FAQs
There can be a situation where you might come up with certain doubts or unclarified thoughts and for the same we have come up with FAQs for your remedy. Here, we have discussed some common questions that might arise in practical situation. Hope that they serve the best parts of your dillemma. Rest you can contact for any further doubts.
1. What are the Special Category States for the purpose of registeration under GST?
States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
2. What is advantage of taking registration in GST?
We calculate Net foreign exchange earnings accordingly: Net Foreign Exchange = (Gross Earnings for Foreign exchange – Total expenses/payments/remittances relating to service in Financial year)
Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
- Legally recognized as supplier of goods or services
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods orservices or both by the business.
- Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients
3. Can a person without GST registration claim ITC and collect tax?
No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.
4. 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 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 case of suomoto 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 order of registration.
5. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?
No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST
6. Whether a person having multiple business verticals in a state can obtain for different registrations?
Yes. As per the provision of the act, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
7. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
Yes. As per the provision of the act, a person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
8. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
Yes. Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration GST Law.
However, PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed
9. Whether the Department through the proper officer, can suo-moto proceed with registration of a Person under this Act?
Yes. where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under the MGL, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed.
10. Whether the proper Officer can reject an Application for Registration?
Yes. the proper officer can reject an application for registration after due verification. However, it is also provided that, the proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.
11. Whether the Registration granted to any person is permanent?
Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
12. Is it necessary for the Govt. organization to get registration?
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.
13. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident Taxable person?
In terms of Section 27(1) read with proviso thereto, the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.
14. Whether Amendments to the Registration Certificate is permissible?
Yes, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars within a period of 15 common working days from the date of receipt of application for amendment.
15. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?
Yes, the cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act).
16. Can the proper Officer Cancel the Registration on his own?
Yes, the proper officer can cancel the registration on his own. for not filing return by a composition dealer for three consecutive tax periods or non-furnishing of returns by a regular taxpayer for a continuous period of six months, and not commencing business within six months from the date of voluntary registration. However, before cancelling the registration, the proper officer has to follow the principles of natural justice.
17. What happens when the registration is obtained by means of willful mis-statement, fraud or suppression of facts?
In such cases, the registration may be cancelled with retrospective effect by the proper officer. (Section 29(2)(e))
18. Is there an option to take centralized registration for services under GST Law?
No, the tax payer has to take separate registration in every state from where he makes taxable supplies.
19. If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each such vertical in the state?
No, however the taxpayer has the option to register such separate business verticals independently in terms of the proviso to Section 25(2) of the CGTST Act, 2017.
20. Will ISD be required to be separately registered other than the existing tax payer registration?
Yes, the ISD registration is for one office of the taxpayer which will be different from the normal registration.
21. Is a job worker required to take registration?
Yes, as job work is a service, the job worker would be required to obtain registration if his aggregate turnover ex
22. Whether the job worker will have to be compulsorily registered?
No, a Job worker is a supplier of services and will be obliged to take registration only when his turnover crosses the prescribed threshold of 40/20/10 Lakhs.
23. At the time of registration will the assessee have to declare all his places of business?
Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST/SGST Act respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.
24. Can the registration certificate be downloaded from the GSTN portal?
In case registration is granted; applicant can download the Registration Certificate from the GST common portal.
25. Will threshold exemption be available to electronic commerce operators liable to pay tax on notified services?
No. Threshold exemption is not available to e-commerce operator who are require to pay tax on notified services provided through them.
26. Is every e-commerce operator required to collect tax on behalf of actual supplier?
Yes, every e-commerce operator is required to collect tax where consideration with respect to the supply is being collected by the e-commerce operator.
27. At what time should the e-commerce operator make such collection?
The e-commerce operator should make the collection during the month in which supply was made.