GST

(GOODS & SERVICES TAX)

ONE NATION, ONE TAX

Name: Harshit Joshi

Class: M.Com(FYIC) semester-6, Section-A
Roll No.: 27312034706
 ACKNOWLEDGEMENT

I am deeply indebted to many people for the successful completion of this

project. I would like to take this opportunity and go on record to thank them for
their help and support. I am thankful to Guru Nanak Dev University and my
department USFS for all the support provided for this project.

I express my deep sense of gratuity and sincere feelings of obligation to my

subject teacher Harsandal mam who has helped me in overcoming many
difficulties and who has imparted me the necessary conceptual knowledge.

I wish to thank all my teachers - for their helpful inputs - insightful comments -
steadfast love and support.
 INDEX

• Concept and Introduction of Tax

• Concept Of Goods and Service Tax (GST)
• The benefits of GST can be summarized as under
• History of GST
• Salient Features of GST
• Types Of Categories under GST rate
• Registration under GST
• Registration process
• E-Way Bill under GST
• Input tax credit
• Composition Scheme
• GST RETURNS
• QUARTERLY RETURN &MONTHLY PAYMENT SCHEME
(QRMP)
• INVOICE FILLING FACILITY (IFF)
 Concept and Introduction of Tax

Taxation is the inherent power of the state to impose and demand contribution upon
persons, properties, or right for the purpose of generating revenues for public purposes.

Taxes are enforced proportional contributions from persons to property levied by the law
making body of the state by virtue of its sovereignty for the support of the government and
all public needs.

Brief History of Taxation:

Tax is today an important source of revenue for the government in all the countries. More
than 3000 years ago, the inhabitants of ancient Egypt and Greece used to pay tax,
consumption taxes and custom duties. Income tax was first introduced in India in 1860 by
James Wilson who become Indians First Finance Member.

In order to meet the losses sustained by the government on account of military mutiny of
1857. In 1918 A New Income Tax bill was passed and which was further again replace in
1922. Finally, The Ministry of Law and Finance and The Income Tax was Passed in 1961 and
brought came in force on 1st April 1962, and this is also known as the Financial Year in
Current Era. i.e. (01.04.2022— 31.03.2023)

Different Types of Taxes In India:

Prevalence of various kinds of taxes is found in India, Taxes in India can be either direct or
indirect. However, the types of taxes even depend on whether a particular tax is being levied
by the central or the state government or any other municipalities. Following are some of the
major taxes levied by Indian government are:

1. Direct Taxes:
It is names so because it is directly paid to the union government of India. As per a survey,
the Republic of India has witnessed a consistent rise in the collection of such taxes over a
period of past years. The visible growth in these tax collections as well as the rates of taxes
reflects a healthy tax along with better administration of taxation. To name a few of the
direct taxes, which are imposed by the Indian government are:
 ➢ Banking cash Transaction Tax
➢ Corporate Tax
➢ Capital Gains Tax
➢ Double Tax Avoidance treaty
➢ Fringe Benefit Tax
➢ Securities Transaction Tax
➢ Personal Income-tax
➢ Tax Incentives

2. Indirect Taxes:

As opposed to the direct taxes, such a tax in the nation is generally levied on some specified
services or some particular goods. An indirect tax is not levied on any particular organization
or an individual. Almost all the activities, which fall within the periphery of the indirect
taxation, are included in the range starting from manufacturing goods and delivery of
services to those that are meant for consumption.

Usually, the indirect taxation in the Indian Republic is a complex procedure that involves laws
and regulations, which are interconnected to each other. These taxation regulations even
include some laws that are specific to some of the states of the country. The organizations
offer services in all or most of the related fields , some of which are as follows:

➢ Anti Dumping Duty

➢ Custom Duty
➢ Excise Duty
➢ Sales Tax
➢ Service Tax
➢ Value Added Tax Or VAT

(3) Local Taxes In India:

The most known tax, which is levied by the local municipal jurisdictions on the entry of goods,
is known as the Entry Tax or the Doctor Tax.

(4) Income Tax:

Income tax in India includes all income except the agricultural income that is levied and
collected by the central government. This particular income is also shared with the states.
The income tax was incorporated in India from the year 1860.

However, after many alteration, finally with the Indian Income-tax Act, 1922, there was a
revolutionary change brought by the All India Income Tax Committee. The significant as after
this the administration of the Income Tax came under the direct control of the central
Government, This act got amended again in the year 1961, and the present Income Tax
regime in India is still following the provisions of the act of 1961.

5) Consumption Tax:

Consumption Tax is applicable on the consumption of any type of goods or service. This
particular tax is based on consumption and not on income. The consumption Tax can be
regarded as a sales tax, as this tax is also regressive in nature like the other pure sales taxes.
However, there are some remedies by which the consumption tax can be made progressive
in nature.

Concept Of Goods and Service Tax (GST)

Introduction to Goods and Service Tax:

GST is one indirect tax for the whole nation, which will make India one unified common
market. GST is a single tax on the supply of goods and services, right from the manufacturer
to the consumer. Credits of input taxes paid at each stage will be available in the subsequent
stage of value addition, which makes GST essentially a tax only on value addition at each
stage. The final consumer will thus bear only the GST charged by the last dealer in the supply
chain, with setoff benefits at all the previous stages.

Meaning Of Goods and Service Tax (GST):

Clauses 366 (12A) of the constitution Bill defines GST as “goods and service tax” means any
tax on supply of goods, or services or both except taxes on the supply of the liquor for human
consumption. Further the clause 366 (26A) of the Bill defines Services means anything other
than Goods.

Thus, it can be said that GST is a comprehensive tax levy on manufacture, sale and
consumption of goods and services at a national level. The proposed tax will be levied on all
transactions involving supply of goods and services, except those which are kept out of its
preview.
The benefits of GST can be summarized as under:

❖For business and industry:

➢ Easy compliance:

Easy compliance: A robust and comprehensive IT system would be the foundation of the GST
regime in India. Therefore, all tax payer services such as registrations, returns, payments,
etc., would be available to the taxpayers online, which would make compliance easy and
transparent.

➢ Uniformity of tax rates and structures:

GST will ensure that indirect tax rates and structures are common across the country,
thereby increasing certainty and ease of doing business. In other words, GST would make
doing business in the country tax neutral, irrespective of the choice of place of doing
business.

➢ Removal of cascading:
A system of seamless tax credits throughout the value chain, and across boundaries of States,
would ensure that there is minimal cascading of taxes. This would reduce hidden costs of
doing business.

➢ Improved competitiveness:
Reduction in transaction costs of doing business would eventually lead to an improved
competitiveness for the trade and industry.
➢ Gain to manufacturers and exporters:
The subsuming of major Central and State taxes in GST, complete and comprehensive setoff
of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost
of locally manufactured goods and services. This will increase the competitiveness of Indian
goods and services in the international market and give boost to Indian exports. The
uniformity in tax rates and procedures across the country will also go a long way in reducing
the compliance cost.

❖For Central and State Governments:

➢ Simple and easy to administer:

Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with
a robust end-to-end IT system, GST would be simpler and easier to administer than all other
indirect taxes of the Centre and State levied so far.

