Chapter 2:- GST registration and taxable event

Registration:- of a business with the tax authorities implies obtaining a unique

identification code from the concerned tax authorities so that all the operations
of and data relating to the business can be agglomerated and correlated. In any
tax system this is the most fundamental requirement for identification of the
business for tax purposes or for having any compliance verification program.

Registration under GST:- GST Model provides for registration of various persons
in different situations. In order to provide relaxation to small suppliers, it is stated
that every supplier shall be liable to be registered under this act in the State from
where it makes a taxable supply of goods or services, if its aggregate turnover in a
financial year exceeds 20 lakhs. However, this limit is ₹10 lakhs for the persons
conducting business in North Eastern states including Sikkim.

Process/Procedure of registration under GST

1. Permanent Account Number issued under the Income-tax Act, 1961 in order to
be eligible for grant of registration

2 Any specialized agency of UNO or consulate or embassy of foreign countries

shall obtain a unique identity number

3. The registration or unique identification number shall be rejected or granted

after due verification.

4. Proper officer shall not reject the application for registration or unique
identification number without giving proper notice

5. The Tax payer shall declare his: Legal name of the business, PAN, Mobile
number, E-mail address State/union territory, in Part A of Form GST REG-01 on
the GST portal, on successful verification of documents, a temporary reference
number shall be generated and communicated to the applicant on his mobile
number and e-mail address. Using this reference number, the applicant shall
electronically submit an application for registration at GST common portal. On
receipt of an application, an acknowledgement shall be
issued electronically to the applicant. If the application for the grant of
registration is approved, a certificate of registration will be issued. This
registration certificate shows the principal place of business and also additional
places of business.

6. In GST registration, the supplier will also be allotted a 15-digit GSTIN (goods and
service tax identification number.

7. The registration shall be effective from the date on which the person becomes
liable to registration, if the application for registration has been submitted within
a period of 30 days from such date.

8. If the application for registration is submitted after the expiry of 30 days, the
effective date of registration shall be the date of grant of registration.

9. Existing VAT/Central excise/service tax payers will not have to apply for fresh
registration under GST. They have to migrate to GST through online.

10. In case of new supplier of goods or service, a fresh application to be filed

online for registration under GST.

11. The registration number will be based on PAN.

Amendment of Registration:

Section 28 read with Rule 19-

a) Amendment needs when any change in particulars furnished in registration

application or as amended time to time

b) Time period to file Amendment Application is fifteen days from the date of
change.

c) Application Form is GST REG-4.

d) Approval of the Proper Officer is required where the change relates to - legal
name of business, address of the principal place of business or any additional
place(s) of business; or addition, deletion or retirement of
partners or directors, Karta, Managing Committee, Board of Trustees, Chief
Executive Officer or equivalent, responsible for the day-to-day affairs of the
business.

e) Approval Period - a period of fifteen working days from the date of the receipt
of the application in FORM GST REG-14.

f) Effected Date of Amendment - From the date of the occurrence of the event
warranting such amendment.

g) Approval Not Required of the Proper Officer - where change relates to any
particulars other than those specified in clause d) as above stated.

h) Effected Date of Amendment of particulars which do not require approval of

the Proper Officer-Shall stand amended upon submission of the application in
FORM GST REG-14 on the common portal.

i) Change in Constitution - where a change in the constitution of any business

results in the change of the Permanent Account Number of a registered person,
the said person shall apply for fresh registration in FORM GST REG- 01.

j) The Proper Officer fails to take action within stipulated period - If the proper
officer fails to take any action,

(a) within a period of fifteen working days from the date of submission of the
application, or

(b) within a period of seven working days from the date of the receipt of the reply
to the notice to show cause under sub-rule (3) for rule 19, the certificate of
registration shall stand amended to the extent applied for and the amended
certificate shall be made available to the registered person on the common
portal.

Cancellation of Registration

1. Business has been discontinued.

2. The registered taxable person has contravened provisions of GST.

3. Any registration has been obtained by fraud, wilful misstatement or
suppression of facts.

4. Any taxable person who has not furnished returns for a continuous period of six
months.

5.Person paying tax under composition levy has not furnished returns for three
consecutive quarters.

Taxable Event

A taxable event refers to the occurrence that triggers the levy of GST on the
supply of goods or services. The taxable event in GST is the supply of goods or
services or both, and it is crucial for determining when the liability to pay GST
arises.

1. Supply of Goods or Services: The primary taxable event in GST is the "supply"
of goods or services or both. Supply includes all forms of supply such as sale,
transfer, barter, exchange, license, rental, lease, or disposal made or agreed to be
made for a consideration by a person in the course or furtherance of business.

2. Time of Supply: The time of supply is when the GST becomes payable. It can be
the date of issue of an invoice, the date of receipt of payment, or the date of
completion of the supply, whichever is earlier.

3. Continuous Supply of Goods or Services: In the case of continuous or recurring

supplies where the due date of payment can't be determined, the time of supply
is determined periodically or at the time of the event triggering the payment.

4. Reverse Charge Mechanism: In certain cases, the liability to pay tax is shifted
from the supplier to the recipient. This is known as the reverse charge
mechanism. It is applicable for specific goods or services and in specific situations
as defined by the GST law.

Supply of goods:- Sale means a sale of goods made within the State for cash or
deferred payment or other valuable consideration but does not include a
 mortgage, hypothecation, charge or pledge. (Example: mortgage, hypothecation,
charge or pledge is not supply and hence GST will not be levied).

