Frequently Asked Questions

Who are exempted from GST Registration?

The following shall not be required to obtain registration, and will be allotted a UIN (Unique Identification Number) instead. They can receive refund of taxes on notified supplies of goods/services received by them: 

  • Any specialised agency of UNO (United Nations Organisation) or any multilateral financial institution and organisation notified under the United Nations Act, 1947 
  • Consulate or Embassy of foreign countries
  • Any other person notified by the Board/Commissioner
  • The central government or state government may, based on the recommendation of the  GST council, notify exemption from registration to specific persons.

For login to the GST Common Portal, can I use the username and password which I use to login as State Registrant?

No, you cannot use the username or password that you use to login to the State VAT Portal. For the first time login to the GST Common Portal, you need to provide the username and password that you received from the State VAT or Centre Tax Department. For subsequent login, you need to create a username and password during enrolment at the GST Common Portal. You can then use the username and password that you created to login at the GST Common Portal.

Who are GST Suvidha Provider or GSP?

GSTN has developed a robust platform for taxpayers to access the GST Systems, however, that would not be the only way for interacting with the GST system as the taxpayer via his choice of third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, will be able to interact with the GST system. The third party applications will connect with GST system via secure GST system APIs. All such applications are expected to be developed by third party service providers who have been given a generic name, GST Suvidha Provider or GSP.

How will business returns be filed under GST Law?

Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly, there are separate returns for a taxpayer registered under the composition scheme and a taxpayer registered as an Input Service Distributor.

How long will take to get refund of GST?

If application for refund of CGST, IGST or SGST is in order with supporting documents, amount of refund of GST is granted within 90 days from the date of application for refund.

What is GSTIN?

Goods and Services Tax Identification Number (GSTIN) is a 15 digits state-wise PAN-based number to be used to identify businesses registered under GST.

Can we claim GST interest refund after two years of payment?

No, GST interest paid has to be claimed within 2 years of its payment.

What is the mode of payment of tax?

The payment of tax is in electronic mode with a common challan (i.e. document for payment of taxes) for all the taxes under three different modes of payment:-

  • Internet banking  including credit card/debit cards (Mode I)
  • Over the counter payments (for payments up to INR 10,000/-) (Mode II)
  • Payments through RTGS/NEFT (Mode III).

What is the minimum rate of tax prescribed for composition scheme?

1% is the minimum rate of tax prescribed for composition scheme.

How will the credit mechanism work under GST?

Both CGST and SGST are two parallel taxes under the ‘Dual GST’ regime levied simultaneously on goods and services. Therefore, the cross utilisation of CGST input tax credit for payment of SGST output tax liability and vice versa will not be permitted.  However, the GST credit pool is fungible with CGST and SGST and the same can be used for payment of IGST, CGST and SGST and vice versa. The order of utilisation of the IGST credit will be first towards IGST, then CGST and the balance towards SGST liability. Similarly, a SGST credit can be utilised first towards SGST liability and then towards IGST, whereas a CGST credit will be used first toward CGST and then afterwards IGST.

Can composition tax be collected from customers?

No, the taxable person under composition scheme is restricted from collecting tax. It means that a composition scheme supplier cannot issue a tax invoice.

 

What will be the short term impact of GST?

The GST will fuel inflation for the short term. The GST rate begins at 5% and 18% taxation services such as restaurants; movies etc. are bound to increase prices. Another issue with the GST that many pundits feel is not including liquor and petroleum under GST’s ambit. These are major revenue sources for the government and experts feel this is being done due to a few crony capitalists who need some time to funnel away their dark cash as the GST promises to widen the tax paying population.

Can composition scheme be availed if the taxable person effects inter-State supplies?

No, composition scheme is applicable subject to the condition that the taxable person does not affect interstate supplies.

What is remission of tax/duty?

It means relieving the tax payer from the obligation to pay tax on goods when they are lost or destroyed due to any natural causes. Remission is subject to conditions stipulated under the law and rules made there under.

How will exports be treated under GST?

Exports will be treated as zero-rated supplies. No tax will be payable on exports of goods or services, however credit of input tax credit will be available and same will be available as refund to the exporters.

 

What is the threshold for opting to pay tax under the composition scheme?