➢ Better controls on leakage:

GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless
transfer of input tax credit from one stage to another in the chain of value addition, there is
an inbuilt mechanism in the design of GST that would incentivize tax compliance by traders.

➢ Higher revenue efficiency:

GST is expected to decrease the cost of collection of tax revenues of the Government, and
will therefore, lead to higher revenue efficiency.
 Why GST?

GST is likely to rationalize irrational, complicated, cumbersome and multiple indirect tax. It
will help stop pilferage and also off load the over loaded tax burden from some organizations,
Improve the tax collection by efficient agency based on scientific and rational system of
assessment rather than current scenario which is largely affected by corruption. Better
management of refunding of taxes and hence savings which is a boon for honest taxpayers
Taxes to be levied at the destination which would make the system less distorting and non-
complicated. The current system involves cumbersome process of assessment and primitive
ways of collection which ultimately leads to encourage tax evasion and also increase cost of
commodities, Introduction of GST would certainly increase the volume of the tax collection
and also put India at par with many major economies of the world.

History of GST

Seven months after the formation of the Modi government, the new Finance Minister Arun
Jaitley introduced the GST Bill in the Lok Sabha, where the BJP had a majority. In February
2015, Jaitley set another deadline of 1st April 2017 to implement GST. Detailed description of
history of GST in India:

2000 - In India, the idea of adopting GST was first suggested by the Atal Bihari Vajpayee
Government in 2000. The state finance ministers formed an Empowered Committee (EC) to
create a structure for GST, based on their experience in designing State VAT. Representatives
from the Centre and states were requested to examine various aspects of the GST proposal
and create reports on the thresholds, exemptions, taxation of inter-state supplies, and
taxation of services. The committee was headed by Asim Dasgupta, the finance minister of
West Bengal. Dasgupta chaired the committee till 2011.

February 2005 - The finance minister, P. Chidambaram, said that the medium-to-long term
goal of the government was to implement a uniform GST structure across the country,
covering the whole production-distribution chain. This was discussed in the budget session
for the financial year 2005-06.

December 2014 - India’s new finance minister, Arun Jaitley, submits the Constitution (122nd
Amendment) Bill, 2014 in the parliament. The opposition demanded that the Bill be sent for
discussion to the standing committee.

Feb 2015 - Jaitley, in his budget speech, indicated that the government is looking to
implement the GST system by 1st April 2016.
August 2015 - The Bill is not passed in the Rajya Sabha, Jaitley mentions that the disruption
had no specific cause.

March 2016 - Jaitley says that he is in agreement with the Congress's demand for the GST
rate not to be set above 18%, But he is not inclined to fix the rate at 18%. In the future if the
Government, in an unforeseen emergency, is required to raise the tax rate, it would have to
take the permission of the parliament. So, a fixed rate of tax is ruled out.

August 2016 - The Congress-led opposition finally agrees to the Government's proposal on
the four broad amendments to the Bill. The Bill was passed in the Rajya Sabha.

September 2016 - The Honorable President of India gives his consent for the Constitution
Amendment Bill to become an Act.

2017 - Four Bills related to GST become Act, following approval in the parliament and the
President's assent: Central GST Bill Integrated GST Bill Union Territory GST Bill GST
(Compensation to States) Bill the GST Council also finalized on the GST rates and GST rules.
The Government declares that the GST Bill will be applicable from 1st July 2017, following a
short delay that is attributed to legal issues.

Goods and Service Tax in India

Goods and Services Tax (GST) is an indirect tax (or consumption tax) imposed in India on the
supply of goods and services. GST is imposed at every step in the production process, but is
meant to be refunded to all parties in the various stages of production other than the final
consumer.

Goods and services are divided into five tax slabs for collection of tax - 0%, 5%, 12%,18% and
28%. 32% However, Petroleum products, alcoholic drinks, electricity, are not taxed under GST
and instead are taxed separately by the individual state governments, as per the previous tax
regime. There is a special rate of 0.25% on rough precious and semi-precious stones and 3%
on gold. In addition, a cess of 22% or other rates on top of 28% GST applies on few items like
aerated drinks, luxury cars and tobacco products, Pre-GST, the statutory tax rate for most
goods was about 26.5%, Post-GST; most goods are expected to be in the 18% tax range.

The tax came into effect from July 1, 2017 through the implementation of One Hundred and
First Amendment of the Constitution of India by the Indian government. The tax replaced
existing multiple flowing taxes levied by the central and state governments.

The tax rates, rules and regulations are governed by the GST Council which consists of the
finance ministers of Centre and all the states, GST is meant to replace a slew of indirect taxes
with a federated tax and is therefore expected to reshape the country's 2.4 trillion dollar
economy, but not without criticism. Trucks’ travel time in interstate movement dropped by
20%, because of no interstate check posts.
 Salient Features of GST:

(i) GST would be applicable on supply of goods or services as against the present concept
of tax on themanufacture of goods or on sale of goods or on provision of services.

(ii) GST would be a destination based tax as against the present concept of origin based
tax.

(iii) It would be a dual GST with the Centre and the States simultaneously levying it on a
common base. The GST to be levied by the Centre would be called Central GST (CGST) and
that to be levied by the States would be called State GST (SGST).
(iv) An Integrated GST (IGST) would be levied on inter‐State supply (including stock
transfers) of goods orservices. This would be collected by the Centre so that the credit chain
is not disrupted.
(v) Import of goods or services would be treated as inter‐State supplies and would be
subject to IGST in addition to the applicable customs duties.
(vi) CGST, SGST & IGST would be levied at rates to be mutually agreed upon by the
Centre and the States under the aegis of the GST Council.
(vii) GST would replace the following taxes currently levied and collected by the Centre:
a) Central Excise duty
b) Duties of Excise (Medicinal and Toilet Preparations)
c) Additional Duties of Excise (Goods of Special Importance)
d) Additional Duties of Excise (Textiles and Textile Products)
e) Additional Duties of Customs (commonly known as CVD)
f) Special Additional Duty of Customs (SAD)
g) Service Tax
h) Cesses and surcharges insofar as far as they relate to supply of goods or services

(viii) State taxes that would be subsumed within the GST are:
a) State VAT
b) Central Sales Tax
c) Purchase Tax
d) Luxury Tax
e) Entry Tax (All forms)
f) Entertainment Tax (not levied by the local bodies)
g) Taxes on advertisements
h) Taxes on lotteries, betting and gambling
i) State cesses and surcharges insofar as far as they relate to supply of goods or services
(ix) GST would apply to all goods and services except Alcohol for human consumption.
(x) GST on petroleum products would be applicable from a date to be recommended by the
Goods & Services Tax Council.
(xi) Tobacco and tobacco products would be subject to GST. In addition, the Centre
could continue tolevy Central Excise duty.
(xii) A common threshold exemption would apply to both CGST and SGST. Taxpayers with
a turnover below it would be exempt from GST. A compounding option (i.e.to pay tax at a
flat rate without credits)would be available to small taxpayers below a certain threshold.
The threshold exemption and compounding provision would be optional.
(xiii) The list of exempted goods and services would be kept to a minimum and it would
be harmonized for the Centre and the States as far as possible.
(xiv) Exports would be zero‐rated.
(xv) Credit of CGST paid on inputs may be used only for paying CGST on the output and
the credit of SGST paid on inputs may be used only for paying SGST. In other words, the
two streams of input tax credit (ITC) cannot be cross utilised, except in specified
circumstances of inter‐State supplies, for payment of IGST. The credit would be
permitted to be utilised in the following manner:
a) ITC of CGST allowed for payment of CGST;
b) ITC of SGST allowed for payment of SGST;
c) ITC of CGST allowed for payment of CGST & IGST in that order;
d) ITC of SGST allowed for payment of SGST & IGST in that order;
e) ITC of IGST allowed for payment of IGST, CGST & SGST in that order.
(xvi) ITC of Additional Tax would not be permitted.
(xvii) Accounts would be settled periodically between the Centre and the State to ensure
that the SGSTused for payment of IGST is transferred by the Centre to the Destination
State where the goods or services are eventually consumed. Similarly, the IGST used for
payment of SGST would be transferred bythe originating State to the Centre.
(xviii) The laws, regulations and procedures for levy and collection of CGST and
SGST would be harmonized to the extent possible.

