BBA Semester 6

GST
Unit 2

 Taxable Person under GST

A „taxable person‟ under GST, is a person who carries on any business at any place
in India and who is registered or required to be registered under the GST Act. Any
person who engages in economic activity including trade and commerce is treated
as a taxable person.
„Person‟ here includes individuals, HUF, company, firm, LLP, an AOP/ BOI, any
corporation or Government company, body corporate incorporated under laws of
foreign country, co-operative society, local authority, government, trust, artificial
juridical person.

Who is Liable to get registered under GST?

GST registration is mandatory for-
1. Any business involved in the supply of goods whose turnover in a financial
year exceeds Rs.40 lakhs for Normal Category states (Rs.20 lakhs for
Special Category states like Arunachal Pradesh, Asam, Jammu Kashmir,
Manipur, Meghalay, Mizoram, Sikkim, Tripura, Himachal Pradesh,
Uttarakhand. )
2. Any business involved in the supply of services whose turnover in a
financial year exceeds Rs.20 lakhs for Normal Category states (Rs.10 lakhs
for Special Category states)
3. Every person who is registered under an earlier law (i.e., Excise, VAT,
Service Tax etc.) needs to register under GST, too.
4. When a business which is registered has been transferred to
someone/demerged, the transferee shall take registration with effect from the
date of transfer.
5. A person making inter-state supplies

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 1

 6. Casual taxable person (see below)
7. Non-Resident taxable person (see below)
8. Agents of a supplier
9. Those paying tax under the reverse charge mechanism
10. Input service distributor (see below)
11. e-Commerce operator or aggregator*
12. Person who supplies via e-commerce aggregator
13. Person supplying online information and database access or retrieval
(OIDAR) services from a place outside India to a person in India, other than
a registered taxable person

Summary of above provision:

Turnover limit for the

Person
previous year

Person engaged exclusively in supply of goods Rs. 40 lakhs

Person engaged in supply of goods or service

Rs. 20 Lakhs
or both

Person engaged in supply of goods or service

or both in states of Manipur, Mizoram, Rs. 10 Lakhs
Nagaland and Tripura

Who is the person not liable for registration under GST?

Section 23 of the CGST act 2017 provides the detailed list of persons not liable for
GST registration. As per the said section the following are the persons not liable
for registration under GST:

1. Person engaged exclusively in supplying goods or services or both not liable

to tax.
2. Person engaged exclusively in supplying goods or services or both exempt
from tax.

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 2

 3. Agriculturist engaged in supply of produce cultivated out of land.
4. Any other person as may be notified by the government.

 Steps to Complete GST Registration Process Online

The step-by-step procedure that individuals must follow to complete GST
Registration is mentioned below:

Step 1: Visit the GST portal at https://www.gst.gov.in and Click on the 'Register
Now' link which can be found under the 'Taxpayers' tab (Below the News update
section).

Step 2: Select 'New Registration' and Fill the below-mentioned details

 Under the 'I am a' drop-down menu, select 'Taxpayer'.

 Select the respective state and district.
 Enter the name of the business.
 Enter the PAN of the business.
 Enter the email ID and mobile number in the respective boxes. The entered
email ID and mobile number must be active as OTPs will be sent to them.
 Enter the image that is shown on the screen and click on 'Proceed'.

Step 3: On the next page, enter the OTP that was sent to the email ID and mobile
number in the respective boxes and Click on 'Proceed'.

Step 4: You will be shown the Temporary Reference Number (TRN) on the
screen. Make a note of the TRN (Which helps in further Steps).

Step 5: Now, Visit the GST portal again and click on 'Register' under the
'Taxpayers' menu.

Step 6: Select 'Temporary Reference Number (TRN)'. Now, Enter TRN number
and the captcha details. Click on 'Proceed' button.

Step 7: You will receive an OTP on your email ID and registered mobile number.
Enter the OTP and click on 'Proceed'.

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 3

Step 8: The status of your application will be available on the next page. On the
right side, there will be an Edit icon, click on it.