The threshold for composition scheme is Rs. 50 Lakhs of aggregate turnover in financial year.

How will imports be taxed under GST?

Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services are consumed. Full and complete set-off will be available on the GST paid on import on goods and Services.

Can the taxable person under composition scheme claim input tax credit?

No, taxable person under composition scheme is not eligible to claim input tax credit.

How will the goods and services be classified under GST regime?

HSN (Harmonised System of Nomenclature) code will be used for classifying the goods under the GST regime. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2 digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4 digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices. Services will be classified as per the Services Accounting Code (SAC)

Will a taxable person be eligible to opt for composition scheme only for one out of 3 business verticals?

No, composition scheme would become applicable for all the business verticals/registrations which are separately held by the person with same PAN

Who will decide rates for levy of GST?

The CGST and SGST would be imposed at rates to be mutually chosen by the Center and States. The rates would be advised on the suggestions of the GST Council.

What are the benefits available to small taxpayers under the GST regime?

Citizens/Taxpayers with an aggregate turnover in a financial year up to [Rs.10 lakhs] would be exempt from tax.[Aggregate turnover shall include the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services and exclude taxes viz.GST.] Aggregate turnover shall be computed on all India basis. For the NE States and Sikkim, the exemption threshold shall be [Rs. 5 lakhs]. All taxpayers eligible for threshold exemption will have the option of paying tax with input tax credit (ITC) benefits. Taxpayers making inter-State supplies or paying tax on reverse charge basis shall not be eligible for threshold exemption.

What is the requirement of dual GST?

India is a government nation where both the Center and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have particular duties to perform as per the division of forces endorsed in the Constitution for which they have to raise assets. A double GST will, in this manner, be with regards to the Constitutional the necessity of monetary federalism.

What is IGST?

Under the GST administration, an Integrated GST (IGST) would be imposed and collected by the Center on inter-State supply of merchandise and ventures. Under Article 269A of the Constitution, the GST on provisions over the span of between State exchange or trade should be required and gathered by the Government of India and such assessment should be allocated between the Union and the States in the way, as might be given by Parliament by law to the suggestions of the Goods and Services Tax Council.

What will be status of Tobacco and Tobacco items under the GST administration?

Tobacco and tobacco items would be liable to GST. Furthermore, the Center would have the power to levy Central Excise duty on these products.

Which are the commodities proposed to be kept outside the domain of GST?

Following are the items kept outside the domain of GST:

  • Alcohol for human consumption
  • Petroleum products
  • Motor Spirit (petrol)
  • High speed diesel
  • Natural Gas
  • Aviation Turbine Fuel
  • Electricity

Which of the existing Taxes are proposed to be introduced under GST?

Introduction of Goods and Service Tax will replace the following Taxes:-

Taxes currently imposed and collected by the Central government:-

  • Central Excise Duty
  • Duties of Excise (Medicinal and Toilet Preparations)
  •  Additional Duties of Excise (Goods of Special Importance)
  • Additional Duties of Excise (Textile and Textiles Products)
  • Additional Duties of Customs (CVD)
  • Special Additional Duties of Customs (SAD)
  • Service Tax
  • Central Surcharges and Cesses related to sully of Goods and Services

State Taxed introduced under GST are:-

  • State Vat
  • Central Sales Tax
  • Luxury Tax
  • Entry Tax
  • Entertainment and Amusement Tax
  • Taxes on Advertisement
  • Purchase Tax
  • Taxes on lotteries, betting and gambolling
  • State surcharges and Cesses

What are the Advantages of GST for a small business?

Advantages of GST for small business or start-ups

1. Simple Taxation

Presently, a start-up spends plenty of your time and energy to manage numerous taxes at various points. Adhering to completely different rules at different States creates a complex process. GST can change the method by integration all taxes, creating the method of paying tax less complicated

2. Easy Registration:

Any new business has to have a VAT registration from excise department. A business operative in many countries needs to face plenty of problems concerning the various procedures and charges in every state. GST can bring forth uniformity in method and centralised registration which will create beginning business and increasing in numerous States abundant less complicated.