Types Of Categories under GST rate:

The GST tax is levied based on Revenue Neutral Rate. For the purpose of imposing GST tax in
India, the goods and services are categorized in to four.

These are four categories of goods and services are follows:

Exempted Categories under GST in India:

The GST and council and other GST authorities notifies list of exempted goods. Such goods
are not fallen under payment of GST tax. The authorities may modify or amend the list time
to time by adding deleting any item if required by notification to public.
Essential Goods and Services for GST in India:

Essential Category of goods and services are charged very lower GST rate, Essential goods
and services are the goods and services for necessary items under basic importance.

Standard Goods and services for GST in India:

A major share of GST tax payers falls under this category of Standard Goods and Service. A
Standard rate is charged against the goods and services under this category.

Special Goods and Services for GST tax Levy:

Under special category of goods and services, GST rates would be high. Precious metals
including luxury items of goods and services fall under special goods and services for GST rate
implementations.

Rate of Tax:
GST has been structured in a way that essential services and food items are placed in the
lower tax brackets, while luxury services and products have been placed in the higher tax
bracket.

The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%,
18% and 28% under GST. This is aside the tax on gold that is kept at 3% and rough precious
and semi-precious stones that are placed at a special rate of 0.25% under GST.

A total of 81% of all the goods and services fall below or in the 18% tax slab. This means 7%
of the items come under the exempted list, 14% of the items attract a 5% tax, 17% of the
items attract a 12% tax, and 43% of the items attract an 18 % tax slab, while only 19% of the
items fall under the highest slab of 28% in the new regime. Below is a list of some of the
products that will be a part of the respective slabs:

Exempted GST Rate Slab (No Tax)

7% goods and services fall under this category. Some of these that are of regular
consumption include fresh fruits and vegetables, milk, butter milk, curd, natural honey, flour,
besan, bread, all kinds of salt, jaggery, hulled cereal grains, fresh meat, fish, chicken, eggs,
along with bindi, sindoor, kajal, bangles, drawing and coloring books, stamps, judicial papers,
printed books, newspapers, jute and handloom, hotels and lodges with tariff below INR 1000
and so on.

5% GST Rate Slab

14% goods and services fall under this category. Some of these include apparel below INR
1000 and footwear below INR 500, packaged food items, cream, skimmed milk powder,
branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, cashew
nut, cashew nut in shell, raisin, ice, fish fillet, kerosene, coal, medicine, agarbatti (incense
sticks), postage or revenue stamps, fertilizers, rail and economy class air tickets, small
restaurants, and so on.

12% GST Rate Slab

Edibles like frozen meat products, butter, cheese, ghee, dry fruits in packaged form, animal
fat, sausages, fruit juices, namkeen, ketchup & sauces, ayurvedic medicines, all diagnostic kits
and reagents, cellphones, spoons, forks, tooth powder, umbrella, sewing machine,
spectacles, indoor games like playing cards, chess board, carom board, ludo, apparels above
INR 1000, non-AC restaurants, business class air ticket, state-run lottery, work contracts and
so on attract a 12% GST. 17% of goods and services fall under this category.
18% GST Rate Slab

43% of goods and services fall under this category. Pasta, biscuits, cornflakes, pastries and
cakes, preserved vegetables, jams, soups, ice cream, mayonnaise, mixed condiments and
seasonings, mineral water, footwear costing more than INR 500,camera, speakers, monitors,
printers, electrical transformer, optical fiber, tissues, sanitary napkins, notebooks, steel
products, headgear and its parts, aluminum foil, bamboo furniture, AC restaurants that serve
liquor, restaurants in five-star and luxury hotels, telecom services, IT services, branded
garments and financial services and so on attract an 18% GST.

28% GST Rate Slab

19% of goods and services fall under this category. The rest of edibles like chewing gum, bidi,
molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan
masala, aerated water, personal care items like deodorants, shaving creams, after shave, hair
shampoo, dye, sunscreen, paint, water heater, dishwasher, weighing machine, washing
machine, vacuum cleaner, automobiles, motorcycles, 5-star hotel stays, race club betting,
private lottery and movie tickets above INR 100 etc. have been clubbed together under the
28% GST slab.

Registration under GST

The provision of GST registration has been prescribed under chapter VI of the CGST Act, 2017
and Section 22 to Section 30 of the CGST Act, deals with the registration by every supplier of
goods and services.

Advantages of Registration:
1. Registration is a basic requirement to run the network of GST.

2. Registration is an Authority available to the Registered Person to collect tax on behalf of

the Government.

3. Registration is a source by which the Registered Person can claim input Tax Credit.

4. Seamless flow of Input Tax Credit among the Registered Persons in national level is
happened due to this Registration.

5. Registration is a tool for the Government. By this Tool the Government analysis the
economy through data available in accounts of Registered Persons.
REGISTRATION LIMIT:
There is an exemption limit for registration under Goods and Services Tax (GST) in India. If the
annual turnover of any person exceeds the exemption limit then he will have to enroll himself
under the Goods and Services Tax regime. This is also known as a GST registration limit or GST
threshold.

A lot of queries have been revolving around the GST threshold due to frequent changes in the
law. This article has been republished with the latest amendments to the GST threshold.

Registration limit in case of goods:

GST registration is mandatory for every person who is engaged in the exclusive supply of
goods and his aggregate turnover exceeds Rs 40 lakh in a financial year. Earlier, the limit was
20 lakhs for a supplier of goods. However, the same was increased to 40 lakhs
vide notification No. 10/2019-Central Tax, dated 07.03.2019.
The enhanced exemption figure of 40 lakhs shall not apply to the following category of persons:

• Service providers
• Persons engaged in making supplies of ice cream and other edible ice, whether or not
containing cocoa [2105 00 00], Pan masala [2106 90 20] and all goods of Chapter 24,
i.e. Tobacco and manufactured tobacco substitutes.
• Persons required to obtain compulsory GST registration
• Persons obtained voluntary registration under GST
• Persons engaged in making intra-State supplies in the States of Arunachal Pradesh,
Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura,
Uttarakhand and the Special Category States as per section 22.

Registration limit for services:

The registration limit for service providers in GST in India is Rs. 20 lakhs. There has been no
modification in the threshold for service providers. They will have to get registered under GST
if the aggregate value of services in a financial year exceeds 20 lakhs.

