VISION COLLAGE OF MANAGEMENT

KANPUR
SUBMITTED TO,
MISS KEERTI TIWARI
SUBMITTED BY,
M\S. ANAM FATIMA
 ROLL NO.0204566 B.B.A 3RD YEAR
GST
ASSIGNMENT NO.4
Q1.Explain the provision of tax payment under
GST tax?
As India is moving towards digitization, GST has provided an
easy and simple way of payment of taxes. Under GST regime,
all the taxpayers will get three electronic ledgers namely E-cash
Ledger, E-credit Ledger & E-liability Ledger through their GST
profile.
E-cash Ledger:
The electronic cash ledger under sub-section (1) of section 49
shall be maintained in FORM GST PMT-05 for each person,
liable to pay tax, interest, penalty, late fee or any other amount,
on the common portal for crediting the amount deposited and
debiting the payment there from towards tax, interest, penalty,
fee or any other amount. Thus, Payment can be made in cash
by debiting the cash ledger maintained on the common portal.
Money can be deposited in the Cash Ledger by modes as
depicted in the above diagram. Over the Counter, Payment can
be made in branches of Banks Authorized (for deposits up to
ten thousand rupees per challan per tax period, by cash,
cheque or demand draft) to accept a deposit of GST.A challan
in FORM GST PMT-06 is required to be generated and the
details of the amount to be deposited towards tax, interest,
penalty, fees or any other amount will be entered in the challan.
Challan in FORM GST PMT-06 generated at the Common
Portal shall be valid for a period of fifteen days

E-Debit or Credit Ledger:

Every registered taxable person is required to record and
maintain an electronic liability ledger in Form GST PMT- 01 and
all amounts payable wall be debited in the said register. The
electronic credit ledger shall be maintained in FORM GST
PMT-02 for each registered person eligible for input tax credit
under the Act on the Common Portal and every claim of input
tax credit under the Act shall be credited to the said Ledger.
Payment of every liability by a registered taxable person can be
made by debiting the e-liability ledger or E- cash ledger Any
amount of demand debited or amount of penalty imposed or
liable to be imposed in the electronic tax liability register shall
stand reduced to the extent of relief given by the appellate
authority or Appellate Tribunal or court or if the taxable person
makes the payment of tax, interest, and penalty specified in the
show cause notice or demand order, the electronic tax liability
register shall be credited accordingly.
Any payment required to be made by a person who is not
registered under the Act shall be made on the basis of a
temporary identification number generated through the
Common Portal.

Q2.Explain the procedure for obtaining

registration certificate OF GST ?

GST Registration Procedure

GST registration applies to all individuals and entities supplying
goods or services in India. GST registration becomes
mandatory when the aggregate value of supply exceeds Rs.20
lakh. The Ministry of Finance (MoF) simplified the GST
registration procedure to ease the tax filing process. If the entity
operates in a special category state, GST registration becomes
applicable if the value exceeds Rs.10 lakh p.a. In this article, let
us look at the eligibility for obtaining GST registration. The
article also coves documents required as well as the GST
registration procedure online.
GST Registration
Eligibility Criteria
The following mentions the categories and eligibility for GST
registration:

Turnover Criteria
“Aggregate turnover” refers to the aggregate value of all taxable
supplies. It includes the following:

 Exempt supplies (excluding the value of inward supplies

on which tax is payable by a person on reverse charge
basis),
 Exports of goods, services or both and
 Entities providing supplies between States having the
same PAN. However, the entity should be excluded from
central tax, State tax, Union territory tax, integrated tax as
well as cess.
If an entity receiving an aggregate turnover of more than Rs.20
lakh should register for GST. For special category state, the
individual shall register upon receiving Rs.10 lakh as the annual
turnover.

Inter-State Supply
The supplier shall take responsibility in obtaining GST upon
transferring goods from one state to another. The individual
shall acquire GST, even if the annual aggregate turnover
criteria is not satisfied. Earlier, GST registration mandated that
suppliers shall acquire GST upon providing goods or services
between states.

However, the GST council revised GST requirement for

service providers. The amendment stated that service providers
should obtain GST only if the annual turnover exceeds Rs.20
lakh. The services shall apply for providing services in both
inter-state or intra-state.

Supply through E-commerce Platforms

Any individual supplying goods or services through an e-
commerce platform shall apply for GST registration. The
individual shall register irrespective of the turnover. Hence,
sellers on Flipkart, Amazon and other e-commerce platforms
must obtain registration to commence activity.

Casual Taxable Persons

Any individual undertaking supply of goods, services
periodically, through a temporary stall or shop must apply for
GST. The individual shall apply irrespective of the annual
aggregate turnover.

Voluntary Registration
In addition to the above, any entity can obtain GST registration
voluntarily. Earlier, any entity who obtained GST voluntarily can
not surrender the registration for up to a year. However, after
revisions, voluntary GST registration can be surrendered by the
applicant at any time.