Transfer means, where the ownership may not be transferred but the right in the
goods is transferred. (Example: Mr. A is the owner of Xerox machine. He
transferred the right to operate the Xerox machine to Mr. B for a consideration of
Rs. 10,000 per month for four months. Hence, ownership of the machine is not
transferred but the right in the machine is transferred. It is supply of service.
Hence, GST can be levied.

Supply of goods and services types:- Under the GST, supply of goods and/or
services can be classified into two major categories - Taxable supplies and Non-
taxable supplies. These are further classified into different types based on the
nature of supply made.

 Taxable Supplies - These refer to supply of goods and/or services that are taxable
under GST. Registered taxpayers can claim refunds on tax paid during purchases
(in other words, they are eligible for ITC).
o Regular taxable supplies - Whenever you supply an item or service which
attract a GST rate greater than 0% within India, it becomes a regular taxable
supply.
o Nil-rated supplies - Whenever you supply goods which attract 0% GST by
default, such supplies are known as nil rated supplies.
o Zero-rated supplies - Whenever you make exports, supplies to a SEZ unit or
deemed exports, the GST associated with the items or services involved
becomes 0 even though the same would attract a GST rate greater than 0%
when sold within India. Such supplies are deemed as zero rated supplies
 Non Taxable Supplies
o Exempt Supplies - The supply of exempt goods or services do not attract GST
even though they are within the purview of GST. That said, the registered
taxpayer cannot claim ITC on inputs used for making such supplies.
o Non-GST supplies - This refers to supply of items which are outside the purview
of the GST law.
GOODS:

1. Agriculture implements.

2. Bangles (except those made from precious metals).

3. Indian national flag.

4. Gandhi Topi.

5. Raw silk, silk waste.

6. Court fee stamps sold by authorised vendors.

7. Jaggery.

8.Coffee beans(not roasted)

9. Vegetables (other than those put up in a container, which has registered brand
name).

10. Trees and plants.

11. Milk (other than those put up in a container, which has registered brand
name).

12. Meat (other than those put up in a container, which has registered brand
name).

13. Fire wood.

14. Kajal (kajal pencil sticks), Bindi, Kumkum.

15. Salt.

EXCEMPTED SERVICES:

1. Import of services by UNO.

2. Import of services by foreign diplomatic mission.

3. Services provided by intermediary when supplier and recipient of goods are
located outside India.

4. Health care services.

5. Disposal of bio-medical waste.

6. Training program financed by the government.

7. Services by RBI.

8. Toll charges.

9. Transportation of goods by GTA(goods transport agency)Services.

10. Services provided by the Indian Institutes of management.

11. Services provided to recognized sports body.

12. Services relating to agricultural activities.

13. GST exemption is applicable for the service provided by the govt., if
consideration paid does not exceed 5000.

14. Services provided by old age home run by registered body to its residents,
whose age is 60 years or more against consideration upto 25,000 PM per
member, GST exemption is available.

15. GST exemption is applicable for hotel room upto ₹1000 per day.

16. Transportation of goods by GTA, wherein consideration charged does not

exceed 7500. (Transportation of goods and agriculture produces for the
consideration not exceeding ₹750, GST exemption is applicable.).

17. Services by an acquiring bank, to any person in relation to settlement of

amount upto 2000 in a single transaction is exempt from GST.

18. No GST in case of life micro-insurance product, having maximum amount of

cover of ₹ 50,000.
19. Services provided by incubate up to a total turnover of ₹50 lakhs, GST is not
charged.

COMPOSITE SUPPLY- Composite supply comprises 2 or more supplies naturally

bundled and supplied in conjunction with each other in the ordinary course of
business, one of which is principal supply. GST rate applicable on the principal
supply shall be applied on the entire consideration.

E.g.: buying a dry fruit gift box for Diwali. It includes dry fruits, a box and a
wrapper. Box and wrapper cannot be sold individually without the main content
which is dry fruit. This is Composite supply.

MIXED SUPPLY:- Mixed supply under GST means a combination of 2 or more

goods/services made together for a single price. Each of these items can be
supplied separately and is not independent on any other. In this case, highest GST
rate will be applicable on the entire consideration.

E.g.: A Diwali gift box consisting of sweets, dry fruits and juices supplied for a
single price is a mixed supply.these goods can also separately. Since fruit juices
have the highest GST rate of 18%, fruit juices will be treated as principal supply
and 18 % will apply on the entire gift box.

LEAVY OF TAX – Levy of tax means the imposition of taxes as well as assessment
of tax but does not include collection of tax. The term levy appears to be wider
than the term of assessment. When the payment of tax is enforced, there is a
levy. Therefore, the provision related with levy can be divided into two parts I.e.
Imposition of tax and assessment of tax.

1.Imposition of Tax

2. Assessment of Tax

1. Imposition of Tax –type of tax is done by government and tax is imposed as

soon as take place.

2. Assessment of Tax-This type of tax is done by the Executive government &

assessment means calculation of tax.
COLLECTION OF TAX –Collection of tax means the point of time for payment of
tax. Hence, as soon as tax is levied right to collect tax arises in the department.
Sometimes administrative convenience it may be delayed such as for a month or
a quarter. So that assesses need not to file return and pay tax every time as and
when taxable event takes place.