After the passage of more than 2 Years of GST Implementation in India, still, GST Law is not stable. GST Department is taking all corrective actions to streamline the law so that it is beneficial to Dealers as well as to the GST Department. After the implementation of GST Law, so many Notifications, circulars have been issued which creates confusion between the unregistered dealers, where it is the right time to take GST Registration or not. After the implementation of GST Law, so many queries come to professionals from dealers related to GST Registration and its compliances. Out of that numerous queries, in this article, we are going to cover some of that FAQ’s Queries.

GST Registration

Q 1. I am a small dealer trading in Fabrics and my turnover is less than Rs.10 Lakh and wants to do Interstate sale. Whether it is mandatory for me to take GST Registration?

Ans: Section 22 of the CGST Act 2017, which explains about conditions of GST Registration in which threshold limit for GST Registration is prescribed. But, section 24 of the CGST Act, 2017 overrides Section 22 and prescribed some situations in which GST Registration is Mandatory.

According to Section 24, if a person making any inter-state taxable supply then, it is mandatory for him to take GST Registration and no benefit of threshold limit is given to him. So, in your case, it is mandatory for you to take GST Registration.

Q 2. I am a small trader and doing intrastate business in 4 states and my aggregate turnover on the same PAN from 4 states is below the threshold limit as prescribed by GST Law. Whether I am liable for GST Registration?

Ans:  As per Section 2 (6) of the CGST Act, 2017, aggregate turnover to be computed on all India basis on the same PAN and if it is below the threshold limit then you are not mandatory required for GST Registration.

GST - Goods and Services Tax -Glass magnifier with the Goods and Service Tax acronym GST

Q 3. I want to register under GST and sell my products all over India. Where I can go for the Composition Scheme and sell my products on all India Bases.

Ans: Section 10 (2) (c)’ of CGST Act 2017, prohibit Interstate outward supplies of Goods. It means, if you get registered under the composition Scheme then you are eligible to do Intrastate Sale only.

Q 4. I have just started my trading business and want to sell my products through E-Commerce Portals like Flipcart, Amazon etc. Whether it is mandatory for me to take GST Registration even though my turnover is below the threshold limit?

Ans: As per Section 24 (ix) of the CGST Act, 2017, if you want to sell your products through the E-Commerce portal then it is mandatory to take GST Registration and no benefit of threshold limit is allowed in this situation.

Q 5. I want to start my new Business under Proprietorship. Which documents are required for GST Registration?

Ans: To encourage new businesses, GST Department has made the GST Registration process very easy. For GST Registration, you require these documents:-

1. PAN Card

2. Aadhar Card (Optional as on date, going to become mandatory very soon)

3. Photo of Proprietor

4. Mail id and Mobile Name

5. Trade Name

6. Electricity Bill or Rent Agreement/ Lease Deed/ Property Paper Etc. of that address on which GST Registration is required.

Q 6. I have taken new GST Registration 2 Months back and no sale-purchase transaction has been done on this GST Registration. Whether it is mandatory to file Monthly GST returns?

Ans: As on date, all GST Registered dealers are mandatory to file GSTR-3B on Monthly Basis and GSTR-1 on Monthly/ Quarterly Basis, on the basis of turnover limit. If you have not done any Sale Purchase transaction, then you are mandatory to file Nil GST Return.

Q 7. I have purchased material from a person who is filing his GSTR-1 on a quarterly basis and his GST Credit is not showing in my GSTR-2A. Whether I can claim that GST Credit, which is not showing in my GSTR-2A?

Ans: As per the latest guidelines issued by the GST Department, now you can avail of a maximum of 20% (10% Revised rate) of eligible credit showing in your GSTR-2A. If no figure is showing in your GSTR-2A then as per law you are not eligible to get any GST Credit. In simple words, it is better to get credit as and when credit is showing in your GSTR-2A.

Q 8.  I am a GST Registered person, if I do not file my GST Returns what were the consequences in that case.

Ans: If a GST Registered person does not file GST Returns for continuous 2 Months then E-Way Generation facility will be stopped and if he does not file returns for continuous 6 Months then his GST Registration may be canceled. Along with this, the dealer may face interest and penalty liability too.

Author’s Advice:  If you are GST registered person, then it is better to become a GST Compliance dealer, in otherwise case, soon these defaulters may face the heat of these non Compliances. Now, GST Department has started, to take all strict actions against these GST Defaulters.

This article is for the purpose of information and shall not be treated as a solicitation in any manner and for any other purpose whatsoever. It shall not be used as a legal opinion and not be used for rendering any professional advice. This article is written on the basis of the author’s personal experience and provision applicable as on the date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of other readers.

The Author “CA. Shiv Kumar Sharma” can be reached at mail [email protected] and Mobile/Whatsapp – 9911303737/ 9716118384

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, New Delhi, IN
Member Since: 03 Dec 2018 | Total Posts: 47
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

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