Registration limit for Special Category States:

The registration limit will be Rs 10 lakhs if the person is carrying out business in the Special
Category States.

As per Article 279A(4)(g) of the Constitution, there are 11 Special Category States, namely,
States of Arunachal Pradesh, Assam, Jammu and Kashmir1, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. However, as per the
 explanation (iii) to section 22, for the purposes of registration under GST, only Mizoram,
Tripura, Manipur and Nagaland are the Special Category States.

Therefore, the GST exemption threshold of Rs 10 lakh will be applicable for Mizoram, Tripura,
Manipur and Nagaland.

REGISTRATION PROCESS
1. Application for registration
(1) Every person (other than a non-resident taxable person, a person supplying online
informationand data base access or retrieval services from a place outside India to a non-
taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax
Act, a person required to deduct taxat source under section 51 and a person required to
collect tax at source under section 52) who is liableto be registered under sub-section (1) of
section 25 and every person seeking registration under sub- section (3) of section 25
(hereinafter referred to in this Chapter as “the applicant”) shall, before applying for
registration, declare his Permanent Account Number (PAN), mobile number, e-mail address,
State or Union territory in Part A of FORM GST REG-01 on the Common Portal either directly
or througha Facilitation Centre notified by the Commissioner:
Provided that a Special Economic Zone unit or Special Economic Zone developer shall make a
separateapplication for registration as a business vertical distinct from its other units located
outside the SpecialEconomic Zone.
(2) (a) The PAN shall be validated online by the Common Portal from the database
maintainedby the Central Board of Direct Taxes constituted under the Central Boards
of Revenue Act, 1963 (54 of 1963);
(b) The mobile number declared under sub-rule (1) shall be verified through a
one-time password sent to the said mobile number; and
(c) The e-mail address declared under sub-rule (1) shall be verified through a
separate one-time password sent to the said e-mail address.
(3) On successful verification of the PAN, mobile number and e-mail address, a
temporary reference number shall be generated and communicated to the applicant on the
said mobile number ande-mail address.
(4) Using the reference number generated under sub-rule (3), the applicant shall
electronically submit an application in Part B of FORM GST REG-01, duly signed, along with
documents specifiedin the said Form at the Common Portal, either directly or through a
Facilitation Centre notified by the Commissioner.
(5) On receipt of an application under sub-rule (4), an acknowledgement shall be issued
electronically to the applicant in FORM GST REG-02.
(6) A person applying for registration as a casual taxable person shall be given a
temporary reference number by the Common Portal for making advance deposit of tax in
accordance with the provisions of section 27 and the acknowledgement under sub-rule (5)
shall be issued electronically onlyafter the said deposit in the electronic cash ledger.

2. Verification of the application and approval

(1) The application shall be forwarded to the proper officer who shall examine the
application and the accompanying documents and if the same are found to be in
order, approve the grant of registrationto the applicant within three working days
from the date of submission of application.
Where the application submitted under rule 1 is found to be deficient, either in terms of any
information or any document required to be furnished under the said rule, or where the
proper officer requires any clarification with regard to any information provided in the
application or documents furnished therewith, he may issue a notice to the applicant
electronically in FORM GST REG-03 within three working days from the date of submission
of application and the applicant shall furnish such clarification, information or documents
sought electronically, in FORM GST REG-04, within seven working days from the date of
receipt of such intimation.
Explanation.- The clarification includes modification or correction of particulars declared in
the application for registration, other than PAN, State, mobile number and e-mail address
declared in PartA of FORM GST REG-01.
(2) Where the proper officer is satisfied with the clarification, information or
documents furnishedby the applicant, he may approve the grant of registration to
the applicant within seven working days from the date of receipt of such clarification
or information or documents.
(3) Where no reply is furnished by the applicant in response to the notice issued
under sub-rule (2)within the prescribed period or where the proper officer is not
satisfied with the clarification, information or documents furnished, he shall, for
reasons to be recorded in writing, reject such application and inform the applicant
electronically in FORM GST REG-05.
(4) If the proper officer fails to take any action -
(a) within three working days from the date of submission of application, or
(b) within seven working days from the date of receipt of clarification,
information ordocuments furnished by the applicant under sub-rule (2),
the application for grant of registration shall be deemed to have been approved.

3. Issue of registration certificate

(1) Subject to the provisions of sub-section (12) of section 25, where the application for
grant of registration has been approved under rule 2, a certificate of registration in FORM
GST REG-06 showing the principal place of business and additional place(s) of business shall
be made available to the applicant on the Common Portal and a Goods and Services Tax
Identification Number (hereinafterin these rules referred to as “GSTIN”) shall be assigned in
the following format:
(a) two characters for the State code;
(b) ten characters for the PAN or the Tax Deduction and Collection Account Number;
(c) two characters for the entity code; and
(d) one checksum character.
(2) The registration shall be effective from the date on which the person becomes liable
to registration where the application for registration has been submitted within thirty days
from such date.
(3) Where an application for registration has been submitted by the applicant after thirty
days fromthe date of his becoming liable to registration, the effective date of registration
shall be the date of grantof registration under sub-rule (1) or sub-rule (3) or sub-rule (5) of
rule 2.
(4) Every certificate of registration made available on the Common Portal shall be digitally
signed by the proper officer under the Act.
(5) Where the registration has been granted under sub-rule (5) of rule 2, the applicant shall
be communicated the registration number and the certificate of registration under sub-rule
(1), duly signed,shall be made available to him on the common portal within three days after
expiry of the period specified in sub-rule (5) of rule 2.

4. Separate registration for multiple business verticals within a

State or a Union territory
(1) Any person having multiple business verticals within a State or a Union territory,
requiring a separate registration for any of its business verticals under sub-section (2) of
section 25 shall be grantedseparate registration in respect of each of the verticals subject to
the following conditions:
(a) Such person has more than one business vertical as defined in clause (18) of
section 2of the Act;
(b) No business vertical of a taxable person shall be granted registration to pay
tax under section 10 if any one of the other business verticals of the same person is
paying tax under section 9.
Explanation.- Where any business vertical of a registered person that has been
granted a separate registration becomes ineligible to pay tax under section 10, all
other business verticalsof the said person shall become ineligible to pay tax under
the said section.
(c) All separately registered business verticals of such person shall pay tax under
this Acton supply of goods or services or both made to another registered business
vertical of such person and issue a tax invoice for such supply.
(2) A registered person eligible to obtain separate registration for business verticals may
submit a separate application in FORM GST REG-01 in respect of each such vertical.
(3) The provisions of rule 2 and rule 3 relating to verification and grant of registration
shall, mutatismutandis, apply to an application submitted under this rule.

5. Grant of registration to persons required to deduct tax at

source or to collect tax at source
(1) Any person required to deduct tax in accordance with the provisions of section 51 or
a person required to collect tax at source in accordance with the provisions of section 52
shall electronically submit an application, duly signed, in FORM GST REG-07 for grant of
registration through the Common Portal, either directly or from a Facilitation Centre notified
by the Commissioner.
(2) The proper officer may grant registration after due verification and issue a certificate
of registration in FORM GST REG-06 within three working days from the date of submission
of application.
(3) Where, upon an enquiry or pursuant to any other proceeding under the Act, the
proper officer is satisfied that a person to whom a certificate of registration in FORM GST
REG-06 has been issuedis no longer liable to deduct tax at source under section 51 or collect
tax at source under section 52, thesaid officer may cancel the registration issued under sub-
rule (2) and such cancellation shall be communicated to the said person in FORM GST REG-
08:
Provided that the proper officer shall follow the procedure prescribed in rule 14 for
cancellationof registration.

