Juraz – Enhance Your Commerce Skills

INCOME TAX AND GST

Module IV
GST registration
GST registration means a process by which a tax payer gets himself
registered under GST. After registration tax payer obtain a unique
identification code from the GST authority.
Benefits of registration under GST Act
 Legal recognition as supplier of goods or services or both.
 Proper utilization of input tax paid.
 Helpful to gain customer trust.
 Legal compulsion to keep required books and records.
 Eligible to participate in government bids or contracts.
 Eligible to avail privileges under GST and other law.
 Eligible to collect tax from persons whom supply is made.
Persons liable for registration under CGST Act
1. Every supplier whose aggregate turnover in financial year exceeds Rs
20 Lakhs.
2. Every person who is registered under an existing law.
3. When a business carried on by a taxable person is transferred the
transferee or successes is liable to register.
Persons not liable for registration under CGST Act
1. Person exclusively engaged in the business of supplying goods or
services that are not liable to tax.
2. Person exclusively engaged in the business of supplying goods or
services that are wholly exempt from tax.
3. Agriculturist to the extent of supply of produce out of cultivation of
land.
4. Any other persons exempted by govt asper council recommendation.
Compulsory registration
It is the registration to be done by the suppliers who comes under the
categories mentioned in the GST Act.
Compulsory registration requirements
1. Persons making any interstate taxable supply
2. Casual taxable persons making taxable supply
3. Persons who to pay tax under reverse charge
4. Non-resident taxable person making taxable supply
5. Input service distributor
6. Every electronic commerce operator
7. Persons who make taxable supply on behalf of other taxable person
Voluntary registration
Voluntary registration is the self-registration by the suppliers
irrespective of threshold limit given by GST Act.
Advantages of voluntary registration under GST
1. Helps to attract trust of customers.
2. Easy to make interstate sales.
3. Opportunity for business development.
4. Legal right to collect tax.
5. Legal right to issue tax invoice.
6. Enjoy benefits of input tax credit on inward supplies.
Suo moto registration
In connection with any survey, inspection or enquiry under the act, the
proper officer finds that a person liable to be registered under the act
has failed to do so. Such officer may issue registration to said person on
a temporary basis and issue an order in the form of GST-REG 12.
Deemed registration
Under GST law there is a provision of deemed approval of fresh
registration and amendment of registration incase the departmental
officer fails to take any action on the tax payers application within the
prescribed period.
Phases of GST registration/ steps involved in GST registration
 Fill part A of form GST REG-01
 Submit PAN, E-mail ID, and mobile number
 Online verification of PAN mail ID, and mobile number through OTP.
 Sending temporary application reference number
 Completing part-B GST-01 after verifying reference number
 Attaching supporting documents
 Submission of part B of form GST REG-01
 Issue of acknowledgement in form GST REG-02
 Issue of certificate of registration in form of GST REG-06 within 3
 days from the date of submission of application
 Response against form GST REG-033 in form GST REG-06 within 7
days from the date of issue of form GST REG-03
Cancellation/ suspension of GST registration
The proper officer may cancel GST registration in the following cases
 In the case of discontinuation or transfer of business.
 Change in the constitution of business.
 Cancellation of registration shall not affect liability of payment of
tax.
 The cancellation of registration under the state goods and services
tax Act, as the case may be, shall be deemed to be cancellation of
registration under CGST Act.
 Every registered person whose registration is cancelled shall pay an
amount by way of electronic payment.
Revocation of cancellation of registration
 Revocation of cancellation can be done in the prescribed manner
within 30 days from date of cancellation order.
 The proper officer can revoke the cancellation of registration within
another period of 30 days from date of application.
 Revocation officer has the right to reject the revocation if the
requirements are not met.
GST registration certificate
It is a valid document for proof of being registered under the GST law in
India.
Tax invoice
It is a document that shall be issued by a registered person on making
taxable supplies. It should include description of the goods, quantity,
value and tax charged on the supply.
Importance of tax invoice
1. It is an evidence for payment of the value of the goods or services.
2. It is important for determination of address of delivery.
3. For determination of continuous journey of goods and services.
4. For taking input tax credit.
5. For determination of value of goods or services.
Content of tax invoice
 Name and address of registered supplier
 GSTIN of registered supplier
 Consecutive serial number
 Date of issue of tax invoice
 Name, address of recipient
 GSTIN of recipient
 HSN code for goods or services
 Description of goods or services supplied
 Quantity of goods
 Total value of goods or services
 Taxable value of supply of goods
 Applicable rate of tax
 Amount of tax charged
 Signature of the supplier
Types of tax invoices
1. Bill of supply
2. Credit note
3. Debit note
4. Aggregate invoice
Bill of supply
It is a document similar to tax invoice but does not contain any tax
amount as the seller is not eligible to collect tax on the supplies made.