Types of GST Registration

The following details the types of GST registration:

Normal Taxpayer
This category of GST registration applies to taxpayers
operating a business in India. Taxpayers registering for normal
taxpayer does not require a deposit and also provided with
unlimited validity date.

Composition Taxpayer
To register as a Composition Taxpayer, the individual should
enrol under GST Composition Scheme. Taxpayers enrolled
under the Composition Scheme can pay a flat GST rate.
However, the taxpayer would not be allowed to claim the input
tax credit.

Casual Taxable Person

Any taxpayer establishing a stall or seasonal shop shall register
under Casual Taxable Person. To register as a casual taxable
person, the taxpayer shall pay a deposit equal to the amount of
GST liability. The liability should match the active registration
periods. The registration remains active for a period of 3
months.

Non-Resident Taxable Person

The category non-resident taxable person applies to individuals
located outside of India. The taxpayers should and supplying
goods or services to residents in India. To register as a casual
taxable person, the taxpayer shall pay a deposit equal to the
amount of GST liability. The liability should match the active
registration periods. The registration remains active for a period
of 3 months.
The following details the types of GST Registration procedure:

 GST Registration for Non-Resident Online Service

Provider
 UN Body /Embassy/Other Notified Person
 Special Economic Zone Developer
 Special Economic Zone Unit (SEZ)
 GST TDS Deductor-Government Entities
 GST TCS Collector -E-commerce Companies

Documents Required for GST Registration

The following is the list of documents required for obtaining
GST registration:

Proof of Constitution of Certificate of Incorporation

Business (Any One)

Passport size photo of the Passport size photo of

applicant Promoter/Partner

Photo of the Authorised Photo

Signatory

 Proof of Appointment of Letter of Authorisation

Authorised Signatory (Any
One)

Copy of Resolution passed by BoD/

Managing Committee and Acceptance
letter

Proof of Principal Place of Electricity Bill

business (Any One)
 Legal ownership document

Municipal Khata Copy

Property Tax Receipt

Proof of Details of Bank The first page of Pass Book

Accounts (Any One)

Bank Statement

Cancelled Cheque

GST Registration Procedure

The MoF simplified the GST registration procedure online. The
applicant can process the GST registration procedure through
the GST Portal. After submission of the application, the portal
generates GST ARN immediately. Using the GST ARN, the
applicant can check the application status and post queries if
necessary. Within 7 days of ARN generation, the taxpayer shall
receive a GST registration certificate and GSTIN.
Step 1: Go to the GST Portal
Access the GST Portal ->https://www.gst.gov.in/ > Services ->
Registration > New Registration option.

GST Registration – Step 1

Step 2: Generate a TRN by Completing OTP Validation
The new GST registration page is displayed. Select the New
Registration option. If the GST registration application remains
uncompleted, the applicant shall continue filling the application
using TRN number.

 Select the Taxpayer type from the options provided.

 Choose the state as per the requirement.
 Enter the legal name of the business/entity, as mentioned
in the PAN database. As the portal verifies the PAN
automatically, the applicant should provide details as
mentioned in the card.
 In the Permanent Account Number (PAN) field, enter PAN
of the business or PAN of the Proprietor. GST registration
is linked to PAN. Hence, in the case of a company or LLP,
enter the PAN of the company or LLP.
 Provide the email address of the Primary Authorized
Signatory. (Will be verified in next step)
 Click the PROCEED button.
 GST
Registration – Step 2
Step 3: OTP Verification & TRN Generation
On submission of the above information, the OTP
Verification page is displayed. OTP will be valid only for 10
minutes. Hence, enter the two separate OTP sent to validate
the email and mobile number.

 In the Mobile OTP field, enter the OTP.

 In the Email OTP field, enter the OTP.

Step 4: TRN Generated

On successfully completing OTP verification, a TRN will be
generated. TRN will now be used to complete and submit the
GST registration application.
GST Registration – Step 3
Step 5: Log in with TRN
Upon receiving TRN, the applicant shall begin the GST
registration procedure. In the Temporary Reference Number
(TRN) field on the GST Portal, enter the TRN generated and
enter the captcha text as shown on the screen. Complete the
OTP verification on mobile and email.

GST Registration – Step 4

Click on the icon marked in red to start the GST registration
process.

Step 6: Submit Business Information

Various information must be submitted for obtaining GST
registration. In the first tab, business details must be submitted.

 In the Trade Name field, enter the trade name of the

business.
 Input the Constitution of the Business from the drop-down
list.
 Enter the District and Sector/ Circle / Ward / Charge/ Unit
from the drop-down list.
 In the Commissionerate Code, Division Code and Range
Code drop-down list, select the appropriate choice.
 Opt for the Composition Scheme, if necessary
 Input the date of commencement of business.
 Select the Date on which liability to register arises. This is
the day the business crossed the aggregate turnover
threshold for GST registration. Taxpayers are required to
file the application for new GST registration within 30 days
from the date on which the liability to register arises.
 GST
Registration – Business Information
Step 7: Submit Promoter Information
In the next tab, provide promoters and directors information. In
case of proprietorship, the proprietors’ information must be
submitted. Details of up to 10 Promoters or Partners can be
submitted in a GST registration application.

