Getting Gst Registration Is Done Online Without Any Hassle

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GST registration is required if your annual aggregate turnover Exceeds 20 Lakhs Rupees. In certain cases, you will need a GST number on a mandatory basis even if your turnover is within the threshold limit.

What is an aggregate turnover?

Aggregate turnover includes the aggregate value of:

(i) all taxable and non-taxable supplies,
(ii) exempt supplies, and
(iii) exports of goods and/or service of a person having the same PAN.

The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, and the IGST Act.
Aggregate turnover does not include the value of supplies on which tax is levied on a reverse charge basis and value of inward supplies.

When is GST number required on the mandatory basis:

Categories of persons required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons
whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services other than branded services, through electronic
commerce operator;
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name or his trade name; and
k) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

Registration GST number can be either Compulsory Registration or Voluntary Registration depending on certain factors. A dealer can register himself as a Regular dealer, Non-resident taxable person, composite dealer, Casual taxable person or Input service distributor.

What will be the effective date of registration?

Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be a date of his liability for registration.

Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.

In the case of suo-moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the
date of the order of registration.

Important facts for Registration GST number :

  • The taxpayer must hold a valid PAN since GST Identification Number
  • The Registered dealer needs to collect GST from customers and pay it to the government
  • The Registered dealer should prepare tax invoice or Bill of Supply as per GST Invoice Rules
  • The applicable GST rate must be charged on the goods or services supplied
  • The Registered dealer can claim the Input Tax credit on all purchases and expenses.
  • GST Registration cannot be canceled before the expiry of one year from the date of effective registration in case of voluntary registration.
  • The Registered dealer must file the necessary GST returns based on the type of registration and turnover limit.
GST Registration

Getting Registration of GST number Is Done Online Without Any Hassle

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GST registration is required if your annual aggregate turnover exceeds 20 lakhs rupees. In certain cases, you will need a GST number on a mandatory basis even if your turnover is within the threshold limit.

What is an aggregate turnover?

Aggregate turnover includes the aggregate value of:

(i) all taxable and non-taxable supplies,
(ii) exempt supplies, and
(iii) exports of goods and/or service of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, and the IGST Act.
Aggregate turnover does not include the value of supplies on which tax is levied on a reverse charge basis and value of inward supplies.

When is GST number required on the mandatory basis:

Categories of persons required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons
whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services other than branded services, through electronic
commerce operator;
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name or his trade name; and
k) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

Registration of GST number can be either Compulsory Registration or Voluntary Registration depending on certain factors. A dealer can register himself as a Regular dealer, Non-resident taxable person, composite dealer, Casual taxable person or Input service distributor.

What will be the effective date of registration?

Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date of his liability for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In the case of suo-moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of the order of registration.

Important facts for Registration of  GST number :

• The taxpayer must hold a valid PAN since GST Identification Number
• The Registered dealer needs to collect GST from customers and pay it to the government
• The Registered dealer should prepare tax invoice or Bill of Supply as per GST Invoice Rules
• The applicable GST rate must be charged on the goods or services supplied
• The Registered dealer can claim the Input Tax credit on all purchases and expenses.
• GST Registration cannot be canceled before the expiry of one year from the date of effective registration in case of voluntary registration.
• The Registered dealer must file the necessary GST returns based on the type of registration and turnover limit.

GST Registration

Impact of Goods and Services Tax on Hotel Industry

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“Athithi Devo Bhavha” (Guest is God) has been one of the central tenets of Indian culture since times immemorial. Today, the hospitality sector (which includes tourism also) is one of the fastest growing sectors in India and is expected to grow at the rate of 8 % between 2007 and 2016. The boom in travel and tourism has led to the further development of the hospitality industry. Consequently, the hospitality industry is expanding globally and promoting its growth in a changing multicultural environment. Hotels contribute to the output of goods and related services which build well being of their nations and communities.

Goods and Services Tax(GST) as a tax reform 

Migrating to Goods and Services Tax (GST) is a time to revisit the taxation and remove the anomalies. Hotel industry (includes tourism) contributes to 6.23 percent to the National GDP and 8.78 percent of the total employment in the country.

Goods and Service Tax (GST) is a destination based consumption tax which is a levy of tax on all goods and services with the objective of expanding the tax base through wide coverage of economic activities, mitigating the cascading effect, reduction of exemptions, enable better compliances etc. thereby resulting into formation of common national market for goods and services .

Present Scenario 

Hotel Sector in India is presently covered as one of the priorities of the Government and as such is allowed tax relief in the form of abatements vide N.No. 26/2012-ST dated 20.06.2012.

