Indian GST Registration and Compliances

REGISTRATION AND COMPLIANCE UNDER GST

GOODS AND SERVICE TAX (GST)

BY CA ASHISH GARGB.COM (H), FCA, LL.B.

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REGISTRATION AND COMPLIANCES UNDER GST

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GST is the most discussed topic in India nowadays and is also a main cause of worry for every

businessman. Every businessman is worried about his fate after implementation of GST in India

as what would be the registration process, what will be the compliance process, what shall be the

payment structure etc.

This article comprises of basic compliances which every assessee shall be liable to comply with

and in case, it defaults in complying with the same, he shall be subject to penalty and interest.

Liability to take RegistrationParticulars Exemption

LimitRemarks

Supplier having

aggregate turnover

above specified limit

a)In case of North

Eastern States and

hill states

b)States other than

(a)

Rs. 10 lakhs

Rs. 20 lakhs

a) Aggregate turnover shall include total turnover from all

states;

b) If a person is engaged in supply of both exempted/ non

taxable/ export goods/ services and taxable goods/

services, then value of both shall be considered for

computing Aggregate turnover;

c) If a person is solely engaged in supply of goods/services

which are not liable to tax, then such shall not be liable to

take registration

d) Aggregate turnover shall include all supplies made by the

taxable person, whether on his own account or made on

behalf of all his principals.

e) However in case of supply of goods by registered job worker,

it shall be treated as supply of goods by principle and shall

not be included in aggregate turnover of job worker.

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Liability to take RegistrationParticulars Exemption Limit Remarks

Input Service Distributor No Exemption

Person making interstate

taxable supply

No Exemption Every person making interstate supply of taxable

goods or services shall be liable to take registration

under GST irrespective of the turnover

Casual Taxable person No Exemption Every casual taxable who occasionally undertakes

supply of goods or services in the course of

furtherance of business in a taxable territory where

he has no fixed place of business shall be liable to take

registration under GST irrespective of the turnover.

Person registered under

existing Indirect Tax laws

Every person who is currently registered under

existing indirect taxes shall be liable to be registered

under GST. However, if an assessee is not covered

under GST, then he shall be able to surrender its

registration.

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Liability to take Registration

Particulars Exemption Limit Remarks

Person liable to pay

tax under Reverse

Charge Mechanism

No Exemption Every person who is in receipt of specified services on

which he is liable to pay GST under Reverse Charge shall

be liable to take registration under GST irrespective of

the turnover.

Non Resident taxable

person

No Exemption Every non resident taxable person who occasionally

undertakes supply of goods or services in India but who

has no fixed place of business shall be liable to take

registration under GST irrespective of the turnover.

Person liable to deduct

TDS

Value of supply

under contract

exceed Rs. 10 lakhs

Every person specified by the Legislature to deduct tax

at source at the rate of 1% from the payment made or

credited to the supplier where the total value of supply

exceeds Rs. 10 lakhs shall be liable to take registration

under GST as a deductor

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Supplier of goods on

behalf of other taxable

person whether as agent

or otherwise.

No exemption. Every person who is making supply of goods/services

on behalf of other taxable person whether as agent or

otherwise shall be liable to take registration under

GST irrespective of the turnover.

Supplier of Goods/

services through E-

commerce operator

No Exemption Every person who is supplying goods/ services

through E-commerce operator shall be liable to take

registration under GST irrespective of the turnover as

the customer of the goods are scattered all over India.

Electronic commerce

operator

No Exemption Every E-commerce operator who owns, operates or

manages electronic platform that is engaged in supply

of goods or services for taxable persons shall be liable

to take registration under GST irrespective of the

turnover.

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Aggregator No Exemption Every aggregator who owns and manages an

electronic platform and by means of

application and communication device

connects a person with the supplier of service

under his own brand name or trade name

shall be liable to take registration under GST

irrespective of the turnover.

Any other category of person As may be prescribed Government may specify any other person or

class of person who shall be liable to take

registration under GST.


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Steps for Registration

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Other Important PointsCondition for Registration of Casual Taxable person and Non resident taxable person

Casual Taxable person and Non resident taxable person shall deposit advance tax equivalent to

the estimated tax liability and such registration shall be valid for the period of 90 days. The

period of 90 days can be extended for the further period not exceeding 90 days on the request of

such taxable person

Penalty for Non registration

Every person shall be liable to penalty of Rs. 10,000/- if:

He is liable to take registration but fails to obtain registration

He furnishes any false information with regard to particulars specified as mandatory at the

time of applying for registration.

Display of Registration Certificate in principal place of business

Every registered taxable person shall display his certificate of registration in a prominent

location at his principal place of business and at every additional place of business. It shall also

mention its GSTIN in the name board exhibited at the entry of principal place of business and of

every additional place of business

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Other Important PointsRegistration for Existing Dealers under existing Indirect Tax Laws

Assessee who is currently registered with various State or Central Indirect Statutes shall not be

required to apply for fresh registration and he shall get himself registered by following the

procedure prescribed in this regard.

Deemed Registration

If the proper officer does not grant registration to the applicant within the specified time limit

nor communicated any deficiency in the application to the applicant, then the registration shall

be deemed to have been granted after the expiry of stipulated time limit.

Rejection of application of registration under one act shall lead to automatic rejection

under other Act

Any application of registration under CGST Act/SGST Act by the department shall automatically

lead to rejection of application of registration under SGST Act/CGST Act.

Discharge of Tax liability under GST

Particulars Due date of payment of tax

Regular Assessee liable to be registered under

Schedule III of MGL

20th of the succeeding month to which liability

pertains

Assessee opted to discharge GST liability under

Composition Scheme

18th of the succeeding quarter to which the

liability pertains

Deductor/collector of tax at source 10th of the succeeding month in which the

deduction or collection is made

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Other Important PointsDate of payment of tax shall be the date of actual credit of amount in the government account.

