LLB -Taxation Laws -GST Notes -Unit -4

REGISTRATION PROCEDURE UNDER GST:

Registration under GST is granted based Permanent Account
Number (PAN) allotted under Income Tax Act. Supplier is
required to obtain registration in each of such State or Union
territory from where he makes Taxable supply.
GST registration number is 15 digit it is called as GSTIN (GST
Identification Number). It is allotted to every person who
obtains the registration under GST along with Certification of
Registration.
The first two digits of the GSTIN are state code, next 10 digits
are the PAN of the legal entity, the next two digits are for entity
code, and the last digit is check sum number.
The business entity having its branches in multiple States is
required to take separate State wise registration for branches in
different States. In case of entities having different branches can
have single registration. In such cases it has to declare one
place as principal place of business and other who branches as
additional place of business.
Every supplier needs to get registration. No registration is
required for small business having all India aggregate turnover
below Rs 20 lakh in a financial year. In case of special category
states (i.e. Assam, Arunachal Pradesh, Himachal Pradesh,
Uttarkhand, Manipur, Mozoram, Sikkim, Meghalaya,
Nagaland or Tripura) if the turnover is less than 10 lakh no
registration required.

PERSONS LIABLE TO OBTAIN REGISTRATION (Section 22 of

CGST Act)
 1. Those who exceed the threshold limit
2. Who are registered under the earlier law
3. In case of transfer of business on account of succession
etc.,
4. In the case of amalgamation/demerger by an order of
High Court etc.,
As per Section 24 of the CGST Act in the following cases
registration under GST is compulsory irrespective of their
aggregate turnover.
1. Casual taxable persons making taxable supply;
2. Persons who are required to pay tax under reverse charge;
3. Persons who are required to pay tax under sub-section 5
of Section 9;
4. Non-resident taxable persons making taxable supply;
5. Persons who are required to deduct tax under section 51,
whether or not separately registered under this Act;
6. Persons who make taxable supply of goods or services or
both on behalf of other taxable persons whether as an
agent or otherwise;
7. Input Service Distributor, whether or not separately
registered under GST
8. Every electronic commerce operator;
9. Every person supplying online information and data base
access or retrieval services from a place outside India to a
person in India, other than a registered person; and
10. Such other person or class of persons as may be
notified by the Government on the recommendations of
the Council.
11. Persons who supply goods or services or both, other
than supplies specified under sub-section (5) of Section 9,
through such electronic commerce operator who is
required to collect tax at source under section 52.
As per section 23 of the CGST Act the following persons shall
not be liable to registration
1. Any person engaged exclusively in the business of
supplying goods and /or services that are not liable to tax
or wholly exempt from tax under CGST/IGST Act.
2. An agriculturist, to the extent of supply of produce out of
cultivation of land
3. Specified category of persons notified by the Government.
For instance, persons making only reverse charge supplies
have been notified as being exempted from obtaining
registration under GST law
REGISTRATION PROCEDURE UNDER GST
The person who intends/required to obtain the registration for
submitting the application for registration is required to should
have the following information.
1. Permanent Account Number-PAN
2. Mobile Number
3. E-mail ID
4. Pass port size photo of the proprietor, in case of
partnership- all partners, in case of companies all the
directors.
5. Aadhar Number.
6. Address of the place of business with supporting
documents such as rent agreement, latest tax paid
receipt/latest electricity paid receipt.
7. Bank Account number with IFSC code.
8. Copy of the Partnership Deed/Registration Certificate in
case of companies.
The applicant has to submit the Form GST REG-01 in the
common portal of GST.
Then PAN, Mobile Number, and email address are validated.
After validating the above Temporary Reference Number
(TRN) is generated and communicated to the applicant on the
validated mobile number and e-mail id.
With the help of TRN the applicant is required to submit
electronically Part -B of the application form along with
scanned copies of the specified documents at the common
portal.
An acknowledgement will be issued to the applicant
electronically. Then the application for registration shall be
forwarded to the Proper Officer( i.e. Jurisdictional Officer).
On receipt of the application the Proper Officer will examine
the application along with the attached documents submitted
by the applicant. If the application is found order the Proper
Officer will grant the Certificate of Registration under GST in
Form GST-REG-06.
In case the Proper Officer finds application is not in order, then
he has to issue notice in Form REG-03 within 3 working days
from the date of application seeking
clarification/information/documents from the applicant. This
notice is issued electronically. After receipt of the notice the
applicant is required to submit the reply along with necessary
information/documents in Form REG-04. Applicant is required
to submit the reply within 7 working days from the date of
receipt of the notice. If reply is accepted by the Proper Officer,
is required to issue Certification of Registration in Form GST
REG-06.
In case the Proper Officer fails to take any action within 3
working days from the date of submission of application, or
within 7 working days from the date of receipt of clarification,
information or documents furnished by the applicant, the
application for grant of registration shall be deemed to have
been approved.
Effective Date of Registration:
Within 30 days from the date he becomes liable to registration -
Effective date of registration is the date on which he becomes
liable to registration.
After 30 days from the date he becomes liable to registration-
Effective date of registration is date of grant of registration.
In case of voluntary registration-Date of grant of registration.