6. Grant of registration to non-resident taxable person

(1) A non-resident taxable person shall electronically submit an application, along with
a valid passport, for registration, duly signed, in FORM GST REG-09, at least five days prior
to the commencement of business at the Common Portal either directly or through a
Facilitation Centre notified by the Commissioner.
(2) A person applying for registration as a non-resident taxable person shall be given a
temporary reference number by the Common Portal for making an advance deposit of tax
under section 27 and the acknowledgement under sub-rule (5) of rule 1 shall be issued
thereafter.
(3) The person applying for registration under sub-rule (1) shall make an advance deposit
of tax inan amount equivalent to the estimated tax liability of such person for the period for
which registration is sought, as specified in section 27.
(4) The provisions of rule 2 and rule 3 relating to verification and grant of registration shall
mutatis mutandis, apply to an application submitted under this rule.
Explanation. – The application for registration made by a non-resident taxable person shall
be signed by his authorized signatory who shall be a person resident in India having a valid
PAN.
6A. Grant of registration to a person supplying online information
and data base access or retrieval services from a place outside
India to a non-taxable online recipient
(1) Any person supplying online information and data base access or retrieval services
from a place outside India to a non-taxable online recipient shall electronically submit an
application for registration,duly signed, in FORM GST REG-09A, at the Common Portal.
(2) The applicant referred to in sub-rule (1) shall be granted registration, in FORM GST REG-
06, subject to such conditions and restrictions and by such officer as may be notified by the
Central Government on the recommendations of the Council.

7. Extension in period of operation by casual taxable person and

non-resident taxable person
(1) Where a registered casual taxable person or a non-resident taxable person intends
to extend theperiod of registration indicated in his application of registration, an application
in FORM GST REG-10 shall be furnished electronically through the Common Portal, either
directly or through a FacilitationCentre notified by the Commissioner, by such person before
the end of the validity of registration granted to him.
(2) The application under sub-rule (1) shall be acknowledged only on payment of the
amount specified in sub-section (2) of section 27.

8. Suo moto registration

(1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings
under theAct, the proper officer finds that a person liable to registration under the Act has
failed to apply for suchregistration, such officer may register the said person on a temporary
basis and issue an order in FORMGST REG-11.
(2) The registration granted under sub-rule (1) shall be effective from the date of order
granting registration.
(3) Every person to whom a temporary registration has been granted under sub-rule (1)
shall, withinninety days from the date of the grant of such registration, submit an application
for registration in theform and manner provided in rule 1 or rule 5 unless the said person has
filed an appeal against the grantof temporary registration, in which case the application for
registration shall be submitted within thirtydays from the date of issuance of order upholding
the liability to registration by the Appellate Authority.
(4) The provisions of rule 2 and rule 3 relating to verification and issue of certificate of
registrationshall, mutatis mutandis, apply to an application submitted under sub-rule (3).
(5) The GSTIN assigned pursuant to verification under sub-rule (4) shall be effective from
the dateof order granting registration under sub-rule (1).
9. Assignment of unique identity number to certain special
entities
(1) Every person required to be granted a unique identity number under sub-section (9) of
section 25 may submit an application, electronically in FORM GST REG-12, duly signed, in the
manner specifiedin rule 1 at the Common Portal, either directly or through a Facilitation
Centre, notified by the Board or Commissioner.
(2) The proper officer may, upon submission of an application in FORM GST REG-12 or after
filling up the said form, assign a Unique Identity Number to the said person and issue a
certificate in FORM GST REG-06 within three working days from the date of submission of
application.

10. Display of registration certificate and GSTIN on the name

board
(1) Every registered person shall display his certificate of registration in a prominent
location at his principal place of business and at every additional place or places of business.
(2) Every registered person shall display his GSTIN on the name board exhibited at the
entry of his principal place of business and at every additional place or places of business.

11. Amendment of registration

(1) Where there is any change in any of the particulars furnished in the application for
registrationin FORM GST REG-01 or FORM GST REG-07 or FORM GST REG-09 or FORM GST
REG- 09A or FORM GST-REG-12, as the case may be, either at the time of obtaining
registration or as amended from time to time, the registered person shall, within fifteen days
of such change, submit an application, duly signed, electronically in FORM GST REG-13, along
with documents relating to such change at the Common Portal either directly or through a
Facilitation Centre notified by the Commissioner.
(2) (a) Where the change relates to-
(i) legal name of business;

(ii) address of the principal place of business or any additional place of business;
or
(iii) addition, deletion or retirement of partners or directors, Karta, Managing
Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible
for day to day affairsof the business,-
which does not warrant cancellation of registration under section 29, the proper officer shall
approve the amendment within fifteen working days from the date of receipt of application
in FORM GST REG-13 after due verification and issue an order in FORM GST REG-14
electronically and such amendment shall take effect from the date of occurrence of the
event warranting amendment.
(b) The change relating to sub-clause (i) and sub-clause (iii) of clause (a) in any State or Union
territory shall be applicable for all registrations of the registered person obtained under
these rules on the same PAN.
(c) Where the change relates to any particulars other than those specified in clause (a),
the certificate of registration shall stand amended upon submission of the application in
FORM GST REG-13 on the Common Portal:
Provided that any change in the mobile number or e-mail address of the authorised signatory
submittedunder rule 1, as amended from time to time, shall be carried out only after online
verification through the Common Portal in the manner provided under the said rule.
(d) Where a change in the constitution of any business results in change of the
Permanent Account Number (PAN) of a registered person, the said person shall apply for
fresh registration in FORM GSTREG-01.
(3) Where the proper officer is of the opinion that the amendment sought under clause
(a) of sub- rule (2) is either not warranted or the documents furnished therewith are
incomplete or incorrect, he may, within fifteen working days from the date of receipt of the
application in FORM GST REG-13, serve a notice in FORM GST REG-03, requiring the
registered person to show cause, within seven working days of the service of the said notice,
as to why the application submitted under sub-rule (1) shall not be rejected.
(4) The taxable person shall furnish a reply to the notice to show cause, issued under sub-
rule 3, in
FORM GST REG-04 within seven working days from the date of the service of the said notice.
(5) Where the reply furnished under sub-rule (4) is found to be not satisfactory or where no
reply is furnished in response to the notice issued under sub-rule (3) within the period
prescribed in sub-rule (4), the proper officer shall reject the application submitted under
sub-rule (1) and pass an order in FORM GST REG -05.
(6) If the proper officer fails to take any action-
(a) within fifteen working days from the date of submission of application, or

(b) within seven working days from the date of receipt of reply to the notice to
show causeunder sub-rule (4),
the certificate of registration shall stand amended to the extent applied for and the
amended certificateshall be made available to the registered person on the Common Portal.