Thus, if an assessee has deposited GST within due time limit but it has not been credited in the

government accounts till the last day of filing of return, then it shall be considered as late

payment of tax.

The amount deposited by an assessee shall be credited to the electronic cash ledger and such

amount can be adjusted against GST, interest, penalty, fees etc. payable under GST Act. An

assessee can make payment in its electrnoic cash ledger through debit card/credit card or NEFT

or RTGS or any other prescribed mode.

Any assessee who makes default in payment of GST either on its supply of goods/services or on

tax deducted /collected at source or under Reverse Charge mechanism shall be liable to pay

interest at the rate to be notified

Periodical ReturnsParticulars Prescribed

FormDue date of return

Details of outward supplies by every registered taxable

person other than ISD, or a person paying tax under

Composition Scheme or Deductor of tax at source.

GSTR-110th of the succeeding month

to which outward supplies

pertains.

Details of inward supplies by every registered taxable

person including person covered under reverse charge

mechanism but excluding ISD, or a person paying tax

under Composition Scheme or Deductor of tax at

source.


to which inward supplies

pertains.

Monthly return of GST by Regular Assessee liable to be

registered under Schedule III of MGL.


to which liability pertains.

Assessee opted to discharge GST liability under

Composition Scheme.

GSTR-418th of the succeeding quarter

to which the liability pertains.

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Periodical ReturnsParticulars Prescribed

FormDue date of return

Non Resident taxable person GSTR-5 20th after the end of a tax period or within 7

days after the last day of the validity period of

registration, whichever is earlier.

Input Service Distributor GSTR-6 13th of the succeeding month

Deductor/collector of tax at source GSTR-7/

GSTR-8

10th of the succeeding month in which the

deduction or collection is made

Annual Return by registered taxable

person other than ISD or Deductor of

tax at source or a casual taxable person

and a non-resident taxable person

GSTR-9 31st December following the end of each

financial year

Final Return to be submitted by the

registered taxable person who applied

for cancellation of registration

GSTR-10 Every registered taxable person shall file a final

return within three months from the date of

cancellation or date of cancellation order

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1. Details of outward supplies shall include details relating to zero-rated supplies, inter-state supplies, return of goods received in relation to/ in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices issued during the said tax period. However it shall not include details of exempted supplies.

Important points with respect to periodical returns

2. An assessee shall not be allowed to furnish return for any tax period if valid return for any previous tax period has not been furnished by him.

3. Valid return means return furnished after making payment of full tax dues as per such return.

4. Every registered person shall be liable to furnish return with the GST department even if no supplies of goods/services have been effected during the tax period i.e. he shall be liable to file NIL returns.

5. Any omission or deficiency in the return either out of its own motion or on being pointed out by the department or due to the mismatch in outward supply or inward supply shall rectify such omission or deficiency in the return for the period in which such omission or deficiency is noticed or communicated.

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6. Where there is a increase of output tax liability or reduction in input tax credit due to mismatch or reversal, an assessee shall be liable to pay the such output tax or input credit along with interest at the prescribed rate.

Important points with respect to periodical returns

7. Where an assessee has paid output tax or input credit due to mismatch of records which are subsequently been rectified, then the assessee shall be refunded the interest and tax paid by crediting the same in its electronic cash ledger.

8. Every assessee who is liable to get his accounts audited under Section 42 of the MGL shall along with its annual return, furnish the audited financial statements and reconciliation between the value of supplies declared in the return furnished for the year and audited annual financial statements.

9. Every person liable to furnish details of outward supply, and inward supply under section 25 and 26 of the MGL or return under Section 27 or section 31of MGL shall be liable to pay a late fee of Rs. 100 per day of delay or Rs. 5000 whichever is lower for delay in furnishing of return.

10 Every person liable to furnish annual return under Section 30 shall be liable to pay a late fee of Rs. 100 per day of delay subject to maximum of an amount equivalent to 0.25% of his aggregate turnover.

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Other CompliancesMaintenance of Accounts

Every registered taxable person shall keep and maintain, at his principal place of business a

true and correct account of production or manufacture of goods, of inward or outward supply of

goods and/or services, stock, input tax credit availed, output tax payable and paid.

Where more than one place of business is specified in the certificate of registration, then he

shall be liable to maintain accounts pertaining to such place at such place of business

Deemed Registration

Every registered taxable person having turnover exceeding the prescribed limit shall be liable to

get its accounts audited from a Chartered Accountant or a Cost Accountant and shall submit the

same to the proper officer along with the reconciliation statement reconciling difference

between audited financial statements and return filed during the year.

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Other CompliancesMaintenance of Accounts

Every registered taxable person shall retain books of accounts and other records until the expiry of

60 months from the last date of filing of Annual return for the year pertaining to such accounts and

records.

However, where the taxable person who is party to an appeal or revision or any other proceeding

before any appellate authority, tribunal or court whether filed by the taxable person or by the

department, he shall be liable to retain the accounts and records pertaining to subject matter of such

appeal, revision or proceeding for a period of one year after the final disposal of such appeal or

revision or proceeding.

For any clarification or discussion on this article, the author may be contacted at A2B/16A, Ekta

Apartments, Paschim Vihar, Delhi-110063, Phone: 011-45564490, 011-43464490, E-mail:

[email protected].

Disclaimer: The views in this article are author's point of view. This article is not intended to substitute

the legal advice. No portion of this article may be copied, retransmitted, reposted, duplicated or otherwise

used, without the express written approval of the author.

The Copyright of the article is with the author.

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Indian GST Registration and Compliances

Law

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