Step 9: In the Next Step, There will be 10 sections which must be filled and has to
submit the required documents. The list of documents that must be uploaded are:

 Photographs
 Business address proof
 Bank details such as account number, bank name, bank branch, and IFSC
code.
 Authorisation form
 The constitution of the taxpayer.
 Submit the documents and move to Next Step.

Step 10: Visit the 'Verification' page and check the declaration, Then submit the
application by using one of the below mentioned methods:

 By Electronic Verification Code (EVC). The code will be sent to the

registered mobile number.
 In case companies are registering, the application must be submitted by
using the Digital Signature Certificate (DSC).
 By e-Sign method. An OTP will be sent to the mobile number linked to the
Aadhaar card.
 Once completed, a success message will be shown on the screen. The
Application Reference Number (ARN) will be sent to the registered mobile
number and email ID.

 Amendment in Registration
1. Every registered person shall inform the proper officer of any change in the
information furnished at the time of registration. The proper officer approves or
rejects the amendment in the registration. The proper officer shall not reject the
application for amendment without giving the person an opportunity of being
heard.

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 4

 2. Where a change in the constitution of any business results in change of PAN
of a registered person, the said person shall apply for fresh registration in Form
GST REG - 01.

 Cancellation of Registration
The officer either on his own motion or an application filed by the registered
person or by his legal heirs, in case of death of such person, can cancel the
registration having regards to circumstances where-
(i) The business has been discontinued, transferred fully for any reason
including death of the proprietor, amalgamated with other legal entity,
demerged or otherwise disposed of
(ii) There is any change in the constitution of the business
(iii) The taxable person is no longer liable to be registered.

 Revocation of Cancellation of Registration

Any registered person, whose registration is cancelled by the officer on his own
motion, may apply to such officer for revocation of cancellation of registration.

 GST Invoice
GST invoice is a bill or receipt of items sent or services that a seller or service
provider offers to a customer. It specifically lists out the services/products, along
with the total amount due. One can check a GST invoice to determine said product
or service prices before CGST and SGST are levied on them.

A GST invoice bill also displays the amount of taxes charged on each product or
service that an individual purchases from the seller or provider.

Contents of invoice
1. Invoice number and date
2. Customer name
3. Shipping and billing address

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 5

 4. Customer and taxpayer‟s GSTIN (if registered)**
5. Place of supply
6. HSN code/ SAC code
7. Item details i.e. description, quantity (number), unit (meter, kg etc.), total
value
8. Taxable value and discounts
9. Rate and amount of taxes i.e. CGST/ SGST/ IGST
10.Whether GST is payable on reverse charge basis
11. Signature of the supplier
If the recipient is not registered AND the value is more than Rs. 50,000 then the
invoice should carry:
 name and address of the recipient,
 address of delivery,
 state name and state code
Copies of Invoices for Goods Supply
In the event of raising a GST invoice for goods supply, the issuer would need to
arrange three copies for the following members involved in such transactions –
 The original copy is for the recipient.
 The duplicate copy is for the use of individuals responsible for transporting
said goods from supplier to recipient.
 The triplicate copy is useful to the supplier.
Copies of Invoices for Services Supply
Since there are no transporters involved in a supply of service, issuers need to only
draw two copies of the GST invoice bill.
 The original document belongs to the service recipient.
 The duplicate is kept by the supplier for internal use.

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 6

  Types of Invoices
1. Bill of Supply
A bill of supply is similar to a GST invoice except for that bill of supply does not
contain any tax amount as the seller cannot charge GST to the buyer.
A bill of supply is issued in cases where tax cannot be charged:
 Registered person is selling exempted goods/services,
 Registered person has opted for composition scheme
2. Aggregate Invoice
If the value of multiple invoices is less than Rs. 200 and the buyer are unregistered,
the seller can issue an aggregate or bulk invoice for the multiple invoices on a daily
basis.

