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    Unit 2 - Theory

    Uploaded by

    danish rayan

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    © All Rights Reserved
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    Unit 2 - Theory

    Uploaded by

    danish rayan
    3 views5 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views5 pages

    Unit 2 - Theory

    Uploaded by

    danish rayan

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Registration under GST provision and process

    Under the Goods and Services Tax (GST) regime, registration is mandatory for businesses
    exceeding specified turnover limits or engaging in certain activities. GST registration provides a
    unique Goods and Services Tax Identification Number (GSTIN) for businesses, enabling
    compliance with tax regulations, claiming input tax credits, and issuing tax invoices.

    Who Needs to Register for GST?

    1. Businesses with Aggregate Turnover:


    o For services, businesses with an annual turnover exceeding ₹20 lakh (₹10 lakh in
    special category states).
    o For goods, businesses with an annual turnover exceeding ₹40 lakh (₹20 lakh in
    special category states).
    2. Inter-State Suppliers: Businesses supplying goods or services across state lines must
    register for GST, regardless of turnover.
    3. Casual Taxable Person: Individuals occasionally supplying goods/services in different
    states must register.
    4. Non-Resident Taxable Person: Non-residents making taxable supplies in India must
    register.
    5. E-commerce Operators: Entities facilitating online sales or digital services must
    register, irrespective of turnover.
    6. Input Service Distributors (ISD), Agents, Reverse Charge Suppliers, and those
    involved in taxable supply of goods/services also need GST registration.

    Types of GST Registrations

    1. Regular Taxpayer: Standard registration for businesses with continuous taxable supply.
    2. Composition Scheme: For small businesses with turnover up to ₹1.5 crore, allowing a
    lower tax rate with some restrictions.
    3. Casual and Non-Resident Taxable Person: For temporary suppliers in India.
    Documents Required for GST Registration

    1. PAN Card of the business or applicant.


    2. Identity Proof (Aadhar, driving license, or passport) and Photograph.
    3. Address Proof (Electricity bill, rent agreement, NOC from the property owner).
    4. Bank Account Statement or Canceled Cheque.
    5. Business Constitution Proof (Partnership deed, incorporation certificate, or trust deed).
    6. Digital Signature for company or LLP applicants.
    7. Proof of Principal Place of Business: Ownership or rental documents for office
    premises.

    GST Registration Process in India

    The GST registration process is done online on the GST portal (https://www.gst.gov.in/).

    Steps to Register for GST:

    1. Visit the GST Portal: Go to the GST website and select "Register Now" under the
    'Services' > 'Registration' > 'New Registration' option.
    2. Fill Out Part A of the Form:
     Provide your PAN, mobile number, and email. OTP verification will follow.

     Submit these details to receive a Temporary Reference Number (TRN).

    3. Log in with TRN: Use the TRN to log in again and proceed with Part B of the
    registration form.
    4. Fill Out Part B of the Form:
     Provide required details, including business information, authorized signatory,

    business address, and bank account.


     Upload scanned documents in specified formats.

    5. Verification and Submission:


     Verify and sign the application using Digital Signature Certificate (DSC), e-Sign,

    or Electronic Verification Code (EVC).


     Upon successful submission, an Application Reference Number (ARN) will be

    generated.
    6. GST Officer Review: The application is reviewed by a GST officer, who may request
    additional documents.
    7. GSTIN Issuance: Once approved, a unique GSTIN is issued, allowing you to start GST-
    compliant business operations.

    Post-Registration Compliance

     File GST Returns: Regular filing of GST returns is required (monthly, quarterly, or
    annual, depending on turnover and scheme).
     Maintain Records: Proper records of sales, purchases, stock, and invoices must be
    maintained.
     Display GSTIN: Display the GSTIN at the place of business and on invoices.

    Benefits of GST Registration

    1. Legal Recognition: Provides legal recognition for your business.


    2. Input Tax Credit: Registered businesses can claim credits on taxes paid on purchases.
    3. Interstate Business: Allows hassle-free interstate transactions without additional taxes.
    4. Competitive Edge: Builds credibility with customers and suppliers.

    Amendment and Cancellation of GST Registration in India

    Once registered under GST, businesses may need to update or cancel their GST registration due
    to changes in business details or the cessation of operations. The GST portal facilitates these
    processes for registered taxpayers.

    1. Amendment of GST Registration

    A business may need to amend its GST registration due to changes in business structure, contact
    details, business location, or any other significant business information. Amendments can be
    classified into core and non-core amendments.
    Types of Amendments

    1. Core Fields: Changes that impact key details, requiring approval from a GST officer.
     Business Name
     Principal Place of Business or Additional Places of Business
     Addition or Removal of Partners, Directors, Karta, Managing Committee, Trustees,
    or Members
    2. Non-Core Fields: Minor changes that do not require approval and are processed
    automatically.
     Contact information such as email, phone number
     Bank details
     Address of additional place(s) of business (not principal place)

    Process for Amendment of GST Registration

    1. Log in to the GST Portal: Access the portal at https://www.gst.gov.in/ and log in using your
    credentials.
    2. Go to Services > Registration > Amendment of Registration (Non-core fields):
    o For core fields, you may need to select a specific option for core amendments.
    3. Select the Fields to Amend: Choose the fields you need to update and enter the revised details.
    4. Upload Supporting Documents: In case of core amendments, attach the necessary documents,
    such as partnership deed (for partners), board resolution (for directors), or lease agreements (for
    address changes).
    5. Verify with Digital Signature (DSC)/E-sign/EVC: Complete the amendment process using
    digital or electronic verification.
    6. Approval from GST Officer (if applicable): Core amendments require approval. The officer
    may request additional documentation if necessary.

    Timeframe: Core amendments usually take 15 days for approval, while non-core amendments
    are typically updated immediately.

    Cancellation of GST Registration

    Cancellation of GST registration may be necessary if the business ceases operations, the turnover
    no longer meets the GST threshold, or the business merges or is transferred. Both taxpayers and
    GST officers can initiate cancellation.
    Who Can Apply for Cancellation?

    1. Voluntary Cancellation:
    o Businesses that no longer meet turnover requirements.
    o Cessation of business operations.
    o Changes in business structure (like mergers or sale of business).
    2. Cancellation by GST Officer: The officer may cancel a registration due to non-
    compliance, such as:
    o Non-filing of GST returns for a specified period.
    o Involvement in fraud or tax evasion.
    o Registration obtained through fraudulent means.

    Process for Cancellation of GST Registration

    1. Log in to the GST Portal: Access https://www.gst.gov.in/ and log in.


    2. Go to Services > Registration > Application for Cancellation of Registration.
    3. Fill Out the Application Form:
    o Provide a reason for cancellation (such as turnover reduction, merger, or cessation).
    o Submit details about liabilities, unused input tax credits, and other relevant financial
    information.
    4. Upload Required Documents: Attach supporting documents like dissolution certificates, sale
    deeds, or merger agreements if applicable.
    5. Verification: Authenticate using DSC or EVC.
    6. Review by GST Officer: The officer will review the application and may approve or reject it
    based on the information provided. In some cases, a physical verification may be conducted.
    7. Issuance of Order: Upon approval, an order for cancellation is issued, and the GSTIN becomes
    inactive.

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