Registration Process in GST

What is Registration Process in GST

All existing registered persons, whether with the Centre or State under any of the tax statues being subsumed in GST, would be allotted a GST registration number called Goods and Services Tax Identification Number (GSTIN) on voluntary basis. Dealers who are below the GST threshold will have option to remain in GST chain. Lets have a look at registration process in GST.

Registration of a business with the tax authorities implies obtaining a unique identification code from the concerned tax authorities so that all the operations of and data relating to the business can be agglomerated and correlated. In any tax system this is the most fundamental requirement for identification of the business for tax purposes or for having any compliance verification program. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:

  • 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.
  • Pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

Basically following will be assumptions for registration in GST:

  • A Legal Person can not can collect GST and pass on GST without GSTIN.
  • A Person having the turnover below the specified threshold limit would not be required to obtain registration. Once the amount of turnover exceeds the specified threshold limit person would be required to obtain registration within 30 Days. However Person can go for voluntary registration.
  • There will be another relatively higher threshold of Gross Annual Turnover (to be calculated on all-India basis) to be called Compounding turnover up to which the registered person can opt to pay tax at a specified percentage of the turnover, without entering the credit chain. Such registered person will neither be allowed to collect tax from his customers nor claim any input tax credit. Compounding dealers shall remain under compounding scheme till their turnover crosses threshold or they opt for out of the scheme. Such dealers don‟t have to apply every year to remain under the compounding scheme. However, if the compounding dealer opts out of compounding in a financial year, for any reason, but eligible and wish to avail compounding in the next financial year, such dealer will have to apply afresh for compounding in the beginning of the financial year in which he wishes to claim compounding scheme.
  • Irrespective of turnover, if a taxable person carries out any inter-state supply and / or is liable to pay GST under reverse charge, he will be compulsorily required to take registration. Such person shall neither be eligible for exemption threshold nor for Compounding scheme.

What is GSTIN (Goods and Service Tax Identification Number)

Each taxpayer will be allotted a State wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Structure will be as follows-

State Code

PAN Entity Code Blank Check Digit

1

2 3 4 5 6 7 8 9 10 11 12 13 14 15
  • 13th digit would be alpha-numeric (1-9 and then A-Z) and would be assigned depending on the number of registrations a legal entity (having the same PAN) has within one State.
  • 14th digit of GSTIN would be kept BLANK for future use.
Registration Process in GST
Registration Process in GST

New Registration in GST

New applicant can apply for registration:

(1) at the GST Common Portal directly

(2) at the GST Common Portal through the Facilitation Center (FC) Multiple applications can be filed at one go where a taxable person seeks registration in more than one State or for more than one business vertical located in a single / multiple State(s).

Following scanned documents are required to be filed along with the application for Registration –

Relevant Box No. in the Registration Form Document required to be uploaded Reason for requirement Relevant Box No. in the Registration Form Document required to be uploaded Reason for requirement Relevant Box No. in the Registration Form Document required to be uploaded Reason for requirement
Constitution of Business · Partnership Deed in case of Partnership Firm ; · Registration Certificate in case of other businesses like Society Trust etc. which are not captured in PAN. In case of Companies GSTN would strive for online verification of Company Identification Number (CIN) from MCA21.

Constitution of business / applicant as per PAN would be taken except for businesses such as Society

Partnership Deed would be required to be submitted in case of Partnership Firms.

Details of the Principal Place of business · In case of Own premises – any document in support of the ownership of the premises like Latest Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy

· In case of 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 Tax Paid Receipt or Municipal Khata copy or Electricity Bill copy

· In case of premises obtained from others, other than by way of Lease or Rent – 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

· Customer ID or account ID of the owner of the property in the record of electricity providing company, wherever available should be sought for address verification.

