UNIT-5

GST PROCEDURES

Registration is the most fundamental requirement for the identification of taxpayers to ensure
compliance and to obtain a unique registration number for the purpose of collecting tax on
behalf of the Government and to avail ITC accrued on the inward supplies.
BENEFITS OF REGISTRATION
Registration will confer the following advantages to a taxpayer:
• He is legally recognized as supplier of goods or services.
• He is legally authorized to collect taxes from his customers and pass on the credit of the
taxes paid on the goods or services supplied to the purchasers/recipients. • He can claim
Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on
supply of goods or services.
• Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
•
THRESHOLD LIMIT FOR REGISTRATION
Registration is mandatory when Aggregate Turnover in a Financial Year exceeds threshold
limit.
(Aggregate Turnover = Value of Taxable of Supplies + Exempt Supplies + Inter
State Supplies + Exports of both Goods and Services of persons having the same PAN
calculated on all India basis less tax under IGST, CGST, SGST and Cess),
Threshold limits of GST
For supply of goods in normal states 40 lakhs
For supply of services in normal states 20 lakhs
For supply of goods in special category states 20 lakhs
Supply of services in special category states 10 lakhs

Exemption from registration

Irrespective of the turnover, the following dealers are exempted fromRegistration:
• Agriculturist for the purpose of Agriculture
• Supply of exclusively exempted goods
 TYPES OF REGISTRATION :
• Compulsory registration
• Voluntary registration
• Suo-moto registration
• Deemed registration

Voluntary Registration
A person not liable to be registered under the Act, may get himself registeredvoluntarily to avail ITC and
pass on the ITC to the recipient.
Compulsory Registration
The following class of persons shall compulsorily register. irrespective oftheir turnover
a) Persons making Inter-State Taxable supply ;
b) Casual Taxable person;
c) Persons who are required to pay tax under reverse charge;
d) Persons who are required to pay tax as e-commerce operators;
e) Non-resident taxable person;
f) Persons required to deduct tax as TDS (Government Agencies,Department etc..,)
g) Persons required to collect tax as TCS (electronic Commerce operator)

Casual taxable person

A Casual taxable person is one who has a registered business in some State in India, but wants to effect
supplies in some other State in which he is nothaving any fixed place of business. Such person needs to
register in the Statefrom where he seeks to supply as a Casual taxable person.
Nonresident taxable person
A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect
taxable supplies from any State in India, and for that he needs GST registration. GST law prescribes
special procedure for registration, as also for extension of the operation period of such Casualor Non-
Resident taxable persons. They have to apply for registration at least five days in advance before
making any supply. Also, registration is granted to them or period of operation is extended only after
they make advance deposit of the estimated tax liability.

Other Notable Points Regarding Registration

A person with multiple business verticals in a state will need to obtain a separate registration
for each business vertical. PAN is mandatory to apply for GST registration (except for non-
resident person who can get GSTregistration on the basis of other documents). A registration
which has been rejected under CGST Act/SGST Act shall also stand rejected for the purpose
of SGST/CGST Act.
Suo -moto registration – when a person liable to be registered under GST fails to obtain
registration, tax officials working in enforcement wings of respective state or central tax
department can initiate the process of generation and allotment of temporary ID, such
process of registration is called as Suo- moto registration.
 Deemed registration
It means if the supplier takes a registration under one act, it is deemed that the registration
has also been granted under other act. And there is no need totake separate registration under
CGST and SGST .

 GST REGISTRATION FORMS AND PROCESS

GST registration process will be online through a portal maintained by Central Government of
India. Govt. will also appoint GSPs (GST Suvidha Providers) to help businesses with the registration
process. Based on the information provided by GSTN, registration process looks like this:

1. The applicant will need to submit his PAN, mobile number and email address in Part A of Form GST
REG–01 on the GSTN portal or through Facilitation center (notified by board or commissioner).
2. The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time
password (OTP). Once the verification is complete, applicant will receive an application reference
number on the registered mobile number and via E-mail. An acknowledgement should be issued to the
applicant in FORM GST REG-02 electronically.
3. Applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then
the form can be submitted after attaching required documents.
4. If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in
Form GST REG-04 with required information within 7 working days from the date of receipt of Form
GST REG-03
5. If you have provided all required information via Form GST REG-01 or Form GST REG-04, the
registration certificate in Form GST REG –06 for the principal place of business as well as for every
additional place of business will be issued to the applicant. If the person has multiple business verticals
within a state he can file a separate application for the registrationin Form GST REG-01 for each business
verticals.
If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-
05. The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST
REG – 07 for registration. If he is no longer liable to deduct or collect tax at source then the officer may
cancel and communicate the cancel of registration.
Documents required for GST registration:
• PAN card of the Company
• Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of
Association (AOA), certificate ofincorporation.
• Details and proof of place of business like rent agreement or electricity bill
• Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC
code and bank branch details
• Authorized signatory like List of partners with their identity and address proof in case of
partnership firm or List of directors withtheir identity and address proof in case of company.

