GST Registration

GST is the product of the biggest tax reform in India which has tremendously improved ease of doing business and increasing the taxpayer base in India by including millions of small businesses. Tax complexities would be reduced due to the abolishing and subsuming of multiple taxes into a single, simple system.

The new GST regime mandates that all entities involved in buying or selling goods or providing services or both are required to register and obtain GSTIN. Registration is mandatory once the entity crosses a minimum threshold turnover or when an individual starts a new business that is expected to cross the prescribed turnover.

Businesses are required to register for GST if they fall into one of the following criteria.

Aggregate turnover: Any service provider who provides a service value of more than Rs. 20 Lakhs aggregate in a year is required to obtain GST registration. In the special category states, this limit is Rs. 10 lakhs. Any entity engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs is required to obtain GST registration.

Inter-state business: An entity shall register for GST if they supply goods inter state, i.e., from one state to another irrespective of their aggregate turnover. Inter state service providers need to obtain GST registration only if their annual turnover exceeds Rs. 20 lakhs. (In special category states, this limit is Rs. 10 lakhs).

E-commerce platform: Any individual supplying goods or services through an e-commerce platform shall apply for GST registration. The individual shall register irrespective of the turnover. Hence, sellers on Flipkart, Amazon and other e-commerce platforms must obtain registration to commence activity.

Casual taxable persons: Any individual undertaking supply of goods, services seasonally or intermittently through a temporary stall or shop must apply for GST. The individual shall apply irrespective of the annual aggregate turnover.

Voluntary registration: Any entity can obtain GST registration voluntarily. Earlier, any entity who obtained GST voluntarily could not surrender the registration for up to a year. However, after revisions, voluntary GST registration can be surrendered by the applicant at any time.

GST Annual / monthly / Quarterly returns filing

GST LUT (Letter of Undertaking) for exports without making IGST payment.

LUT in GST: Full form/meaning is Letter of Undertaking. It is prescribed to be furnished in the form GST RFD 11 under rule 96 A, whereby the exporter declares that he or she will fulfill all the requirement that is prescribed under GST while exporting without making IGST payment.

GST LUT is to be submitted by all GST registered goods and service exporters. The exporters who have been prosecuted for any offense and the tax evasions exceeding Rs 250 lakhs under CGST Act or the Integrated Goods and Service Act, 2017 or any existing laws are not eligible to file the GST LUT. In such cases, they would have to furnish an Export bond.

Here the motive of the government was to expand the export base by providing reliefs on exports.

Under CGST Rules,2017, any registered person can furnish an Export bond or LUT in GST RFD 11 without paying the integrated tax. They can apply for LUT if:

  1. They intend to supply goods or services to India or overseas or SEZs
  2. Are registered under GST
  3. They wish to supply goods without paying the integrated tax.

Documents Required for LUT :

  1. LUT cover letter – request for acceptance – duly signed by an authorized person
  2. Copy of GST registration
  3. PAN card of the entity
  4. KYC of the authorized person/signatory
  5. GST RFD11 form
  6. Copy of the IEC code
  7. Cancelled Cheque
  8. Authorized letter

GST Temporary  / Casual taxpayer Registration

Casual taxable persons or occasional taxpayers are given special treatment under GST.

The Goods and Service Tax Act defines a casual taxable person as a person who occasionally undertakes transactions that involve the supply of goods or services or both.

Hence, individuals running temporary businesses in fairs or exhibitions or seasonal businesses will need to get casual taxable person GST registration.

Casual taxable person GST registration is necessary irrespective of the annual turnover, and the process must be initiated at least five days before the business undertaking. GST registration application for casual taxable persons can be made using FORM GST REG-01.

Documents required Casual taxpayer registration

  1. Scanned copy of PAN (Indian National)
  2. Scanned copy of Passport (for Foreign Nationals and NRIs)
  3. Scanned copy of Voter’s Id/ Passport/ Driver’s license
  4. Scanned Passport sized photograph.
  5. Mobile Number
  6. Email

GST Registration Cancellation

GST registration can be canceled by the registered person or by the GST officer, or by the registered person’s legal heirs in case of death of the person under GST. GST registration cancellation means that the person will not be registered under GST anymore, and he will not have to pay or collect GST.

GST registration can be canceled by a GST officer or voluntarily by the person registered under GST. The taxpayer will not pay GST anymore if he cancels the GST registration.

If an individual is still carrying out business after surrendering the GST registration, it will be an offense under GST, and heavy penalties are applicable. There will be no requirement to furnish any GST return.

A GST registration can be cancelled by an officer, if:

  1. The registered person under GST does not conduct any business from the declared place of business or
  2. Issues invoice or bill without supply of goods or services violating the GST ACT or GST rules.
  3. If the person having GST registration has not filed GST returns for six months

Before the cancellation of registration, the Officer would issue a notice to the taxpayer whose GST registration is liable to be cancelled, requiring show cause within seven working days from the date of service of such notice.

The registered person can reply to the show cause notice within the prescribed time, or the GST registration can stand cancelled.

Voluntary cancellation by the registered person:

GST registration cancellation can be initiated by the person registered under GST under Section 29 of the CGST Act under the following circumstances:

  1. Discontinuance or closure of a business
  2. Transfer of business, amalgamation, merger, de-merger, lease, or other pertinent reasons.
  3. Change in the constitution of business, which results in a change of PAN.
  4. Turnover reduces below the threshold limit of GST registration.
  5. Death of the sole proprietor
  6. Any other reason, the likes of which must be proved in the application.