Presently, the hotel industry is plagued by multiple taxes i.e., Service tax, luxury tax, and VAT which ultimately results into cascading effect. The three taxes that are levied are the VAT and luxury tax by the States and service tax by the Centre. The VAT rate varies from state to state (generally levied between 12% to 14.5%), luxury tax depends on the room tariff and the state (generally varies from Nil to 12%). Similarly, service tax varies on the type of service. For hotels with room tariff in excess of Rs 1,000 and above, service tax is applicable at 60% of room tariff in addition to VAT (ranging between 12 to 14.5%) and luxury tax wherever applicable. In the case of restaurants on the F&B bills, service tax is applicable on 40% of the bill or effective rate of 5.8% apart from VAT @ 12 to 14.5%. In the case of social functions (marriage, seminars etc.) the applicable service tax rate after 30% abatement is 10.15%.

When the VAT, service tax and luxury tax are combined, the total impact goes up and lies between 20 to 27 percent. As input credit from central taxes cannot be set off against VAT liability and vice-versa, this leads to the cascading effect. The present rate of service tax is 15% including cesses viz Swachh Bharat Cess (SBC) and Krishi Kalyan Cess (KKC).

In GST Regime

According to the Model law on GST which neither contains the exemptions nor the rates of taxation, it appears that all services in relation to hotels and restaurants would be subject to levy of GST as the same is to be treated as ‘supply’. Section 3 read with Schedule II stipulates that supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration shall be treated as supply. However, the rates are expected to be in the range of 18-20%.

In the proposed GST regime, GST shall be payable by taxable persons on the supply of goods and services. A taxable person is defined in Section 9 of Model GST law which stipulates that a person who carries on any business at any place in India / State and who is registered or required to be registered under Schedule III of the Act.

Further, a person is required to be registered if its aggregate turnover in a financial year exceeds Rs. 20 lakhs all over India other than North Eastern states.

For North-eastern states including Sikkim and hill stations, the threshold limit would be Rs. 10 lakhs.
There are no specific provisions for inclusions or exclusions of hotels and restaurants services or any other activity related to hotels/restaurants elsewhere in the proposed law.

Likely Impact in GST regime 

Based on the provisions of Model Law, it can be said that the hotel sector shall be impacted both positively and negatively under the GST regime.

  • The multiple taxes would be replaced by one single tax, the rate of which is likely to be between 16%-18%. The hotel industry would benefit in the form of the lower tax rate which should help in attracting more tourists in India.
  • There are likely to be concerned in the valuation of restaurant services in view of the industry practice of discounts/offers/policies in the form of incentives. The proposed valuation rules are different from the existing ones and as such this sector need to frame an appropriate policy for such discounts in advance making it a part of the documentation.
  • Service providers having centralized registration will have to get registered in each state whether providing hotel services on own account or through the agent (franchise).
  • Service providers will have an option to take different registration or separate business verticals which needs to be examined on a case to case basis.
  • The procedure for all the invoices/receipts towards inward and outward supplies will become cumbersome as each one of them will have to be uploaded in the system.
  • The frequency and number of returns to be filed will go up.
  • There is a provision for GST audit if the turnover is more than the prescribed limit.
  • The e-commerce companies may have to revamp the current models, as the VAT rate arbitrage available in the current law may not be available in GST. Tax Collection at Source (TCS) provisions has been introduced on e-commerce operators in the Model GST Law. However, there are no provisions relating to the collection of tax at source under the current tax regime.
  • Alcohol and electricity are out of the purview of GST net. The taxation on alcohol would be different than the single GST rate. The hotel industry consumes a lot of electricity as a prime consumable and the levy of electricity duty would also not be covered in GST. Thus, the hotel industry would not be able to avail the input credit on the two items which will have a negative impact on this sector.
  • The hotel industry spends a lot of money on construction and renovation. They have to move with the times in order to remain competitive and attract customers. The money paid as taxes on the construction activities cannot be used as input credit to set off the taxes paid on the services offered by the hotels and restaurants. The R&D cess which is applicable to technical know-how fees and franchise agreements in the industry is likely to become a part and parcel of GST.

job-work-under-GST

Job Work under GST

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Job work has been defined under Section 2(62) of the Model GST Law as “undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression “job worker” shall be construed accordingly”.

The expression “job work” refers to a “treatment” or “process”, which is undertaken by one person, who may or may not be registered, to another registered person.

While treatment and processing are commonly understood as services, there is no implication that job work is purely services, or that goods would not be used for such treatment or processing. However, Schedule II of the CGST Act which specifies activities to be treated as a supply of goods or supply of services, inter alia provides that any treatment or process which is applied to another person’s goods is a supply of services. Such a deeming fiction in respect of job work is given effect to, based on the primary objective of any job work, which is to provide a service.