12. Application for cancellation of registration

A registered person, other than a person to whom a unique identification number has been
granted under rule 9 or a person to whom registration has been granted under rule 5, seeking
cancellation of hisregistration under sub-section (1) of section 29 shall electronically submit
an application in FORM GST REG-14, including therein the details of inputs held in stock or
inputs contained in semi-finishedor finished goods held in stock and of capital goods held in
stock on the date from which cancellation of registration is sought, liability thereon, details
of the payment, if any, made against such liability and may furnish, along with the
application, relevant documents in support thereof at the Common Portal within thirty days
of occurrence of the event warranting cancellation, either directly or through aFacilitation
Centre notified by the Commissioner:
Provided that no application for cancellation of registration shall be considered in case of a
taxable person, who has registered voluntarily, before the expiry of a period of one year from
the effective dateof registration.

13. Registration to be cancelled in certain cases

The registration granted to a person is liable to be cancelled if the said person—
(a) does not conduct any business from the declared place of business; or

(b) issues invoice or bill without supply of goods or services in violation of the provisions of
this Act, or the rules made thereunder.

14. Cancellation of registration

(1) Where the proper officer has reasons to believe that the registration of a person is liable
to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-
16, requiring him to show cause within seven working days from the date of service of such
notice as to why his registration should not be cancelled.
(2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM
REG–17
within the period prescribed in the said sub-rule.
(3) Where a person who has submitted an application for cancellation of his registration is
no longer liable to be registered or his registration is liable to be cancelled, the proper officer
shall issue an orderin FORM GST REG-18, within thirty days from the date of application
submitted under sub-rule (1)of rule 12 or, as the case may be, the date of reply to the show
cause issued under sub-rule (1), cancel the registration, with effect from a date to be
determined by him and notify the taxable person, directingto pay arrears of any tax, interest
or penalty including the amount liable to be paid under sub-section(5)of section 29.
(4) Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer
shall dropthe proceedings and pass an order in FORM GST REG –19.
(5) The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a
deceased proprietor, as if the application had been submitted by the proprietor himself.
15. Revocation of cancellation of registration
(1) A registered person, whose registration is cancelled by the proper officer on his own
motion, may submit an application for revocation of cancellation of registration, in FORM
GST REG-20, to such proper officer, within thirty days from the date of service of the order of
cancellation of registration at the Common Portal either directly or through a Facilitation
Centre notified by the Commissioner:
Provided that no application for revocation shall be filed if the registration has been
cancelled for the failure of the taxable person to furnish returns, unless such returns are filed
and any amount due as tax,in terms of such returns has been paid along with any amount
payable towards interest, penalties and late fee payable in respect of the said returns.
(2)(a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there
are sufficient grounds for revocation of cancellation of registration, he shall revoke the
cancellation of registration by an order in FORM GST REG-21 within thirty days from the date
of receipt of the application and communicate the same to the applicant
(b) The proper officer may, for reasons to be recorded in writing, under circumstances other
than those specified in clause (a), by an order in FORM GST REG-05, reject the application for
revocationof cancellation of registration and communicate the same to the applicant.
(3) The proper officer shall, before passing the order referred to in clause (b) of sub-rule
(2), issuea notice in FORM GST REG–22 requiring the applicant to show cause as to why the
application submitted for revocation under sub-rule (1) should not be rejected and the
applicant shall furnish the reply within seven working days from the date of the service of
notice in FORM GST REG-23.
(4) Upon receipt of the information or clarification in FORM GST REG-23, the proper officer
may proceed to dispose of the application in the manner specified in sub-rule (2) within thirty
days from thedate of receipt of such information or clarification from the applicant.

16. Migration of persons registered under the existing law

(1) (a) Every person, other than a person deducting tax at source or an Input Service
Distributor, registered under an existing law and having a Permanent Account Number issued
under the Income-tax Act, 1961 (Act 43 of 1961) shall enrol on the Common Portal by
validating his e-mail address and mobile number, either directly or through a Facilitation
Centre notified by the Commissioner.
(b) Upon enrolment under clause (a), the said person shall be granted registration on a
provisional basis and a certificate of registration in FORM GST REG-25, incorporating the
GSTIN therein, shall be made available to him on the Common Portal:
Provided that a taxable person who has been granted multiple registrations under the
existing law on the basis of a single PAN shall be granted only one provisional registration
under the Act:
Provided further that a person having centralized registration under Chapter V of the Finance
Act, 1994shall be granted only one provisional registration in the State or Union territory in
which he is registeredunder the existing law. (CGST Rules only)
(2)(a) Every person who has been granted a provisional registration under sub-rule (1) shall
submit an application electronically in FORM GST REG–24, duly signed, along with the
information and documents specified in the said application, on the Common Portal either
directly or through a Facilitation Centre notified by the Commissioner.
(b) The information asked for in clause (a) shall be furnished within a period of three months
or withinsuch further period as may be extended by in this behalf.
(c) If the information and the particulars furnished in the application are found, by the
proper officer, to be correct and complete, a certificate of registration in FORM GST REG-06
shall be madeavailable to the registered person electronically on the Common Portal.
(3) Where the particulars or information specified in sub-rule (2) have either not been
furnished or not found to be correct or complete, the proper officer shall cancel the
provisional registration grantedunder sub-rule (1) and issue an order in FORM GST REG-26:
Provided that no provisional registration shall be cancelled as aforesaid without serving a
notice to showcause in FORM GST REG-27 and without affording the person concerned a
reasonable opportunity of being heard:
Provided further that the show cause notice issued in FORM GST REG-27 can be vacated by
issuingan order in FORM GST REG-19, if it is found, after affording the person an opportunity
of being heard, that no such cause exists for which the notice was issued.
(4) Every person registered under any of the existing laws, who is not liable to be
registered under the Act may, within thirty days from the appointed day, at his option,
submit an application electronically in FORM GST REG-28 at the Common Portal for
cancellation of the registration granted to him and the proper officer shall, after conducting
such enquiry as deemed fit, cancel the saidregistration.

17. Physical verification of business premises in certain cases

Where the proper officer is satisfied that the physical verification of the place of business of a
registeredperson is required after grant of registration, he may get such verification done
and the verification report along with other documents, including photographs, shall be
uploaded in FORM GST REG-29on the Common Portal within fifteen working days following
the date of such verification.

18. Method of authentication

(1) All applications, including reply, if any, to the notices, returns, appeals or any other
documentrequired to be submitted under these rules shall be so submitted electronically at
the Common Portal with digital signature certificate or through e-signature as specified
 under the Information Technology Act, 2000 (21 of 2000) or through any other mode of
signature notified by the Board in this behalf.
(2) Each document including the return furnished online shall be signed -
(a) in the case of an individual, by the individual himself or by some other person duly
authorised by him in this behalf, and where the individual is mentally incapacitated from
attending to his affairs,by his guardian or by any other person competent to act on his
behalf;
(b) in the case of a Hindu Undivided Family, by a Karta and where the Karta is absent
from India or is mentally incapacitated from attending to his affairs, by any other adult
member of such familyor by the authorised signatory of such Karta;
(c) in the case of a company, by the chief executive officer or authorised signatory thereof;

(d) in the case of a Government or any Governmental agency or local authority, by an

officer authorised in this behalf;
(e) in the case of a firm, by any partner thereof, not being a minor or authorised signatory;

(f) in the case of any other association, by any member of the association or persons or
authorised signatory;
(g) in the case of a trust, by the trustee or any trustee or authorised signatory; or

(h) in the case of any other person, by some person competent to act on

his behalf,or by a person authorised in accordance with the provisions of

section 48.
(3) All notices, certificates and orders under these Rules shall be issued electronically by
the proper officer or any other officer authorised to issue any notice or order, through digital
signature certificate specified under the Information Technology Act, 2000 (21 of 2000).

