Goods and Service Tax (GST)

Goods and Service Tax (GST)

GST is a single comprehensive tax on the supply of goods and services across India, right from the manufacturer to the Consumer. GST is applicable to the whole of India except the state of Jammu & Kashmir. GST would be levied on Supply of goods and services or both and hence the present prevalent concepts of levy of Excise Duty on manufacture, VAT on sales, Central sales Tax on sales, Service tax on services, Entry tax on entry of goods in local area would no longer be in existence.

Who is Liable for GST Registration?

Every person needs to get registered under GST in the state from where he makes taxable supply of goods and/or services, if his aggregate turnover in a financial year exceeds Rs.20 Lakhs (Rs.10 Lakhs in North Eastern States including Sikkim)

Generally, the liability to register under GST arises when you are a supplier within the meaning of the term, and also your aggregate turn over in the financial year is above the Exemption threshold of Rs.20 lakh rupees. However, the GST law enlists certain categories of suppliers who are required to get compulsory registration irrespective of their turnover that is to say, the threshold exemption of 20 lakh is not available to them. Some of such suppliers who need to register compulsorily irrespective of the size of their turnover are:

  • Inter-state suppliers

  • A person receiving supplies on which tax is payable by recipient on reverse charge basis

  • Casual taxable person who is not having fixed place of business in the State or Union Territory from where he wants to make supply

  • Non-resident taxable persons who are not having fixed place of business in India

  • A person who supplies on behalf of some other taxable person (i.e. an Agent of some Principal)

  • E-commerce operators, who provide platform to the suppliers to supply through it

  • Suppliers who supply through an e-commerce operator

  • Those ecommerce operators who are notified as liable for GST payment under Section 9(5)

  • TDS Deductor

  • Those supplying online information and data base access or retrieval services from outside India to a non-registered person in India.

  • Who is exempted from Registration?

    The following persons shall not be liable to registration, namely:–

  • any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

  • An agriculturist, to the extent of supply of produce out of cultivation of land.

  • The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act

  • GST Registration Process

    Procedure for Registration

    Every person who is liable to be registered under GST shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration. Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.

    Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 in order to be eligible for grant of registration.

    Accounts and other records

    Every registered person shall keep and maintain at his principal place of business as mentioned in the certificate of registration a true and correct account of

  • Inward and outward supply of goods or services or both;
  • Input tax credit availed;
  • Output tax payable and paid;
  • Stock of goods;
  • Production or manufacture of goods;
  • Such other particulars as may be prescribed.
  • Period of retention of Accounts

    Every registered person required keeping and maintaining books of account or other records in accordance with the provision of GST shall retain them until the expiry of 72 months from the due date of furnishing of annual return for the year pertaining to such accounts and records.

    Cancellation of Registration

    The proper officer may either on his own motion or on application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration in such manner and within such period as may be prescribed, having regard to the circumstances where-

  • The business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of or
  • There is any change in the constitution of the business; or
  • The taxable person, other than the person registered under GST is no longer liable to be registered under section 22 or section 24.
  • Obtain GST Registration

    Every person who is liable to be registered under GST shall obtain the GST Registration

    Filing GST Returns

    Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. The basic features of the returns mechanism in GST include electronic filing of returns, uploading of invoice level information and auto-population of information relating to Input Tax Credit (ITC) from returns of supplier to that of recipient, invoice-level information matching and auto reversal of Input Tax Credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC



    Due Date for filing


    Monthly Statement of Outward supplies of Goods or Services

    10th of the next month


    Monthly Statement of Inward supplies of Goods or Services

    15th of the next month


    Monthly Return for a normal taxpayer

    20th of the next month


    Registered Person other than an ISD, TDS/TCS Taxpayer, Casual Taxable Person and Non-resident Taxpayer

    31st December of next Financial Year


    Taxable Person whose registration has been surrendered or cancelled

    Within three months of the date of cancellation or date of order of cancellation, whichever is later

    Late Fee for Non-Filing Returns

    Every registered persons has to fie periodical returns whether they are doing any bushiness or not. If there is no Taxable supplies / purchases, it is mandatory to file NIL returns as per filing schedule.

    Any registered person who fails to furnish the details of return under GST by due date shall pay a late fee of Rs.100 for every day during which such failure continues subject to a maximum of an amount calculated at quarter percent of his turnover.