Procedure and compliance under GST

    • Goods sent for job work must be accompanied with a challan
    • Goods sent must be received back by the principal within the period:
      • Inputs, semi-finished or finished goods- 1 year
      • Capital Goods- 3 years

Of being sent out by the principal to the job worker

    • In the case where the goods sent have not been received back within the period as mentioned above, such goods will be treated as supplied to the job worker by the principal. The further tax will be required to be paid by the principal on such deemed supply.
    • The principal may on his own will
      • Receive back the goods after processing from job worker
      • Supply to his customers from the place of business of job worker

Under both the situations, ITC paid on the purchase of goods sent on job work will be allowed to the principal.

Note: In the second point of 4, Principle can supply goods from the place of business of a job working only if he declares the place of business of the job working as his additional place of business except when

i) job worker is registered/s 25 or

ii)where the principle is engaged in the supply of such goods as may be notified by the commissioner.

  • Waste and scrap generated during the initial process, intermediate process, assembly, packing or any other completion process may be sold on payment of tax by:
    • Job worker– if he holds a registration
    • Principal– if job worker does not hold a registration

ITC on Job Work

Goods purchased may be sent to the job working in the following manner:

    • From the principal’s place of business
    • Directly from the place of supply of the supplier of such goods

ITC will be allowed in both the cases.

  • The effective date for goods send depends on the place of business:
    • Sent from the principal’s place of business- Date of goods sent out
    • Sent Directly from the place of supply of the supplier of such good- Date of receipt by job worker
  • The goods sent must be received back by the principal manufacture within the following period:
    • Capital Goods– 3 years
    • Input Goods– 1 year

from the date(effective date) of being sent out or receipt by job worker depending on the place of business from where goods are sent

  • In case goods are not received within the period as mentioned in point 3, such goods will be treated as supply from the effective date and tax will be payable on such deemed supply and the challan issued will be treated as an invoice for such supply

Transition provisions

  • Inputs, semi-finished goods or finished goods removed for job work for carrying certain processes and returned on or after the appointed date.
  • In case any inputs or semi-finished goods had been removed before the appointed date from the factory of the manufacturer and sent to a job worker for carrying further processing, testing, repair or for a similar purpose, and the same is returned to said place of manufacturer on or after the appointed date, no tax shall be payable if the following conditions are satisfied:
    • Underlying goods are returned to the factory within 6 months from the appointed date (extendable for a maximum period of 2 months).
    • Declaration of the goods held by the job worker is done in a specified form and manner
    • Supply of semi-finished goods or finished goods is done only on payment of tax in India or the goods are exported out of India within 6 months from the appointed date (extendable by not more than 2 months).

If the underlying inputs, semi-finished goods or finished goods are not returned within 6 months or extended period, ITC availed earlier under existing laws will be recovered

Conditions and restrictions for claiming Input Credit on Job work

  • Inputs, semi-finished goods or capital goods send on job work
    • From the principal’s place of business
    • Directly from the place of supply of the supplier of such goods

must be dispatched along with a challan

  • The challan issued must include the following particulars:
    • Date and number of the delivery challan
    • Name, address, and GSTIN of the consigner and consignee
    • HSN code, description, and quantity of goods
    • Taxable value, tax rate, tax amount- CGST, SGST, IGST, UTT separately
    • Place of supply and signature
  • The details of challan must be shown in FORM GSTR-1
  • Details of goods/capital goods sent to a job worker and received back must be filed through Form GST ITC – 4
GST Registration

WHAT IS THE GST REGISTRATION PROCEDURE

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GST REGISTRATION PROCEDURE

The taxation system for goods and services in India is defined by a cascading tax structure which leads to slower economic growth. To remove this problem, a uniform and a simple tax system like GST (Goods and Service Tax) is needed to unite the nation. The main expectation from this is to abolish all indirect taxes and only GST would be levied. GST is levied both on goods and services. The GST system starts across India on 01 April 2017.

WHO NEEDS GST REGISTRATION?

  • If any business has an annual turnover of more than 40 Lakhs Per Annum (10 Lakh for the North Eastern States)
  • If there is any interstate transaction
  • If Business is already registered under VAT, Excise Laws, Service Tax Laws
  • If you have E-commerce/online business
  • If you have an export business

DOCUMENTS REQUIRED FOR GST REGISTRATION?