TAX INVOICE
A registered person supplying taxable goods shall, before or at the time of,—
(a) removal of goods for supply to the recipient, where the supply involvesmovement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice
showing the description, quantity and value of goods, the tax charged thereon and such other particulars as
may be prescribed:
A registered person supplying taxable services shall, before or after the provision of service but
within a prescribed period, issue a tax invoice, showing the description, value, tax charged
thereon and such other particulars as may be prescribed:

 A registered person supplying exempted goods or services or both or paying tax under the
provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such
particulars and in such manner as may be prescribed
 As per Rule 47 of CGST Rules its provided that invoice should be issued within 30 days from the
date of supply of service. For insurer or a banking company or a financial institution, including a
non-banking financial company, this period is 45days

Levy and collection of GST:

ACCOUNTING RECORDS FOR GST

Section 35 of the CGST Act, 2017 provides that 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—
a) production or manufacture of goods;
b) inward and outward supply of goods or services or both;
c) stock of goods;
d) input tax credit availed;
e) output tax payable and paid; and
f) such other particulars as may be prescribed.
In addition, the rules also provide that the registered person shall keep and maintainrecords of
a) goods or services imported or exported; or
b) supplies attracting payment of tax on reverse charge along with relevant documents, including
invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment
vouchers, refund vouchers and e-way bills.
 In case, more than one place of business is specified in the certificate of registration, the
accounts relating to each place of business shall be kept at such places of business. A
registered person may keep and maintain such accounts and other particulars in electronic
form in such manner as may be prescribed.
Period for preservation of accounts:
• All accounts maintained together with all invoices, bills of supply, credit and debit notes, and
delivery challans relating to stocks, deliveries, inward supply and outward supply shall be preserved
for seventy-two months (six years) from the due date of furnishing of annual return for the year
pertaining to such accounts and records and shall be kept at every related place of business
mentioned in the certificate of registration.
 Where the accounts and records are stored electronically by any registered person,he shall, on
demand, provide the details of such files, passwords of such files andexplanation for codes used,
where necessary, for access and any other informationwhich is required for such access along with
a sample copy in print form of the information stored in such files.
 Every person engaged in the business of transporting goods shall maintain recordsof goods
transported, delivered and goods stored in transit by him and for each ofhis branches. Every owner
or operator of a warehouse or godown shall maintain books of accounts, with respect to the period
for which particular goods remain inthe warehouse, including the particulars relating to dispatch,
movement, receipt, and disposal of such goods.
 Return- Return is a statement of information furnished by the taxpayer to taxadministrators
at regular intervals. A return is a document containing details of income which a taxpayer is
required to file with the tax administrative authorities. This is used by tax authorities to
calculate tax liability.
 GSTR-1 Return for outward supplies (Section 37):
GSTR-1 return form has to be filed by a registered taxable supplier with details ofthe outward
supplies of goods and services. This form is filled by the supplier. GSTR-1 is to befilled by all
taxpayers including casual tax payer except the following persons:
i. Input Service Distributor (ISD)
ii. Non-Resident taxable person
iii. Composite Tax payer
iv. Person Deducting Tax at Source (TDS)
v. Person Collecting Tax at Source (TCS)
vi. A supplier of online Information and Database Access or Retrieval (OIDAR)Services
While filing the GSTR-1 invoices has to be uploaded depending upon supply is madeto registered
person (B2B supply) or unregistered person (B2C supply). B2B Supply: B2B supplymeans business to
business transactions, where the recipient is also a registered person, hence he can take ITC. B2C
Supply: B2B supply means business to consumer transaction, where recipient is a consumer or
unregistered person, hence he cannot take ITC.

Contents of GSTR-1:
1. GSTIN: Goods and Services Taxpayer Identification Number.
2. Name of the registered person.
3. Aggregate Turnover in the previous Year
6. Zero-rated supplies and deemed exports.
7. Taxable outward supplies to consumer (B2C) where invoice value is less than 2.5lakh.
8. Nil-rated, exempt and non-GST outward supplies.
9. Amendments to taxable outward supplies to unregistered persons furnished onreturns for
earlier tax periods.
10. Consolidated Statement of Advances Received or adjusted in the current taxperiod, plus
amendments from earlier tax periods.
11. HSN-wise summary of outward supplies: This section requires a registereddealer to
provide
HSN wise summary of goods sold.
12. Documents issued during the tax period: This head will include details of allinvoices issues
in a tax period, ny kind of revised invoice, debit notes, credit notes, etc
GSTR-1 has to be filed by 10th of the following month.
  GSTR-2 Return for inward supplies (Section 38):
GSTR-2 return form has to be filed by a registered taxable recipient with details ofthe inward
supplies of goods and services. GSTR-2 is to be filled by all taxpayers including casual tax payer
except the following persons:
i. Input Service Distributor (ISD)
ii. Non-Resident taxable person
iii. Composite Tax payer
iv. Person Deducting Tax at Source (TDS)
v. Person Collecting Tax at Source (TCS)
vi. A supplier of online Information and Database Access or Retrieval (OIDAR)Services

