Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied on the supply of goods and services. It is a comprehensive, multistage, destination-based tax:
GST is levied on supply of goods, or services or both, except for taxes on the supply of the alcoholic liquor for human consumption.
There are three taxes applicable under this system: CGST, SGST & IGST.
In most cases, the tax structure under the new regime will be as follows:
| Transaction | New Regime |
| Sale within the State | CGST + SGST |
| Sale to another State/Import | IGST |
Any person who is supplying goods or services is liable to pay GST (i.e. Supplier). However, in few exceptional cases the recipient would be liable to pay GST to the Government on reverse charge basis.
For payment of GST, a taxpayer must register himself on the GST portal and obtain GSTIN (Goods and Services Tax Identification Number).
Companies, who have been incorporated through integrated form of incorporation (SPICE+), get their registration number at the time of incorporation itself. Other persons can get their GST registration number by filing an online form at the government portal.
A person liable to be registered has to apply for registration in each state from where he makes or intends to make outward supplies under GST.
The government has set up the basic exemption limit for small suppliers of goods and services.
For sale of Goods, threshold limit is Rs. 40 Lakh for Normal Category States and Rs. 20 Lakh for Special Category States like Northeastern States etc.
Person providing services need to register if their aggregate turnover exceeds Rs 20 Lakh in any of the States.
Yes. The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 1.5 Crore (Rs. 75 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. A composition dealer can also supply services to an extent of 10% of turnover, or `5 Lakhs, whichever is higher. A composition dealer cannot take credit on his input supplies.
A Non Resident Indian seeking to invest and do business in India shall be required to obtain GST Registration in India within 30 days of commencement of business. Depending upon the kind of supply of goods or services or both and the presence of the entity in India, GST registration shall be obtained on behalf of the entity by its Authorised Signatory or Authorised Representative, as the case may be. For more details about GST registration for Non- Resident Supplying Online Services, click here.
Yes, GSTIN is mandatory for filing Bill of Entry in case of import of goods or import of services, in other cases, by importers as IGST is to be paid on imports and input tax credit can be availed for IGST paid. In addition to GSTIN, the requirement for PAN of the importer and IE Code for the importer would also continue.
Yes, a non-resident supplier located in non-taxable territory shall be required to obtain GST Registration for providing OIDAR services in India. In case the online recipient is a registered business entity, IGST shall be payable by the resident recipient under reverse charge. In other case if the recipient is an individual consumer, IGST shall be payable by the supplier outside India. For more details about GST Registration and related aspect for providing OIDAR services, click here.
Notification No.12/2017– dated 28th June 2017, issued by CBIC, exempts services provided by entity registered under Section 12AA of the Income-tax Act, 1961 by way of charitable activities from whole of GST. However, in case the entity is engaged in supplying both taxable and exempt supplies, it shall require registration under GST depending on the prescribed turnover of supply. Supply in such case shall be on reverse charge basis as per the Notification No. 13/2017 of CBIC.
A taxable person may opt to cancel the GST registration in case the business is discontinued, transferred, amalgamated or due to any other change in the constitution of the business. For more details about cancellation of GST registration in form GST REG 16, you may refer to the CBIC circular issued on the same. The amount in cash ledger will get refunded but no amount shall get refunded for credit lying with the taxpayer on the GST portal during the course of liquidation whether voluntary or otherwise.
No. A registered person will have to approach only one tax authority for all practical purposes. One person can discharge all the functions under CGST, SGST and IGST act.
Input Tax Credit is the credit of taxes paid by a supplier on inward supplies, i.e, purchases made in the course of furtherance of business which can be set off against the taxes paid in the outward supplies, i.e, sales in the business.
No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take credit on his input supplies.
A GST return is a document containing details of all income/sales and/or expense/purchase which a taxpayer is required to file with the tax administrative authorities. All registered businesses have to file monthly or quarterly and an annual GST return based on the type of business. All these GSTR filings are done online on the GST portal.
Only the part of a Director’s remuneration which is declared separately as ‘other than salaries’ in the Company’s accounts and is subjected to TDS under Section 194J of the IT Act as Fees for professional or Technical Servicesand also is outside the scope of exempt supplies under Schedule III of the CGST Act, shall be taxable under GST. For more clarification on taxability under GST on director’s remuneration, click here.
Few of the services provided by a GST professional includes-
A GST professional will always keep you informed of any new legislation or regulations enacted by the government that you may need to take care of in the various operational aspects of your business via invoicing, analysis and advisory on taxation aspects of transactions, input tax credit, goods movement, etc. Besides filing periodical returns, GST Professionals update the clients on amendments under GST laws so that they comply with the requirements of the amended laws on time to avoid any penal or other consequences of non-compliance.
To claim refund, a taxpayer is required to fill an online Refund Pre-Application giving details about nature of business, Aadhaar Number, Income Tax details, expenditure and investment etc. For more details on this behalf, please click here. You may also raise your query on any related aspect under GST at the Central Board of Indirect Taxes and Customs (CBIC) Grievance Redressal portal.
In accordance with the provisions of the IBC and various legal pronouncements on the issue, no coercive action can be taken against the corporate debtor with respect to the dues for period prior to insolvency commencement date. Also, no legal requirement under GST is required to be complied with by the IRP/RP for dues during the pre-CIRP period. For more clarification about other GST compliances of companies under IBC, 2016, you may refer to the Circular by the CBIC issued for the same.