Generally supplier of good and services is liable to pay tax.

Recipient of supply of goods or services is also required to pay
taxes only in cases where such transactions are covered under
reverse charge.
Taxable event under GST is Supply of Goods or Services.
Taxable supply means a supply of goods or services or both
which is leviable to tax under GST.
Exempt supply means supply of any goods or services or both
which attracts nil rate of tax or which may be wholly exempt
from tax under section 11, or under section 6 of the IGST Act,
and includes non-taxable supply.
Non -taxable supply means a supply of goods or services or
both which is not leviable to tax under CGST Act or IGST Act

Levy of Tax In Respect of Intra State Supply of Goods and

Services:
In case of supply of goods or services or both within the State,
then both Central Government and State Government levy tax.
Central Government will levy CGST and Stat Government will
levy SGST.
In case of Inter State supply of Goods and Services IGST will be
applicable which will be equivalent to aggregate of CGST and
SGST rate of tax.
Inter-State Supply:
As per the provisions of section 7 of the IGST Act subjectto the
place of supply provisions, where the location of the supplier
and the place of supply are in:
a. Two different States.
b. Two different Union Territories; or
c. A State and Union Territory,
Such supplies are treated as the supply of goods or services in
the course of inter-State trade or Commerce. Supplies to or by
SEZ development/ units are defined as inter-State supply.
Goods imported in to the territory of India till they cross the
customs frontiers of India or the supply of services imported
into the territory of India shall be treated as supplies in the
course of Inter-State trade or commerce. Further, when the
supplier is located in India and the place of supply is outside
India shall be treated as supplies in the course of inter-State
trade or commerce. In addition to this, if the supplies are made
to an international tourists are also treated as inter-State
supplies.

Levy of IGST on Imported Goods:

In respect of imported goods IGST is levied on the goods
imported in to India and collected as per the provisions of
section 3 of the Customs Tariff Act 1975 on the value
determined under the said Act. In such cases tax is levied at the
point when duties of customs are levied on the said goods
under section 12 of the Customs Act, 1962.
Levy of Tax on Import of Services:
As per section 2(11) of the IGST Act import of services means
supply of any service where the supplier is located outside
India, and the receipt is located in India, and the place of
supply of service is in India. Import of services can be
considered as supply based on whether there is consideration
or not and whether the service is supplied in the course or
furtherance of business.
COMPOSITION UNDER GST:
A registered person whose aggregate turnover in the preceding
financial year did not exceed specified amount, may opt to pay
tax under Composition Scheme in lieu of the tax payable under
normal taxation [Section 10(1)].
A registered person who opts for composition
1. Can pay tax at one percent of the turnover in State or
turnover in Union territory in case of manufacturer,
2. Two and half percent of the turnover in State turnover or
Union territory in case of persons engaged in making
supplies referred to in clause (b) of the paragraph 6 of the
Schedule II, and
3. Half percent pf the turnover in State or turnover in Union
Territory in case of other supplies,
Subject to such conditions and restrictions as may be
prescribed:
The registered person shall be eligible to opt
 He is not engaged in the supply of services as provide in
sub-section (1);
  He is not engaged in making any supply of goods which
are not leviable to tax under CGST Act;
 He is not engaged in making any inter-State outward
supplies of goods;
 He is not engaged in making any supply of goods through
an electronic commerce operator who is required to collect
tax at source under section 52 and
 He is not a manufacturer of such goods as may be notified
by the Government on the recommendation of the
Council;
Composition scheme shall lapse with effect from the day on
which his aggregate turnover during a financial year exceeds
the limit specified under sub-section (1) section 10.
The person who opts for composition scheme shall not collect
any tax from the recipient on supplies made by him. Further he
not entitled to take input credit. The composition taxable
person is required to mention “composition taxable person” on
every notice or signboard at the principal place of business and
at every additional place or places of business.