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 7

For example, you may have issued 3 invoices in a day of Rs.80, Rs.90 and Rs. 120.
In such a case, you can issue a single invoice, totalling Rs.290, to be called an
aggregate invoice
3. Reverse Charge Invoice
A taxpayer liable to pay tax under Reverse Charge Mechanism (RCM) has to issue
an invoice for goods or services or both received by him. The receiver shall
mention the fact that the tax is paid under RCM. In addition, they have to issue a
payment voucher while making payment to the supplier.
4. Debit and credit note
A debit note is issued by the seller when the amount payable by the buyer to seller
increases:
1. Tax invoice has a lower taxable value than the amount that should have been
charged
2. Tax invoice has a lower tax value than the amount that should have been
charged
A credit note is issued by the seller when the value of invoice decreases:
1. Tax invoice has a higher taxable value than the amount that should have
been charged
2. Tax invoice has a higher tax value than the amount that should have been
charged
3. Buyer refunds the goods to the supplier
4. Services are found to be deficient

 Prohibition of unauthorized collection of tax (Sec. 32)

(1) A person who is not a registered person shall not collect in respect of any
supply of goods or services or both any amount by way of tax under this Act.
(2) No registered person shall collect tax except in accordance with the provisions
of this Act or the rules made there under.

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 8

  Amount of tax to be indicated in tax invoice and other
documents
Notwithstanding anything contained in this Act or any other law for the time being
in force, where any supply is made for a consideration, every person who is liable
to pay tax for such supply shall prominently indicate in all documents relating to
assessment, tax invoice and other like documents, the amount of tax which shall
form part of the price at which such supply is made.
With the non-obstante clause, this provision secures preference over any other
provision to the contrary whether in this Act or elsewhere. It states that in all
documents, tax amount which shall form part of the price of supply shall
prominently be indicated.
This provision therefore holds the price charged to be the „cum tax‟ price of the
supply. Tax included in the price is that actually assessed on the supply.
It means that if the supply price is Rs 1000/- which is inclusive of tax then every
document must state that “the price of Rs 1000 includes – say IGST of Rs 180/- or
alternatively say supply price is Rs 820 and IGST Rs 180 total Rs 1000.

 Credit and debit notes

What is Debit Note?
A debit note in GST is a document issued by the supplier in the following cases:
 Increase in Taxable Value -When a supplier requires to increase the
taxable value of a supply, he/she has to issue a debit note to the recipient.
 Increase in GST charged in invoice - When a supplier requires to increase
the rate or value of GST charged in an invoice, he/she has to issue a debit
note to the recipient.
What is Credit Note?
A credit note in GST is a document issued by the supplier in the following cases:
 Supplies are returned or found to be deficient by the recipient - When
goods supplied are returned by the recipient of goods/services supplied are

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 9

 found to be deficient by the recipient, the supplier should issue a Credit
Note. The credit note serves the purpose of reducing the value of the original
supply.
 Decrease in taxable value - When a supplier requires to decrease the
taxable value of a supply, he/she has to issue a credit note to the recipient.
 Decrease in GST charged in invoice - When a supplier requires to decrease
the rate or value of GST charged in an invoice, he/she has to issue a credit
note to the recipient.
Debit Note and Credit Note Details
As per the prescribed debit note format and credit note format, the following are
the details which need to be captured:
 Nature of the document must be indicated prominently, such as „revised
invoice‟ or „supplementary invoice‟
 Name, address, and GSTIN of the supplier
 A consecutive serial number containing only alphabets and/or numerals or
special characters hyphen “-“ or slash “/”, unique for a financial year
 Date of issue of the document
 If the recipient is registered- Name, address and GSTIN/Unique ID number
of the recipient
 If the recipient is unregistered- Name, address of recipient and address of
delivery, with state name and code
 Serial number and date of the original tax invoice or bill of supply
 The taxable value of the goods or services, rate of tax and the amount of tax
credited or debited to the recipient
 A signature or digital signature of the supplier or his authorized
representative

G. D. Dodiya [M.Com, UGC-NET, GSET] Page 10