The following details must be submitted for the promoters:

 Personal details of the stakeholder like name, date of

birth, address, mobile number, email address and gender.
  Designation of the promoter.
 DIN of the Promoter, only for the following types of
applicants:
o Private Limited Company
o Public Limited Company
o Public Sector Undertaking
o Unlimited Company
o Foreign Company registered in India
 Details of citizenship
 PAN & Aadhaar
 Residential address

In case the applicant provides Aadhaar, the applicant can use

Aadhaar e-sign for filing GST returns instead of a digital
signature.
 GST
Registration – Promoter Information
Step 8: Submit Authorised Signatory Information
An authorised signatory is a person nominated by the
promoters of the company. The nominated person shall hold
responsibility for filing GST returns of the company. Further, the
person shall also maintain the necessary compliance of the
company. The authorised signatory will have full access to the
GST Portal. The person shall undertake a wide range of
transactions on behalf of the promoters.

Step 9: Principal Place of Business

In this section, the applicant shall provide the details of the
principal place of business. The Principal Place of Business
acts as the primary location within the State where the taxpayer
operates the business. It generally addresses the books of
accounts and records. Hence, in the case of a company or LLP,
the principal place of business shall be the registered office.

For the principal place of business enter the following:

 Address of the principal place of business.

 Official contact such as Email address, telephone number
(with STD Code), mobile number field and fax number
(with STD Code).
 Nature of possession of the premises.

If the principal place of business located in SEZ or the applicant

acts as SEZ developer, necessary documents/certificates
issued by Government of India are required to be uploaded by
choosing ‘Others’ value in Nature of possession of premises
drop-down and upload the document.

In this section, upload documents to provide proof of ownership

or occupancy of the property as follows:

 Own premises – Any document in support of the

ownership of the premises like Latest Property Tax
Receipt or Municipal Khata copy or copy of Electricity Bill.
 Rented or Leased premises – A copy of the valid Rent /
Lease Agreement with any document in support of the
ownership of the premises of the Lessor like Latest
Property Tax Receipt or Municipal Khata copy or copy of
Electricity Bill.
 Premises not covered above – A copy of the Consent
Letter with any document in support of the ownership of
the premises of the Consenter like Municipal Khata copy
or Electricity Bill copy. For shared properties also, the
same documents may be uploaded.
 GST
Registration – Place of Business
 
Step 10: Additional Place of Business
Upon having an additional place of business, enter details of
the property in this tab. For instance, if the applicant is a seller
on Flipkart or other e-commerce portal and uses the seller’s
warehouse, that location can be added as an additional place
of business.

Step 11: Details of Goods and Services

In this section, the taxpayer must provide details of the top 5
goods and services supplied by the applicant. For goods
supplied, provide the HSN code and for services, provide SAC
code.

Click here to find HSN code and SAC code.

GST
Registration – Goods & Services Supplied
Step 12: Details of Bank Account
In this section, enter the number of bank accounts held by the
applicant. If there are 5 accounts, enter 5. Then provide details
of the bank account like account number, IFSC code and type
of account. Finally, upload a copy of the bank statement or
passbook in the place provided.
 GST
Registration – Bank Account
Step 13: Verification of Application
In this step, verify the details submitted in the application before
submission. Once verification is complete, select the
verification checkbox. In the Name of Authorized Signatory
drop-down list, select the name of the authorised signatory.
Enter the place where the form is filled. Finally, digitally sign the
application using Digital Signature Certificate (DSC)/ E-
Signature or EVC. Digitally signing using DSC is mandatory in
case of LLP and Companies.

Step 14: ARN Generated

On signing the application, the success message is displayed.
The acknowledgement shall be received in the registered e-
mail address and mobile phone number. Application Reference
Number (ARN) receipt is sent to the e-mail address and mobile
phone number. Using the GST ARN Number, the status of the
application can be tracked

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rectification is filed by a taxpayer or any other to rectify a
mistake in tax filing.

Q3.Explain the panality short payment or non-

payment of GST?
An offender not paying tax or making short
payments must pay a penalty of 10% of the tax amount due
subject to a minimum of Rs. 10,000. Consider — in case tax
has not been paid or a short payment is made, a
minimum penalty of Rs 10,000 has to be paid. The
maximum penalty is 10% of the tax unpaid.
Q4.What is voluntary tax payment?
Voluntary taxation is a theory that states that taxation should be
a voluntary act. Under the theory, people should have the
option to pay taxes instead of being forced to pay taxes by
their government. Under this theory, people would control how
much they pay and where they spend it. The theory is a part
of Objectivist politics and many libertarian ideologies.
Proponents of some studies assert that individuals will give to
government, paying voluntary taxes to support specific
functions. Donations average 22 percent of an endowment to
government, and 27 percent to private nonprofits, and are
influenced by their cause, level, and perceptions of
effectiveness and efficiency.[1] State lotteries are an example of
a voluntary taxation system.