FOR PROPRIETORSHIP- 

  • PAN card of the owner
  • Aadhar card of the owner
  • Photograph of the owner
  • Electricity bill of the premises

FOR PARTNERSHIP/ PRIVATE LIMITED COMPANY

  • PAN card of the company/ partnership
  • PAN card of the Director/ partner
  • Aadhar card of the Director/ partner
  • Photograph of the Director/ partner
  • Electricity bill of the premises
  • Partnership Deed/ Certificate of Incorporation
  • Letter of Authorization

WHAT IS THE REGISTRATION PROCEDURE FOR GST?

Goods & Service Tax registration is an online process through a portal maintained by the Government of India

The applicant will need to submit his PAN, mobile number and email address in Part A of Form GSTR–01 on the GSTN portal or through Facilitation center (notified by the board or commissioner).

The PAN is verified on the GST Portal. One-time password (OTP) is received on the registered Mobile number and E-mail address for verification. Once the verification is complete, the applicant will receive an application reference number (ARN) on the registered mobile number and via E-mail. An acknowledgment should be issued to the applicant in FORM GSTR-02 electronically.

Applicant needs to fill Part- B of Form Goods & Service Tax REG-01 and specify the application reference number. Then the form can be submitted after attaching all the required documents.

If additional information is required, Form GSTR-03 will be issued. Applicant needs to respond in Form Goods & Service Tax REG-04 with required information within 7 working days from the date of receipt of Form Goods & Service Tax REG-03.

If you have provided all required information via Form Goods & Service Tax REG-01 or Form Goods & Service Tax REG-04, the registration certificate in Form GST REG –06 will be issued to the applicant.

The whole GST registration process takes around 7-8 working days.

GOODS & SERVICE TAX REGISTRATION FEES

We at CAONWEB provide services of online GST registration, you can contact our team of professionals for any query related to this. The prices for GST registration starts with Rs. 2000/-

Benefits.

Unique Identification Number(UIN)

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Grant of Unique Identification Number(UIN)

  • Any specialized agency of the United Nations Organization or
  • any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947),
  • Consulate  of
  • Embassy of foreign countries ;
  • Any other person or classes of person notified by the Commissioner shall obtain Unique Identification Number

The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States.

This UIN required for claiming a refund of taxes paid by them and for any other purpose as may be prescribed in the GST Rules.

Responsibility of the taxable person supplying to UN bodies

The taxable supplier supplying to these organizations is expected to

  • mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and
  • the invoices of the same will be uploaded by the supplier.

Registration for Govt. organization

 A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.

Distinguish-Between-Debit-And-Credit-Note

What is Debit Note and Credit Note?

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What is Debit Note and Credit Note?

When goods supplied are returned or when there is a revision in the invoice value due to goods (or services) not being up to the mark or extra goods being issued a Debit Note or Credit Note is issued by the supplier and receiver of goods and services.

A debit note or a Credit Note can be issued in 2 situations –

  1. When the amount payable by the buyer to seller decreases –There can be a change in the value of goods after the goods are delivered and invoice is issued by the seller. This can be due to a return of goods or due to the bad quality of the goods delivered, etc.In this case, the value of goods decreases due to which a Debit Note is issued by the purchaser to the seller. The Debit Note provides details of the amount of money debited from the sellers’ account and also states the reason for the same.The reason behind this – In the purchaser’s books of account the seller will have a credit balance. When a debit note is issued the credit balance of the Sellers account decreases, thus reducing the seller’s balance. It means that that lesser amount is required to be paid by the buyer to the seller to settle his liability. Thus debit note reduces the liability for the buyer.The seller issues a Credit Note as a response or acknowledgment to the Debit Note
  2. When the amount payable by the buyer to seller increases-When the value of invoice increases due to extra goods being delivered or the goods already delivered have been charged at an incorrect value a Debit Note is required to be issued.The Debit Note, in this case, is issued by the seller to the buyer. And the buyer as an acknowledgment of the receipt of Debit Note issues a Credit Note.The reason behind this – In the seller’s books of account the buyer will have a debit balance. When a debit note is issued the debit balance of the buyer’s account increases. It means that more amount is required to be paid by the buyer to the seller to settle his liability. Thus, credit note increases the liability for the buyer.

Debit Note under GST

Cases when Debit note is to be issued by supplier:

  Cases Where Debit note has to be issued by the Supplier
A. Original tax invoice has been issued and taxable value in the invoice is less than actual taxable value.
B.

Original tax invoice has been issued and tax charged in the invoice is less than actual tax to be paid.

Note Debit note will include a supplementary invoice.

Credit Note under GST

Cases when Credit note is to be issued by supplier:

  Cases Where Credit note has to be issued by the Supplier
A Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
B  Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
C  Recipient returns the goods to the supplier
D   Services are found to be deficient
 Note: Credit note will include a supplementary invoice