Any firm doing a taxable supply of goods/services after GST Bill implementation and whose Annual turnover surpasses the limit of INR 10 lakh or 20 Lakh (as applicable) will be obliged to enroll as a regular taxable person. This process is of enrollment is called GST registration.
GST Registration is Important. Why?????
GST registration is crucial as it will let you avail several advantages that are available with GST implementation. Input tax credit (ITC) is one of such perks. GST is the combination of many old taxes as one, and therefore the taxes cascade that was prevailing will no longer be a problem. Also, You would not want any interference of the Tax authorities in your life.
Format for GST identification number ⇓⇓⇓
GST panel believes that round about 80 lakh tax payers will migrate from different platform to GST. All of them will get an individual GST Identification Number.
An occasional taxpayer will be the person who sometimes supplies goods in a region where GST is working, but the person does not have a permanent place of trade. Such a person will need to do a casual registration.
Example: A trader who has a business in Himachal Pradesh provides taxable advising service in Chandigarh where he has no permanent place of trade would be considered as a casual taxable person in Himachal Pradesh.
Composition Dealer Registration:
There is a scheme for small firms having an annual turnover >> INR 75 lakhs. Hence they can go for Composition scheme. In this plan, the tax will be at the low rate of 1% or 2% (manufacturers) cGST and sGST each.
They will have to keep less detailed accounts and file only one annual return ( not three monthly returns).
Though, they cannot issue invoices, Which means they have to pay the tax out of their pocket (not customers). The benefit of Input tax credit (ITC) will not be for them.
Composition duty scheme is only for small firms. It is not available to interstate dealers or online traders.
When annual turnover of firm surpasses INR 20 lakhs (10 lakhs for the NE States), GST is applicable.
Migration from Old system to GST:
GST will now cover all Central Excise and Service Tax & VAT dealers. A Provisional ID will be provided to dealers along with Password by CBEC (central board of excise and customs).
To get a temporary ID, the trader should have valid PAN associated with the registration. One may fail to get Provisional ID if:
The PAN number linked with the enrollment is not correct.
The registration of PAN is with a State authority only, and Provisional ID has been furnish by the same Tax administration.
There are various certifications on the same PAN number in a State. In that case, they will issue only one ID for 1st registration in the alphabetic order, and also, fulfillment of both of the above provisions is required.
Use the given Provisional ID and Password to sign in to GST official website, where you have to fill and submit the Form 20 along with required records.
Punishments for Non-Registered traders Under GST Bill:
An offender not paying tax has to pay a penalty of 10% of the tax payable due of the minimum of INR 10k. If it is intentional fraud, the punishment will be almost 100% of the tax amount. Though, for other unintentional flaws, the fine is 10% of the tax amount.
Multiple Enrollments for GST law:
A trader with trades in many states may get a separate certification for each business.
PAN card is compulsory to apply for GST registration (NRI or non-resident person can get GST registration using other listed documents)
Registration, if rejected for CGST/SGST Act, shall also stand dismissed for the bill.