This is required as an evidence to show possession of business premises. If the documentary evidence in Rent Agreement or Consent letter shows that the Lessor is different from that shown in the document produced in support of the ownership of the property, then the case must be flagged as a “Risk Case”, warranting a post registration visit for verification. GST Law Drafting Committee may add penalty provision for providing wrong lease details.
Details of Bank Account (s) Opening page of the Bank Passbook held in the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFS Codes and Branch details This is required for all the bank accounts through which the taxpayer would be conducting business.
Details of Authorised Signatory For each Authorised Signatory:

· Letter of Authorisation or copy of Resolution of the Managing Committee or Board of Directors to that effect

This is required to verify whether the person signing as Authorised Signatory is duly empowered to do so.
Photograph

· Proprietary Concern – Proprietor

· Partnership Firm / LLP – Managing/ Authorized Partners (personal details of all partners is to be submitted but photos of only ten partners including that of Managing Partner is to be submitted)

· HUF – Karta

· Company – Managing Director or the Authorised Person

· Trust – Managing Trustee

· Association of Person or Body of Individual –Members of Managing Committee (personal details of all members is to be submitted but photos of only ten members including that of Chairman is to be submitted)

· Local Body – CEO or his equivalent

· Statutory Body – CEO or his equivalent

· Others – Person in Charge

Refer to CBEC Website for More

Contact us for Registration process in GST. Just Provide Basic KYC Documents we and seat back and relax we will do everything for you…

Significant Changes in TDS Rates in Budget 2016-17

Significant Changes in TDS Rates in Budget 2016-17

Under the scheme of deduction of tax at source as provided in the Act, every person responsible for payment of any specified sum to any person is required to deduct tax at source at the prescribed rate and deposit it with the Central Government within specified time. However, no deduction is required to be made if the payments do not exceed prescribed threshold limit.

 

In order to rationalise the rates and base for TDS provisions, the existing threshold limit for deduction of tax at source and the rates of deduction of tax at source are proposed to be revised as mentioned in table 3 and table 4 respectively.

 

Table 3: Increase in threshold limit of deduction of tax at source on various payments mentioned in the relevant sections of the Act

 

 

Present Section Heads Existing Threshold Limit (Rs.) Proposed Threshod Limit (Rs.)
192A Payment of accumulated  balance due to an employee 30,000 50,000
194BB Winnings from Horse Race 5,000 10,000
194C Payments to Contractors Aggregate  annual limit of 75,000

Aggregate annual limit of 1,00,000

194LA Payment of Compensation on acquisition of certain Immovable Property 2,00,000 2,50,000
194D Insurance commission

 

20,000 15,000
194G Commission on sale of lottery tickets 1,000 15,000
194H Commission or brokerage 5,000 15,000

 

Table-4 : Revision in rates of deduction of tax at source on various payments mentioned in the relevant sections of the Act:

 

Present Section Heads Existing Rate of TDS (%) Proposed Rate of TDS (%)
 

194DA

 

Payment in respect of Life Insurance Policy

 

2%

 

1%

 

194EE

 

Payments in respect of NSS Deposits

 

20%

 

10%

 

194D

 

Insurance commission

 

Rate in force (10%)

 

5%

 

194G

 

Commission on sale of lottery tickets

 

10%

 

5%

 

194H

 

Commission or brokerage

 

10%

 

5%

 

The following provisions which are not in operation are proposed to be omitted as detailed in Table 5.

 

Table 5: Certain non-operational provisions to be omitted

 

Present Section Heads Proposal
 

194K

 

Income in respect of Units

 

To be omitted w.e.f 01.06.2016

 

194L

 

Payment of Compensation on acquisition of Capital Asset

 

To be omitted w.e.f 01.06.2016

These amendments will take effect from 1st June, 2016.

[Clause 70 to 79]

 

 

Enabling of Filing of Form 15G/15H for rental payments

 

The provision of sub-section 194-I of the Act, inter alia, provides for tax deduction at source (TDS) for payments in the nature of rent beyond a threshold limit. The existing provisions provide threshold of Rs. 1,80,000 per financial year for deduction of tax under this section. In spite of providing higher threshold for deduction tax under this section, there may be cases where the tax payable on recipient’s total income, including rental payments , will be nil. The existing provisions of section 197A of the Income-tax Act, inter alia provide that tax shall not be deducted, if the recipient of certain payments on which tax is deductible furnishes to the payer a self- declaration in prescribed Form.No. 15G/15H declaring that the tax on his estimated total income of the relevant previous year would be nil. In order to reduce compliance burden in such cases, it is proposed to amend the provisions of section 197A for making the recipients of payments referred to in section 194-I also eligible for filing self-declaration in Form no 15G/15H for non-deduction of tax at source in accordance with the provisions of section 197A.

 

This amendment will take effect from 1st June, 2016.

[Clause 84]