GST (GOODS & SERVICES TAX) is applicable in India from 01/07/2017, under the supervision of our honorable prime minister Mr Narendra Modi. GST replaced other taxes such as vat, service tax , sales tax Etc.
So commonly one question is prominently asked that who are responsible for registration under GST , the answer to this question is businessman .
So registration under GST is mandatory for all businessman who had exceed the threshold limit for registration under GST section 22 to 24. As registration under GST is pan based & it for specific states only, this means one registration per state is mandatory.
Here one question will click in your mind if a person want to take two registration in a single state will he succeed , the answer is yes he will succeed to take two or more registration in a single state only , As per GST act 2017, it has cleared stated that if a tax payer want to take separate registration for every business in single state there is no problem , but if a businessman had separate business in different state than he is mandatory to take different registration.
For example: Mr X is a registered businessman working in Delhi has two different business unit in same state ,so in this case it totally depends upon the taxpayer whether he want to take separate registration or want to continue with single registration as there is no enforceability for the businessman to take separate registration , but on the other hand, assume Mr X has two units at two different states then it makes Mr X to take mandatory registration in both the states.
Act 2017.
Those who have exceed the threshold limit for registration under GST act 2017
Applicable threshold limit are :
Compulsory GST registration for certain persons
There are certain person who are required to take compulsory registration under GST act 2017,
1. Inter state suppliers
2. Casual taxable persons (CTP)
3. Non resident taxable persons (NRTP)
4. Person paying tax on reverse charge mechanisms*
5. When there is a relationship of principal and agent between two parties
6. Any other person notified by Government under GST act 2017
*Reverse charge mechanisms: most commonly , the supplier of Goods have to pay tax on it , but under reverse charge mechanisms ,the recipient of goods become liable to pay tax i.e. chargeability of tax get Reversed.
Where & by when to apply for GST Registration?
1. A person who is liable to be Registered under section 22 or 24 of GST Act 2017
- In every State or union territory in which he is so liable
- He has to Registered within a period of 30 days from the date trough which he become liable for Registration
2. A casual taxable person or a Non resident taxable person
- In every State or Union territory in which he is commencing the business
- He is liable to be registered within a period of 5 days from the date of commencement of business in that State or Union territory.
Effective date of GST registration
♦ Application shall be submitted within 30 days from which he become liable for registration then the registration date will be date on which he applied for registration
♦ If application is submitted after 30 days of which he become liable for registration then the effective date from which he become liable for registration will be the date of grant of registration.
So thus if anybody want to apply for Registration under GST has to comply with the above formality of Registration under GST.
Written by : Sangam Kumar ( CA Finalist )
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