting documents are uploaded on the GSTn directly and once, they are fine, registration is granted. Let us understand it in three steps:

# Arrange documents: The first step is to arrange all documents which are required for GST registration. Further, since GST is a completely new tax, one should get the documents checked by a professional to avoid the rejection from the department.

# File application:After arranging all the documents, one should file the documents along with online application on the GSTN website. Make sure all the documents uploaded are off appropriate size otherwise you will face uploading problem.

# GST registration: If the government officer finds all the documents in place, then they shall issue the GST registration certificate in India. It generally takes 3 to 5 days for GST registration along with DSC.

Documents Required for Online GST Registration in India

Business related proof

  • Passport Size Photo
  • Partnership Deed/Registration Proof like COI
  • Copy of Bank Statement
  • Authorization Form

For Address Proof

  • Ownership Proof (Electricity Bill etc) – if property is owned.
  • Rent Agreement (if property is on rent)
  • NOC (Download format)

GST Registration Procedure in India

We have well prepared and experience team working to decode GST in the most easiest way possible. Therefore, we have divided the GST registration procedure in three steps:

# Step 1 – Arrange all required documents: The first step is to arrange all the required documents as said above. Further, on submitting to us the required documents, you shall be required to pay our fees in advance.

# Step 2 – Application filing and response: After filing the application form along with the required document in form GST Reg 1, we shall wait for at least 3 days for the response on the application.

# Step 3 – GST registration & Compliance: If the documents and application filed in is place, then the department shall be issued the GST registration certificate and after that you need to file 3 monthly returns.

GST Registration Procedure in India

# Step 1 – Arrange all required documents: The first step is to arrange all the required documents as said above. Further, on submitting to us the required documents, you shall be required to pay our fees in advance.

# Step 2 – Application filing and response: After filing the application form along with the required document in form GST Reg 1, we shall wait for at least 3 days for the response on the application.

# Step 3 – GST registration & Compliance: If the documents and application filed in is place, then the department shall be issued the GST registration certificate and after that you need to file 3 monthly returns.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819