E-Way Bill under GST

E-way bill is an electronic document generated on the GST portal evidencing movement of
goods. It has two Components-Part A comprising of details of GSTIN of recipient, place of
delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport
document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number
or Bill of Lading Number) and reasons for transportation; and Part B comprising of
transporter details (Vehicle number). As per Rule 138 of the CGST Rules, 2017,every
registered person who causes movement of goods (which may not necessarily be on account
of supply) of consignment value more than Rs. 50000/- is required to furnish above
mentioned information in part A of e-way bill. The part B containing transport details helps in
generation of e-way bill.
E-way bill is to be generated by the consignor or consignee himself if the transportation is
being done in own/hired conveyance or by railways by air or by Vessel. If the goods are
handed over to a transporter for transportation by road, E-way bill is to be generated by the
Transporter. Where neither the consignor nor consignee generates the e-way bill and the
value of goods is more than Rs.50,000/- it shall be the responsibility of the transporter to
generate it. Further, it has been provided that where goods are sent by a principal located in
one State to a job worker located in any other State, the e-way bill shall be generated by the
principal irrespective of the value of the consignment. Also, where handicraft goods are
transported from one State to another by a person who has been exempted from the
requirement of obtaining registration, the e-way bill shall be generated by the said person
irrespective of the value of the consignment.
Specimen of E-way:

Input tax credit

The proposed dual Goods and Service tax (GST) system would be designed in such a manner
that the Central GST chain and the State GST chain would be independent of each other. This
would imply that a dealer would not be able to use the input tax credit available under the
Central GST chain in the State level GST chain. The Central GST chain is likely to integrate the
existing excise duty and service taxes levied at the central level. The State level GST chain is
likely to integrate the current State-level VAT, other local levies and services tax on certain
specific services on which States may get the powers to levy service tax. There will be full
input tax credit in the Central GST chain and also in the State level chain but there would be
no usability of Central GST into the State-level GST chain. Input tax credit would be allowed
only at one chain and no carry forward of the credit from one chain to the other would be
allowed. The structure would only address the cascading effect only in the respective chain
and not in the parallel one. Cross utilization of credit of CGST between goods and services
would be allowed. Similarly, the facility of cross utilization of credit will be available in case of
SGST.
Input credit means at the time of paying tax on output, you can reduce the tax you have
already paid on inputs and pay the balance amount.

Here's how-

When you buy a product/service from a registered dealer you pay taxes on the purchase. On
selling, you collect the tax. You adjust the taxes paid at the time of purchase with the amount
of output tax (tax on sales) and balance liability of tax (tax on sales minus tax on purchase)
has to be paid to the government. This mechanism is called utilization of input tax credit.

For example- you are a manufacturer: a. Tax payable on output (FINAL PRODUCT) is Rs 450 b.
Tax paid on input (PURCHASES) is Rs 300 ¢. You can claim INPUT CREDIT of Rs 300 and you
only need to deposit Rs 150 in taxes.

Who can claim ITC?

ITC can be claimed by a person registered under GST only if he fulfills ALL
the conditions as prescribed.

a. The dealer should be in possession of tax invoice

b. The said goods/services have been received

c. Returns have been filed,

d. The tax charged has been paid to the government by the supplier.

¢. When goods are received in installments ITC can be claimed only when the last lot is
received.

f. No ITC will be allowed if depreciation has been claimed on tax component of a capital good

Composition Scheme
Composition/Compounding Scheme for the purpose of GST will have an upper ceiling on
gross annual turnover and a floor tax rate with respect to gross annual turnover. In particular,
there would be a compounding cut-off at Rs. 50 lakh of gross annual turnover and a floor rate
of 0.5% across the States. The scheme would also allow option for GST registration for
dealers with turnover below the compounding cut-off.

Who can opt for Composition Scheme?

The composition scheme limit under GST varies depending on the type of business you have.

• For manufacturers and traders: As a newly registered business, your turnover should not
exceed Rs. 1.5 crore in the current financial year. If you have already registered, your
turnover must not exceed Rs. 1.5 crore in the previous financial year.
• For restaurants not serving alcohol: The above terms apply here as well.
• For service providers: As a newly registered< business, your turnover should not exceed Rs.
50 lakh in the current financial year. If you have already registered, your turnover must not
exceed Rs. 50 crore in the previous financial year.

Additionally, the Rs. 1.5 crore cap is further limited in the special category states to Rs. 75
lakh. Further, suppose your turnover exceeds the specified composition scheme limit in a
financial year. In that case, you will have to convert to the regular GST payment mechanism
to comply with the GST composition scheme rules.

Who cannot opt for Composition Scheme?

The following people cannot opt for the scheme:

• Supplier of services other than restaurant related services

• Manufacturer of ice cream, pan masala, or tobacco
• A person making inter-state supplies
• A casual taxable person or a non-resident taxable person
• Businesses which supply goods through an e-commerce operator
What are the conditions for availing Composition Scheme?
The following conditions must be satisfied in order to opt for composition scheme:

• No Input Tax Credit can be claimed by a dealer opting for composition scheme

• The dealer cannot supply GST exempted goods

• The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge
Mechanism

• If a taxable person has different segments of businesses (such as textile,

electronic accessories, groceries, etc.) under the same PAN, they must register all such
businesses under the scheme collectively or opt out of the scheme.

• The taxpayer has to mention the words ‘composition taxable person’ on every notice
or signboard displayed prominently at their place of business.

• The taxpayer has to mention the words ‘composition taxable person’ on every bill of
supply issued by him.

• As per the CGST (Amendment) Act, 2018, a manufacturer or trader can also supply
services to an extent of ten percent of turnover, or Rs.5 lakhs, whichever is higher. This
amendment will be applicable from the Ist of Feb, 2019. Earlier the limit was up to Rs 5
lakhs.

Taxpayer Identification number:

Each taxpayer will be allotted a PAN inked taxpayer identification number with a total of 13
total digits. This would bring the GST PAN-linked system in line with the prevailing PAN-based
system for Income tax, facilitating data exchange and taxpayer compliance.
Documentation and compliance:

Due to the dual structure of the GST, the assesse will be required to maintain separate
accounts for Central GST and State GST. There will be one periodical return for both CGST
and SGST with one copy each to be submitted to the respective GST authority
 GST RETURNS
Return Form Description Frequency Due Date

GSTR-1 Details of outward supplies of Monthly 11th of the next month.

taxable goods and/or services
affected.
Quarterly (If 13th of the month
opted under succeeding the quarter.
the QRMP
scheme)

IFF (Optional by Details of B2B supplies of Monthly (for 13th of the next month.
taxpayers under taxable goods and/or services the first two
the QRMP scheme) affected. months of
the quarter)

GSTR-3B Summary return of outward Monthly 20th of the next month.

supplies and input tax credit
claimed, along with payment of
Quarterly 22nd or 24th of the month
tax by the taxpayer.
(For succeeding the quarter***
taxpayers
under the
QRMP
scheme)

CMP-08 Statement-cum-challan to make Quarterly 18th of the month

a tax payment by a taxpayer succeeding the quarter.
registered under the
composition scheme under
Section 10 of the CGST Act.