Invoice-cum bill of supply
It is a document provided by registered person when they are supplying
taxable as well as exempted good or services to unregistered person.
Receipt voucher
It is the voucher issued by a registered person whenever he receives an
advance payment with respect to any supply of goods or services or
both.
Refund voucher
It is the voucher issued by a registered person, when he received
advance payment and issued receipt voucher but no supply is made or
tax invoice is issued.
Credit note
A credit note is a document issued by the supplier in following cases
 Supplies are returned or found to be deficient by the recipient.
 Decrease in taxable value
 Decrease in GST charged in invoice
Debit note
It is a document issued by the supplier in following cases
 Increase in taxable value
 Increase in GST charged in invoice
Contents of a credit note or debit note
1. Name, address and GSTIN of supplier
2. Nature of the document
3. Consecutive serial number not exceeding 16 characters
4. Date of the issue of the document
5. Name, address and GSTIN of recipient
6. Serial number and date of the corresponding tax invoice
7. Value of taxable supply of goods or services
8. Rate of tax and amount of tax credited/debited
9. Signature of supplier
Difference between Debit note and credit note
Debit Note Credit Note
It represents positive amount It represents credit amount
It is exchanged for credit note It is exchanged for debit note
The effect is minimization in The effect is minimization in
accounts receivable. accounts payable.
Tax return under GST
A tax return is a form furnished electronically or manually with any of
the tax authorities that reports income, expenses and other relevant
information.
Modes of furnishing of GST returns
1. Through online portal
2. Through offline utilities provided by GSTN
3. Through GST Suvidha providers
Types of GST returns
 GSTR-1 (Return of outward supplies)
 It is a monthly return.
 Due date is 10th of the next month.
 Applicable to normal tax payers.
 GSTR 2 ( Return of inward supplies)
 It is a monthly return.
 Due date is 15th of next month.
 Applicable to normal tax payers.
 GSTR 3B (Summary of inward and outward supplies)
 It is a monthly return.
 It show cases the summary of GST liabilities of the tax payer.
 Due date is 20th of next month.
 Applicable to registered persons.
 GSTR 4 ( Return by composition tax payer)
 It is a quarterly return.
 Due date is 18th of month succeeding quarter.
 Applicable to composition tax payer.
 GSTR 5 ( Return by non-resident tax payer)
 It is a monthly return.
 Due date is 20th of next month or within 7 days after registration
expiry.
 Applicable to non-resident tax payers.
 GSTR 6 (Return by input service distributes)
 It is a monthly return.
 Due date is 13th of the next month.
 Applicable to input service distributor
 GSTR 7(Return of tax deducted at source)
 It is a monthly return.
 Due date is 10th of the next month.
 Applicable to tax deductor.
 GSTR 8 (Return statement of collection of tax at source)
 It is a monthly return.
 Due date is 10th of the next month.
 Applicable to e-commerce operator.
 GSTR 9 (Annual return)
 It is an annual return.
 Due date is 31st December of next financial year.
 Applicable to normal tax payer.
 GSTR 9B
 It is an annual return
 It is to be filed by an every ecommerce operator who is required to
collect tax at source under sec 52 (5) of the CGST Act.
 GSTR 10 (Final return)
 It is filed once on cancellation of registration.
 Due date is within 3 months from the date of cancellation of
registration.
 Applicable to registered person whose registration has been
cancelled.
First Return
It is the return filed by every tax registered person for the period
between the dates on which he became liable to get registration till the
date on which the registration has been granted.
Annual Return
It is the return filed by every tax registered person annually for every
financial year in the prescribed manner.
Final Return
It is the return to be furnished by every registered person whose
registration has been cancelled. It is to be done within three months of
the date of cancellation.
GST Practitioner
GST practitioner means any person who has been approved u/s 48 to
act as such practitioner. He assist and facilitate compliance under GST
system.
Role of GST practitioner
 Furnish the details of outward and inward supplies.
 Furnish monthly, quarterly, annual or final return.
 Make deposit for credit into the electronic cash ledger.
 File a claim for refund.
 File an application for amendment of registration.
 Furnish information for generation of e-way bill.
 Furnish details of challan
 File an application for amendment of enrollment.
Responsibilities of a GST Practitioner
 Take authorization from a registered person.
 Prepare statements with due diligence.
 Fix his digital signature on all documents prepared by him.
 Appear as authorized representative before any officer.
 Before furnishing any document, ensure the facts are true.
Prepared by
RAHUL MURALI
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