Tag Archives: GST Registration

GST Returns

Key outcomes of the 28th GST Council meet held on 21st July 2018

GST return filing process

  • Small taxpayers with less than INR 5 crores of turnover can opt to file GST return quarterly against earlier limit of INR 1.5 crores. Quarterly return filing will be similar to the monthly return. However, tax payment would still be monthly, through a challan. Only small taxpayers making B2C supply or making B2B and B2C supply can enroll for quarterly GST return filing. Small taxpayers involved in only B2B supply cannot file quarterly returns under this scheme.
  • Two simplified returns have been designed- “Sugam” and “Sahaj”, where in the first one, report only B2C supplies and the other report both B2B & B2C supplies, respectively.
  • The returns that have to be filed monthly, has also been simplified. The new return is simple with two main tables. One for reporting outward supplies and one for reporting inward supplies for availing input tax credit. The process would be based on Invoice “UPLOAD – LOCK – PAY TAX” for most tax payers.
  • A new facility is proposed by the GSTN wherein NIL return filers (no purchase and no sale) can file Return by just sending an SMS.

Composite dealers

  • Limit not exceeding 10% of the turnover of services rendered in the preceding financial year, or INR 5 lakhs, whichever is higher shall be fixed for opting into the composite scheme. Restaurant services are not be considered for this measure.
  • Threshold limit for opting for composition scheme to be raised to INR 1 crore from existing INR 1.5 crore.

GST registration

  • Taxpayers may opt for multiple registrations within a State / Union territory in respect of multiple places of business located within the same State / Union territory. Earlier it was restricted to multiple businesses in the separate States.
  • Now it becomes mandatory to register under GST for those E-commerce operators who are required to collect tax at source.
  • The threshold exemption limit for GST registration increased to INR 20 lakhs from INR 10 lakhs for 6 States -Taxpayers operating in Sikkim, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Assam & Meghalaya.
  • Registration to remain temporarily suspended for the time cancellation of registration is under process, so that the taxpayer is relieved of continued compliance burden under the law.

 Reverse charge mechanism

  • An amendment is proposed to levy GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons.

E-way bills compliance

  • As the RFID readers or tags will be introduced with Goods and Services Tax Network (GSTN) for transporters in the next 6 months, this is supposed to relieve the transporters from wait at check posts.
  • Standard operating procedure to be adopted to reduce harassment of transporters avoid unnecessary hardship at checkpoints and to give effect to a uniform.

GST migration re-opened

  • Those businesses that had VAT or Service Tax or Central Excise registration were required to migrate and obtain GSTIN by registering under GST. This migration was later closed.
  • The 28th GST Council has now approved the proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.
  • Taxpayers who filed Part- A of form GST REG-26, but not Part- B need to approach the jurisdictional Central Tax / State Tax nodal officers with the necessary details on or before 31st August, 2018 to complete the procedure.
  • All such taxpayers who are now migrating will also be not levied a penalty for late filing GST return. However, such taxpayers will have to file GST return first along with the payment of late fee. On filing the GST return, the GSTN would provide credit by way of a reversal of the amount paid as late fees in the cash ledger under the tax head.

*To encourage the same the late fee payable for delayed filing of return in such cases is decided to be waived.

For exporters

  • Exemption on outward transportation of all goods by air and sea is extended by another year till 30th September, 2019.
  • Services provided in sectors like banking, IT have been provided relief by exempting services supplied by an establishment of a person in India to any establishment of that person outside India (related party).

Other key points

  • Currently, the fiber material is charged at a higher GST rate of 12% as compared to the final apparel that was made out of it attracted only 5%. Due to this, ITC on fiber material was not being able to be utilized. On account of the inverted duty structure that currently prevails in this industry, GST council has proposed for the provision of allowing refund of the accumulated ITC by giving prospective effect to its applicability from 27th July 2018.
  • Registered persons may issue consolidated credit / debit notes in respect of multiple invoices issued in a Financial Year.
  • Hotels to be taxed on actual tariff basis not on declared tariff.

Rate rationalized

  • Common-use foot wares having retail price up to INR 1,000 to be taxed at 5 % for those with price exceeding INR 1000, 18% GST rate will be applicable.
  • Ethanol oil for oil companies to be taxed at 5 per cent in place of 18 % earlier.
  • GST rates for all leather items reduced to 18 per cent from 28 %.
  • GST rates cut to 18% for special purpose vehicles, work truck, trailers.
  • Rates on scents, toilet spray now under 18 % slab.
  • GST on bamboo flooring put under 12 % category.
  • Handicraft items to now be taxed at 12 %.
  • GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps etc. reduced to 12%.
  • GST on imported urea reduced to 5%.
  • Rates for 17 white goods including — Washing machine, Refrigerators, TV, Video games, Vacuum cleaners, Trailers, Juicer mixer, Grinders, Shavers & Hair driers, water cooler, water heaters, Lithium ion batteries, electric iron – reduced by 10 % from 28 % to 18 %.