GSTR-4 Return for a taxpayer registered Annually 30th of the month

under the composition scheme succeeding a financial year.
under Section 10 of the CGST
Act.

GSTR-5 Return to be filed by a non- Monthly 20th of the next month.

resident taxable person. (Amended to 13th by
Budget 2022; yet to be
notified by CBIC.)
Return Form Description Frequency Due Date

GSTR-5A Return to be filed by non- Monthly 20th of the next month.

resident OIDAR service
providers.

GSTR-6 Return for an input service Monthly 13th of the next month.
distributor to distribute the
eligible input tax credit to its
branches.

GSTR-7 Return to be filed by registered Monthly 10th of the next month.

persons deducting tax at source
(TDS).

GSTR-8 Return to be filed by e- Monthly 10th of the next month.

commerce operators containing
details of supplies effected and
the amount of tax collected at
source by them.

GSTR-9 Annual return by a regular Annually 31st December of the next

taxpayer. financial year.

GSTR-9C Self-certified reconciliation Annually 31st December of the next

statement. financial year.

GSTR-10 Final return to be filed by a Once, when Within three months of the
taxpayer whose GST registration the GST date of cancellation or date
is cancelled. registration of cancellation order,
is cancelled whichever is later.
or
surrendered.

GSTR-11 Details of inward supplies to be Monthly 28th of the month following

furnished by a person having the month for which
UIN and claiming a refund statement is filed.
Return Form Description Frequency Due Date

ITC-04 Statement to be filed by a Annually 25th April where AATO is up

principal/job-worker about (for AATO to Rs.5 crore.
details of goods sent up to Rs.5
to/received from a job-worker crore)
25th October and 25th April
where AATO exceeds Rs.5
Half-yearly
crore.
(for AATO >
Rs.5 crore) (AATO = Annual aggregate
turnover)

Quarterly

QUARTERLY RETURN &MONTHLY PAYMENT

SCHEME (QRMP)

• QRMP Scheme was approved by the GST Council on 5th October, 2020 and was
implemented w.e.f. 1st January, 2021.

• Taxpayers with turnover less than Rs. 5 Crore will have a choice to opt in the
scheme and thus file their GSTR-1 and GSTR-3B quarterly.

• Opting in and Opting out to be available from 1st of M2 of Q-1 to 31st of M1 of

Q-2 i.e. for 90 days.

• All eligible taxpayers were defaulted to QRMP on 1st December 2020- except <
1.5 Cr. taxpayers who chose monthly GSTR-1.

EXERCISING OPTION FOR QRMP SCHEME:

• Facility to avail the scheme on the common portal would be available throughout the
year.

• In terms of Rule 61A of the CGST Rules, a registered person can opt in for any
 quarterfrom first day of second month of preceding quarter to the last day of the
first month of the quarter. An example: A registered person intending to avail of the
scheme for the quarter ‘July to September’ can exercise his option during 1st of May to
31st of July.

• In order to exercise the option, the registered person must have furnished the return
for the preceding quarter or month, as due on the date of exercising such option. An
example: If he is exercising his option on 27th July for the quarter (July to September), in
such case, he must have furnished the return for the June which was due on 22/24th July.

Payment to be Made in M1 and M2:

Payment is required to be made in M1 and M2 through challan in FORM PMT-06 either
on self-assessment basis or a fixed amount basedon the average monthly tax liability in
the preceding quarter (35% of the net cash liability declared and paid in thepreceding
quarter).

After month M3 the return for the entire quarter shall be filed and cash liability net of
amount already paid for M1 and M2 shall be discharged. If no payment has been
made in M1 and M2, it would be presumed that sufficient balance is available in cash
ledger or in the credit ledger of the registered person.

Cash ledger refund in month M1 and M2 for any quarter shall not be allowed in
cases where taxpayers have opted in for this scheme. FORM PMT-06 to be
amended to include reason for filing of challan payment for M1 or M2 of a
quarterly return filer.

Treatment of Late Fee and interest for M1 and M2:

Interest would be payable for M1 and M2, if the liability of M1 and M2 is paid in M3 or
later. However, this interest would be self-assessed and not calculated by the system.

No interest would be payable where the taxpayer opts for discharging liability by the due
date at fixed amount (35% of their netcash liability declared and paid in the preceding
quarter as declared in GSTR-3B) as provided in the rules (say in M1) and later it is found
that in the Month M1 the liability was higher, provided they discharge their entire
liability in GSTR-3B of the quarter.

Interest would be applicable if liability (either self-assessed or fixed sum) for each month is
discharged beyond the due date; but late fees would be applicable only where the quarterly
return is furnished beyond the due date.
 INVOICE FILLING FACILITY (IFF)

• Small taxpayers under QRMP may perceive difficulty in supplying tolarge organized
taxpayers or to exporters as such recipients reportedly demand that the invoice be
reported by the supplier on monthly basis.
• To mitigate this hardship, an IFF would be provided so that these quarterly return
filers are able to upload and file those invoices in month M1 and M2 itself for those
recipients who so demand.
• Such filing facility would be available up to a cut-off date and credit would flow to
the buyer after the cut-off dateon filing of the IFF.
• Invoices reported/filed once in either M1 or M2 shall not be required to be
reported/filed when GSTR-1 for the quarter is filed.
• However, invoices which are uploaded in IFF but not filed will be purged on the
cut-off date andwould need to be reported in thequarterly GSTR-1.
• All liability from IFF of M1 and M2 and that from GSTR-1Q shall flow to one GSTR-
3B for the quarter. Till it gets developed, the filing of quarterly GSTR 3Bshall be
based on voluntary assessment of tax.

Current Scenario
Return No. of Returns
to
be filed in a
year
GSTR-1 4
GSTR-3B 12
Total 16
 QRMP Scheme
Return No. of Returns
to
be filed in a
year*
GSTR-1 4
GSTR-3B 4
Total 8

As a result of implementation of QRMP Scheme, No. of returns to be filed by a person who

has opted for quarterly scheme will be reduced from 16 to 8. (*Subject to M1, M2 and IFF
Compliances, if any.)

CONCLUSION

Implementation of GST is one of the best decision taken by the Indian government. For the
same reason, July 1 was celebrated as Financial Independence day in India when all the
Members of Parliament attended the function in Parliament House. The transition to the GST
regime which is accepted by 159 countries would not be easy. Confusions and complexities
were expected and will happen. India, at some point, had to comply with such regime.
Though the structure might not be a perfect one but once in place, such a tax structure will
make India a better economy favorable for foreign investments. Until now India was a union
of 28 small tax economies and 8 union territories with different levies unique to each state. It
is a much accepted and appreciated regime because it does away with multiple tax rates by
Centre and States. And if you are doing any kind of business then you should register for GST
as it is not only going to help Indian government but will help you also to track your business
weekly as in GST you have to make your business activity statement each week.