Contents of GSTR-2:
1. GSTIN
2. Name of the registered person
3. Inward supplies received from a registered person other than the suppliesattracting reverse
Charge
4. Inward supplies on which tax is to be paid on reverse charge
5. Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry
6. Amendments to details of inward supplies furnished in returns for earlier taxperiods in points
3, 4 and 5 including debit notes or credit notes issued.
7. Supplies received from composition taxable person and other exempt or nil rated or Non GST
Supplies received.
8. ISD credit received
9. TDS and TCS credit received
10. Consolidated Statement of Advances paid or Advance adjusted on account ofreceipt of supply
11. Input Tax Credit Reversal or Reclaim
12. Addition and reduction of amount in output tax for mismatch and other reasons
13. HSN summary of inward supplies
GSTR-2 has to be filed by 15th of the following month.

 GSTR-3 Monthly returns (Section 39):

GSTR-3 return form has to be filed by a registered taxpayer with details that are automatically
populated by from GSTR-1 and GSTR-2 returns forms. The taxpayer has to verify and make
modifications, if any. GSTR-3 return form will contain the following details:
a) Details about Input Tax Credit, liability, and cash ledger.
b) Details of tax paid under CGST, SGST, and IGST.
c) Claim a refund of excess payment or request to carry forward the credit.
GSTR-3 has to be filed by 20th of the following month.
  GSTR-4 Return for compounding taxable person:
GSTR-4 return form has to be filed by taxpayers who have opted for the Composition Scheme.
Taxpayers with small business or a turnover of up to Rs.75 lakh can opt for the Composition
Scheme wherein he or she have to pay tax at afixed rate based on the type of business. Taxpayers
under this scheme will not have input tax credit facility. GSTR-4 quarterly return form will contain
the following details:
a) The total value of consolidated supply made during the period of return.
b) Details of tax paid.
c) Invoice-level purchase information.
GSTR-4 has to be filed by 18th of the following month.

 GSTR-5 Return for Non-Resident foreign taxable person:

GSTR-5 return form has to be filed by all registered non-resident taxpayers. Thisform will
contain the following:
a) Name and address of the taxpayer, GSTIN, and period of return.
b) Details of outward supplies and inward supplies.
c) Details of goods imported, any amendments in goods imported during theprevious tax
periods.
d) Import of services, amendments in import of servicesAND E
e) Details of credit or debit notes, closing stock of goods, and refund claimed fromcash ledger.
GSTR-5 has to be filed by 20th of the following month.

 GSTR-6 Return for Input Service Distributor:

GSTR-6 return form has to be filed by all taxpayers who are registered as an InputService
Distributor. This form will contain the following:
a) Name and address of the taxpayer, GSTIN, and period of return.
b) Details of input credit distributed.
c) Supplies received from registered persons.
d) The amount of input credit availed under the current tax period.
e) Details of inward supplies will be auto-populated from GSTR-1 and GSTR-5return forms.
f) Details of the receiver of input credit corresponding to his or her GSTIN.
g) Details of credit or debit notes.
h) Input tax credit received, input tax credit reverted, and input tax credit distributedas SGST,
CGST, and IGST.
GSTR-6 has to be filed by 13th of the following month.
  GSTR-7 Return for Authorities Deducting Tax at Source:
GSTR-7 return form has to be filed by all registered taxpayers who are required to deduct tax at
source under the GST rule. This form will contain the following:
a) Name and address of the taxpayer, GSTIN, and period of return.
b) TDS details and amendments in invoice amount, TDS amount or contract details.
c) TDS liability will be auto-populated. Details of fees for late filing of return and interest on
delayed payment of TDS.
d) Refund received from Electronic Cash Ledger will be auto-populated.
GSTR-7 has to be filed by 10th of the following month.

 GSTR-8 Details of supplies effected through e-commerce operator and the amount of
tax
collected: GSTR-8 return form has to be filed by all e-Commerce operators who are required to
collect tax at source under the GST rule. details include:
a) Name and address of the taxpayer, GSTIN, and period of return.
b) Details of supplies made to registered taxable person and amendments, if any.
c) Details of supplies made to unregistered persons.
d) Details of Tax Collected at Source.
e) TDS liability will be auto-populated. Details of fees for late filing of return andinterest on
delayed payment of TDS.GSTR-8 has to be filed by 10th of the following month.