Exempted items

  • Sanitary napkins that were earlier taxed at 12 % has been put under exempted category.
  • Marbles, stone and wood deities get exemption.
  • Rakhi and fortified milk are also exempted.

New GST rates

blog

Next Council meet is going to be held on 4th August 2018.For further updates stay tuned here!
For any query on this, reach our GST advisors.

GST on Goods Transport Agency

GST for Goods Transport Agency

Transport of goods by road is the most commonly used mode of transportation for businesses which supply goods. This transportation by road is facilitated either by a Goods Transport Agency (GTA) or common carriers such as autorickshaw or courier agencies. In this blog, we will understand what is meant by a Goods Transport Agency (GTA) and the GST rates for transportation service provided by a Goods Transport Agency. This is the first blog in the series wherein, we will understand the various tax provisions with respect to services provided by Goods Transport Agencies and the tax impact on persons taking their services.

GST Registration
GST registration is mandatory in India for entities having more than Rs. 20 lakhs of aggregate turnover in a year (Rs. 10 lakhs in Special Category states). However, some of the supplies provided by a goods transport agency would be liable for GST under reverse charge basis. In a reverse charge transaction, the recipient of the goods is made liable for payment of GST. Hence, while providing services, goods transport agency must be aware of the reverse charge mechanism and raise invoice accordingly.

What is a GTA?

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

This means, while others might also hire out vehicles for goods transportation, only those issuing a consignment note are considered as a GTA. Thus, a consignment note is an essential condition to be considered as a GTA.

What are the services provided by a GTA?

The service includes not only the actual transportation of goods, but other intermediate/ancillary service provided such as-

  • Loading/unloading
  • Packing/ unpacking
  • Trans-shipment
  • Temporary warehousing etc.
  • If these services are included and not provided as independent activities, then they are also covered under GTA.

What will be the rate of Tax in Case of the Goods Transport Agency (GTA Services) under GST Per se?

Looking at the entry no. 3, Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use]. The rate mentioned in the rate schedule is 5% (without ITC)

Entry no. 4 of the rate schedule prescribed says that Services of goods transport agency in relation to transportation of used household goods for personal use. The rate prescribed is 5% even in this case.

Important point to highlight here is that the transporter providing any other services like “Right to use” or “Leasing” of the vehicles, he will have to review the rates separately and not take the 5% as his rate.

This means that generally the rate is 5% for the GTA under GST. The point to be highlighted is that NO ITC is available to the transporter in this case.

Persons Required to Pay GST on Reverse Charge
When taking the services of a goods transport agency, the following types and class of entities would be required to pay GST on reverse charge basis.

  • Factories registered under the Factory Act.
  • Societies registered under the Society Act.
  • Any co-operative society.
  • Any person who is registered under GST.
  • Any Body Corporate (Company or LLP)
  • Any partnership, if registered or not as well as AOP.

If you have any query regarding this Click Here

Document required for gst registration

What is GST Registration?

Every business carrying out a taxable supply of goods or services under GST regime and whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as applicable will be required to register as a normal taxable person. This process is of registration is referred as GST registration.

GST is the beggest tax reform in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to obtain GST registration.

Documents Required For GST Registration

  For Individual:

  • PAN card
  • ID proof and address proof of Individual
  • Photo (JPG – 100 KB)
  • Bank Details – Copy of canceled cheque or first page of Pass Book  or first page of recent bank statement
  • Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc.  also in case the premises is rented, Rent Agreement will be required.

  For One Person Company/ Private Limited Company/ Public Company:

  • Company PAN Card
  • Memorandum of Association (MOA) /Articles of Association (AOA)
  • Registration Certificate/ Incorporation Certificate of the company
  • Bank Details – Copy of canceled cheque or first page of Pass Book  or first page of recent bank statement
  • A copy of the resolution passed by BOD / Managing Committee
  • Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc. also in case the premises is rented, Rent Agreement will be required.
  • Director Related Documents- PAN and ID proof of directors& Photo
  • Proof of Authorized Signatory
  • DIN No of Partners & Digital Signature

For Partnership & Limited Liability Partnership (LLP)

  • Partnership / LLP PAN Card (as the case may be)
  • Partnership Deed/ LLP Agreement
  • DIN No of Partners & Digital Signature (in case of LLP)
  • Bank Details – Copy of canceled cheque or first page of Pass Book or first page of recent bank statement
  • Registered Office Documents- Copy of electricity bill/landline bill, water Bill etc.  also in case the premises is rented, Rent Agreement will be required.
  • Partner’s related Documents- PAN and ID proof of designated partners& Photo
  • Proof of Authorized Signatory

If you have any query regarding this Click Here