3. Higher Exemption:

As per the present tax structure, any business with a turnover of more than Rs.5 Lakhs needs to get VAT registration and pay VAT. GST can create this limit higher, to upto Rs 10 Lakhs and, additional to that, businesses with turnover between Rs 10-50 Lakhs will be going to be taxed at a lower rates. This may bring rejoice to freshly established embark and little businesses.

4. Businesses in each sales and services:

Businesses like restaurants that fall into each sales and repair taxation have to calculate the VAT and repair tax on each thing individually. This makes the calculations method complex. GST won't distinguish between sales and services, and so the tax calculation will be done on the total.

5. Saving in logistic cost and time:

Several transport vehicles get delayed throughout movement across States as a result of little border tax and check post problems. Interstate movement can become cheaper and fewer time intense, as these taxes are eliminated. The complete Indian market exposes for makers as interstate offer becomes tax-neutral. this may conjointly bring down prices related to maintaining high stocks, as there'll be undisrupted movement of products. As per a CRISIL analysis, GST will cut back supplying prices of firms manufacturing non-bulk merchandise (comprising all merchandise besides the first bulk commodities transported by railways – coal, iron ore, cement, steel, food grains, and fertilizers) by the maximum amount as 20 %.

What all Documents will be required for GST Registration

The lists of documents required for GST Registration will vary from business to business. Following are the documents required for GST Registration according to the business type:-

Documents Required for Private Limited Company/Public Limited Company/One Person Company

Documents for the Company

  •  PAN Card of the Company
  • Certificate of Incorporation/Registration Certificate of the Company
  • Memorandum of Association (MOA)/Article of Association (AOA) of the company
  • Copy of the Bank Statement
  • Declaration to comply with the provisions
  • Copy of the Board Resolution             

Documents for the Directors

  • PAN Card and Identity Proof  

Documents for the Registered Office

  • Copy of the Electricity Bill/Landline Bill/Water Bill
  • No Objection Certificate (NOC) from the owner
  • Rent Agreement (if the property is rented)

 

Documents Required for Limited Liability Partnerships (LLP)

Documents for LLP

  • PAN Card of the LLP
  • Registration Certificate/Certificate of Incorporation of the LLP
  • LLP Partnership Agreement
  • Copy of the Bank statement of the LLP
  • Declaration to comply with the provisions
  • Copy of the Board Resolution

Documents related to Designated Partners

  • PAN Card and Identity Proof of Designated Partners

Documents for Registered Office

  • Copy of the Electricity Bill/Landline Bill/Water Bill
  • No Objection Certificate (NOC) from the owner
  • Rent Agreement (if the property is rented)

 

Documents Required for Normal Partnerships

Documents for Partnerships

  • PAN Card of the Partnership
  • Partnership Deed
  • Copy of the Bank Statement
  • Declaration to comply with the provisions
  • Documents for Partners
  • PAN Card and Identity Proof of the Directors

Documents for Registered Office

  • Copy of the Electricity Bill/Landline Bill/Water Bill
  • No Objection Certificate (NOC) from the owner
  • Rent Agreement (if the property is rented)

 

Documents Required for Individuals and Sole proprietorship

Documents for the Individuals

  • PAN Card and Identity Proof  of the Individual
  • Copy of the Cancelled Cheque or Bank Statement
  • Declaration to comply with the provisions

Documents for Registered Office

  • Copy of the Electricity Bill/Landline Bill/Water Bill
  • No Objection Certificate (NOC) from the owner
  • Rent Agreement (if the property is rented)

What is GST?

The Goods and Services Tax or GST is a taxation system wherever there's one tax within the economy for goods and services. This taxation system is supposed to make one taxation system within the entire country for all product and services.
 
The introduction of the Goods and Services Tax (GST) can please most Indian businesses. It hugely simplifies issues for near to any business that needs to cope with VAT, CST, Octroi, Service Tax and even a couple of alternative taxes (pretty a lot of all Indian businesses).The Goods and Services Tax will be a new taxation system which will cover the whole indirect taxes that were being levied by the government.
 
 GST will be imposed during the consumption, and also the net tax will be calculated when accounting for all the taxes paid on input, even as within the case of VAT. The idea behind Goods and Services Tax (GST) is to bring all businesses, freelancers and consultants beneath one legal system, whether or not they sell any product or services.

 

1970-01-01