TAX INVOICE (SECTION 31):

Every registered person under GST supplying Goods or
Services is required to issue a tax invoice for all supplies.
Tax invoice issued by the registered person contain the
following particulars:

1. Name, address and GSTIN of the supplier;

 2. A consecutive serial number, not exceeding sixteen
characters;
3. Date of issue;
4. Nam, address and GSTIN or UIN, if registered, of the
recipient;
5. Name and address of the recipient and the address of
delivery, along with the name of State and its code, if such
recipient is un-registered and where the value of taxable
supply is fifty thousand rupees or more;
6. HSN code for goods or services;
7. Description of goods or services;
8. Quantity in case of goods and unit or Unique Quantity
Code thereof;
9. Total value of supply of goods or services or both;
Taxable value of supply of goods or services or both
considering discount or abatement, if any;
10. Rate of tax;
11. Amount of tax charged in respect of taxable goods or
services;
12. Place of supply along with the name of State, in case
of a supply in the course of inter-State trade or
commerce;
13. Address of delivery where the same is different from
the place of supply;
14. Whether the tax is payable on reverse charge basis;
and
15. Signature or digital signature of the supplier or his
authorized representative;

Supplier of taxable goods is required to issue invoice

-Before or at the time of removal of the goods where the supply
of involves movement of goods; or
-Before or at the time of delivery of the goods to the recipient
where the supply does not involve movement of goods.
Supplier of services is required to issue a tax invoice:
-Before the provision of the services or
-After provision of the services but within a specified time.
The invoice is to be prepared in triplicate in case of supply of
goods. Original for Recipient, Duplicate for Supplier and
Triplicate for Supplier.
In case of supply of services invoice is to be prepared in
duplicate.
Original for Recipient and Duplicate for Supplier.

CREDIT AND DEBIT NOTES:

In case where tax invoice has been issued for the supply and
the taxable value or tax charged in that tax invoice is found to
exceed the taxable value or tax payable in respect of such
supply, or where the goods supplied are returned by the
recipient, or where goods or services or both supplied are
found to be deficient, the registered person who has supplied
may issue to the recipient containing such particulars as may
be prescribed. The registered person who issues the credit note
has to declare details of such credit note in the return for the
month during which such credit note has been issued but not
later than September following the end of the financial year in
which such supply was made or date of furnishing the annual
return whichever is earlier.
Where invoice has been issued for supplies and taxable value
or tax is charged in that tax invoice is found to be less than the
taxable value or tax payable in respect of such supply the
registered person who has supplied shall issue to the recipient
a debit note containing such particulars as prescribed. Any
registered person who issued a debit note in relation to a
supply has to declare the details of such debit note in the return
for month during which such debit note has been issued and
the tax liability has to be adjusted in the prescribed manner.
INPUT TAX CREDIT:
Any registered person can avail credit of input tax charged on
the inward supply of goods or services or both which are used
or intended to be used in the course or furtherance of his
business.
Conditions for availing in put tax credit by the registered
person are as under:
1. Possession of tax invoice or debit note or any other
specified tax paying document issued by the supplier.
2. Has received the goods or services
3. Tax is actually paid by the supplier.
4. Has furnished the valid return prescribed under the Act.
5. If the inputs are received in lots or instalments, input
credit can be availed only when the last lot or instalment
of the input is received.
6. Payment to the supplier towards value of the supplies
with tax to be made within 180 days from the date of issue
of invoice, failing which the amount of credit availed by
him would be added to his output tax liability and he
shall also liable to pay interest at 18% from the date of
availing credit till the date when the payment is made to
the supplier.
Based on the following documents input tax credit can be
availed.
a. Invoice issued by a supplier of goods or services or both;
 b. Self-Invoice issued by recipient under reverse charge in
case of receipt of goods or services or both from
unregistered supplier along with proof of payment of tax;
c. A debit note issued by supplier;
d. Bill of entry or similar document prescribed under
Customs Act;
e. Revised invoice;
f. Document issued by Input Service Distributor.
Time limit for claiming Input Tax Credit (ITC)
ITC on invoices pertaining to a financial year cannot be availed
beyond the due date of filing or return for the month/quarter
ended September of the following financial year or the date of
filing of annual return, whichever is earlier.
In respect of cases mentioned in section 17(5) of the CGST Act
2017 ITC is not available.
PAYMENT OF TAX:
Provisions relating to payment of tax, interest, penalty and
other amounts are covered under section 49 of CGST Act,
2017. Electronic Ledgers are statements of cash and input tax
credit in respect of each registered taxpayer. Along with the
electronic cash ledger each taxpayer shall also have an
electronic liability register. Amount credited to the electronic
cash ledger can be used for making payment of tax, interest,
penalty, fees or any other amount payable under the provisions
of CGST Act or CGST Rules subject to conditions and such time
as may be prescribed.
The person has to generate a challan in Form GST PMT-06 on
the common portal and enter the details of the amount to be
deposited by him towards tax, interest, penalty, fees or any
other amount.
For making payment challan is to be generated in the GST
portal then payment is to be made through electronic gateway.
Electronic Credit Ledger shall be maintained in Form GST
PMT-02 for each registered person eligible for input tax credit
under the CGST Act on the common portal and every claim of
input tax credit under this Act shall be credited to said ledger.
When liability under GST is discharged electronic cash ledger
is debited to extent of discharge of liability.
The amount of input tax available in the electronic credit ledger
of the registered person on account of –
Integrated tax shall first be utilized towards payment of
integrated tax and the amount remaining, if any may be
utilized towards the payment of CGST and SGST, or as the case
may be, Union territory tax, in that order;
The Central tax shall first be utilized towards payment of
central Tax and the amount remaining, if any, may be utilized
towards payment of integrated tax;
The State tax shall be first utilized towards payment of State
Tax and the amount remaining, if any, may be utilized towards
payment of integrated tax.
The Union territory tax shall be first be utilized towards
payment of Union territory tax and the amount remaining, may
be utilized towards payment of integrated tax;
The Central tax shall not be utilized towards payment of State
tax or Union territory tax; and
The State tax or Union territory tax shall not be utilized
towards payment of Central tax.
Taxable person has to discharge his tax and other dues under
this Act or the rules made thereunder in the following order,
namely:-
Self-assessed tax, and other dues related to returns of previous
tax periods;
Self-assessed tax, and other dues related to the return of the
current tax period;
Any other amount payable under this Act or the rules made
thereunder including the demand determined under section 73
and 74;
Payment of Interest towards delay in payment of tax:
Delay in payment of tax interest charged at 18% per annum.
Interest towards undue or excess claim of input tax credit or
undue or excess reduction in output tax liability interest
charged at 24%.
Claim of Refund:
The available in the electronic cash ledger or electronic credit
ledger after payment of tax, interest, penalty, fee or any other
amount payable under the CGST Act or the CGST Act Rules
made thereunder may be refunded in accordance with the
provisions of section 54.
When refund claim has been made, such amount shall be
debited to the electronic cash or credit ledger, In cases where
refund claim is rejected, electronic cash ledger or credit ledger
shall be credited by the proper officer by passing an order in
From GST PMT-03.

RETURNS UNDER GST:

The registered person under GST is required to submit various
returns at periodical intervals. All returns are to be filed
electronically.
GSTR-1 to be filed Monthly/Quarterly furnishing details of
outward supplies of goods and /or services effected during a
tax period. GSTR- is to be filed on or before 10th day of the
succeeding the said tax period in cases where turnover exceeds
Rs 1.50 crores. Quarterly GST-1 are to furnished within
prescribed due date after the end of the quarter.
GSTR-3B to be filed monthly furnishing details of inward and
outward supplies of goods and/or services, input tax credit
availed, tax payable, tax paid and other prescribed particulars.
GSTR-9 to be filed annually.

GST PRACTITIONERS [Section 2(55)]: means any person who

has been approved under section 48 to act such practitioners.
A registered person under GST may authorize GST
Practitioners to furnish details of outward supplies and inward
supplies through GST returns. GST Practitioners are required
to perform such other prescribed functions. The responsibility
for correctness of any particulars furnished in the return or
other details filed by the GST Practitioners rests with the
registered person, as the GST Practitioner furnishes the return
on behalf of the registered person.