 GSTR-9 Annual Returns:

GSTR-9 return form is filed by normal taxpayers with details of all income andexpenditure for
the year. This detail will be regrouped in accordance with the monthly returns. The taxpayer
will have the opportunity to make modifications inthe information provided if required.
Contents of GSTR-9:
1. GSTIN
2. Legal name of registered person
3. Date of statutory audit
4. Auditors
5. Details of expenditure
6. Details of income
7. Return reconciliation statement
8. Profit and Loss statement
GSTR-9 has to be filed by 31st December of the following financial year along with the audited
copies of the annual accounts.
  GSTR-10 Final returns:
GSTR-10 return form has to be filed by any taxpayer who opts for cancellation ofGST registration.
This form will contain the following:
a) Application Reference Number (ARN).
b) Date of cancellation of GST registration.
c) Unique ID of cancellation order.
d) Date of cancellation order.
e) Details of closing stock including amount of tax payable on closing stock.
GSTR-10 final return form has to be filed within 3 months of the date of cancellation or date of
cancellation order, whichever is later.

 GSTR- 11 Details of Inward supplies:

GSTR-11 return form has to be filed by everyone who has been issued a UniqueIdentity Number
(UIN) and claims a refund of the taxes paid on inward supplies. This form will contain the
following details:
a) Name of the government entity, UIN, and period of return.
b) All inward purchases from GST registered supplier will be auto-populated. Based on the above
mentioned details, the tax refund will be made. GSTR-11 formhas to be
filed on 28th of the month, following the month for which supply was received.
 Accounts, And Audit under GST. :

 Every registered person is required to keep accounting books up to 72 months(6 years) the
due date of filing annual return for a particular year.
 For example, for the financial year 2017-18, accounting records must be kept up to
December, 2024. Reason being 72 months from due date of filing the annual returns
(December 31, 2018 in this example) will end on December 2024.
 Audit limit for audit under GST is Rs. 2 crore (20,000,000), every registered person whose
turnover exceeds prescribed limit should get his accounts audited by a Chartered Accountant
(CA) or a Cost Accountant.
 Who Needs To Maintain?
Section 35 of the CGST Act provides that regardless of whether the following persons are registered
or not, each of them are liable to maintain accounts and records under GST. These include:
 Owner
 Operator of the warehouse or godown
 Transporter

Registered taxpayers also need to keep a record with regards to the:

 Amount of tax payable
 Tax collected
 The tax Paid
 Amount of Input Tax
 Input Tax Credit availed
 Register of Tax Invoice
 Debit Notes, Credit Notes, Delivery Challan issued or received during the tax period
 Details of Suppliers, Customers and Warehouse
 The registered taxpayers also need to keep records of:
 Names and addresses of the vendors from whom goods or services are received
 Addresses and names of customers to whom goods or services are supplied
 Address of the premises where goods are stored including the goods stored during transit together
with the information of stock stored in such a premise
 Details of Goods Produced, Registered taxpayers producing goods must maintain accounts in
respect of such a production month by month.
  Features of GST in Tally Package
Tally's GST software in India handles all your GST billing needs. You can generate a range of
invoices, from simple invoices to invoices with multiple items and multiple tax rates. You can also
manage advance receipts, reverse charge scenarios, branch transfers, bill of supply, export invoices,
input tax credit and other adjustments - all by using Tally's GST billing software. Here are some of the
featuresof Tally GST software:

• GST Invoicing: Now easily generate digitally signed GST-compliant tax invoices, bill of
supply and much more with Tally and stay compliant with thelatest regulation.
• e-Invoice and e-way bills: Generating e-invoices and e-way bills had never been this easy.
With Tally, a fully connected solution, you can simplify your e-invoicing, and the e-way bill
needs seamlessly.
• Auto-filled GSTR-3B and GSTR-1: one-time return filing with auto-filled in GSTR-3B and
GSTR-1 makes it all the more simple. You can export the return data in multiple formats.
For e.g. GST Return data in JSON and MS- Excel.
• Accurate Return filling: With the built-in intelligence of Tally, you can rest assured that
your GST return filing is accurate. Tally's prevention-detection- correction mechanism
ensures that your GST returns are error-free.
• Composition Scheme: Manage composition scheme from generating bill of supply invoices
to filing CMP-08 returns.
• Returns in Excel file: Export the auto-filled GST returns in excel format. You can export
the return data in multiple formats, for e.g. GST Return data in MS-Excel.
• Manage all types of GST transactions: Easily manage different GST transactions such as
reverse charge transactions, imports, advance receipts, SEZ, and much more.
• Online business reports: Stay on top of your business with quick access to business reports
from anywhere, using any device at any time.
• Business reporting: it offers a wide range of reports that you can customize as per your
need and get crucial insights into your business.