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GST law: Who are the persons eligible to opt for composition scheme?

GST law: Who are the persons eligible to opt for composition scheme?

GST Law model

There’s an event management company that organises events in different states. Does it need to register in all states?

The Government through its ‘FAQ tweets’ has clarified that in case of event-related services, a supplier shall be required to obtain the GST registration in the state where the event is held only if such person supplies services from such state. Where the services are provided from a different state, the supplier can charge IGST, treating the location of the event as the ‘Place of Supply’.

Therefore, the need for the event management company to obtain the GST registration in the state where the event is held would need to be determined based on whether they supply any services from such state or not under GST law.

A company has a registered office in Delhi. It needs to purchase goods from one registered manufacturer located in West Bengal and supply them on IGST to their customer in Haryana. To save time and freight charges from West Bengal to Delhi, the company wants to dispatch the goods directly to the location of his customer in Haryana. Please advise on how to issue the invoice keeping in mind that the supplier located in West Bengal will be directly sending the goods to Haryana. Can the company issue the IGST invoice from Delhi to Haryana and send the same to the transporter?

Under the GST law, if a supplier of goods instructs its vendor to supply products directly to a third person, it shall be deemed that the supplier of goods had received them from its vendor at its principal place of business and the tax is to be determined accordingly.

Based on the facts, the principal place of business of the company is Delhi, for which they have obtained the GST registration. Though the vendor would ship the goods directly from its location in West Bengal to the customer’s location in Haryana, it would be deemed that the company has first received the goods in Delhi. Subsequently, the supply of goods by the company shall be treated as supply from Delhi to Haryana, which shall attract integrated tax.

Also read: What is an e-way bill and why is it important?

Who are the persons eligible to opt for composition scheme under the GST law? Also, I want to know if the liability to pay taxes under Reverse Charge Mechanism is covered under the Composition scheme?

The GST law provides an option to a supplier of goods having an annual aggregate turnover not exceeding Rs10 million to opt for payment of GST under composition scheme.

Similar, option has also been provided to a person engaged in the supply of food/beverages (other than alcohol). However, this option is not available for other service providers. This option is also not available if the supplier is engaged in undertaking inter-State supplies.

The GST payable under reverse charge mechanism is not covered under composition scheme. If a person registered under composition scheme procures any goods/services in respect of which the GST is payable under reverse charge mechanism, the person shall be required to pay the GST at applicable rate and not based on rates prescribed under composition scheme.

What would be the GST liability in case of auction of goods? If the bidder is located outside the state of the auction, will IGST be charged or CGST+SGST?

The ‘Place of Supply’ of goods would be the location of goods at the time at which the delivery of goods terminates for supply to the recipient. If the intention of the parties is to transfer the property in goods during the auction or the goods would be sent to the premises of the recipient with the supplier bearing the risk while the goods are in transit. In the former case, CGST and SGST would be levied while in the latter case, IGST would be levied in case inter-state movement is involved.

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(The author of this article is Amit Bhagat, Tax partner, PwC India. Aditya Khanna, associate director, PwC )
Do you know why a service provider needs to register for GST across several states?

Do you know why a service provider needs to register for GST across several states?

Do you know why a service provider needs to register for GST across several states?

This is one of the tricky questions that often arises when businessmen tend to do business across multiple states or simply offer services across multiple states, apart from the state where they have been registered. There is lot of confusion on this (GST ) and this blog tries to address this ambiguity, using few practical scenarios.

Let’s take the first scenario. Assume that you are a service provider, who has operations in only one state. In such a scenario, GST is going to be quite easy for you, as you need to have a single registration from where you are operating. This way, you can ensure minimal compliance, apart from getting more input tax credit.

Now, let’s take another scenario, where you are offering services in other states, apart from the state, where you have been registered. Even in such a scenario, you are required to have only one GST registration pertaining to the state, where you have the registered office. Simply stated, you can operate with one GST registration, though you may be offering services in multiple states.

Also read: All about Goods & Services Tax

Now, let’s understand a typical scenario, where you would be operating across multiple states, apart from your home state. Or you may be on the verge of establishing an office in other states to expand your business. In such a scenario, you would be required to register in that particular state(s) as well, where you intend to open your office or expand your operations. This is quite cumbersome and complex, considering that you need to have an individual GST registration across each state, where you intend to operate.

In the pre-GST era, though your business might be operating in multiple states, you may still require a single registration, where you have established the office. However, in this post GST era, this single tax has been split that need to paid state wise. This becomes a headache for companies operating across multiple states; a typical example being the banking sector, which operates across Pan India. Though there have been requests to minimize this impact, till date, nothing much has materialized. Let’s hope for the best in the coming days that can ease the burden of multiple GST registrations.

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GST registrations up, but fewer tax returns in August

GST registrations up, but fewer tax returns in August

GST Registration

The tax base or those registered for GST has gone up in August but the number of filings so far is lower than the previous month as businesses grapple with technology issues and take advantage of the government’s decision to waive penalty for late filing.

So far in August, the second month of Goods & Service Tax, around 35 lakh taxpayers of the 67.73 lakh required to file returns have managed to pay tax and file returns, which is a little over half the population. Data available with Goods and Service Tax  Network, the agency managing the IT platform, showed that over 87 lakh businesses have registered so far, which includes nearly 25 lakh new players apart from the 63 lakh or so who migrated from service tax, central excise and state VAT.

Also read: GST interim returns: Over 30 lakh paid tax in August, matching July trend

In contrast, in July, 36 lakh out of 45.58 lakh eligible entities paid GST, and the Centre collected over Rs 92,000 crore, which translates into nearly 79% compliance. September 20 was the last date for paying GST and filing returns for August, and a majority of the registered dealers could not comply due to various reasons, including technical glitches with the GSTN portal.

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Consultants and chartered accountants blamed the IT platform and complained of lack of capacity, a charge that has stoutly been denied by GSTN, with interim chairman A B Pandey telling TOI that the system has sufficient capacity to handle a large volume of filings But traders are not satisfied.

“We expected some improvement in the second month, with the government talking about rectifying the technical glitches. But it has gone from bad to worse,” said Praveen Khandelwar, national secretary-general, Confederation of All-India Traders (CAIT).

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TDS, TCS deductors can apply for GST registration from September 18

TDS, TCS deductors can apply for GST registration from September 18

TDS, TCS deductors can apply for GST registration from September 18

GST registrations for entities mandated to collect and deduct tax at source will start from September 18. However, the date from which tax deducted at source (TDS) or tax collected at source (TCS) will be done will be notified later. The Goods and Services Tax (GST) Council, at its 21st meeting in Hyderabad, decided to open registration of persons liable to deduct TDS and TCS from September 18. As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1 per cent on payments to suppliers of goods or services in excess of Rs 2.5 lakh.

Also, e-commerce companies are required to collect 1 per cent TCS while making payment to suppliers under GST, which kicked in from July 1. Following industry demands, the government in June had decided to defer the TDS and TCS provision for smooth rollout of GST. GST subsumed a host of levies including excise and service tax and transformed India into a single market for seamless movement of goods and services. Also, accommodating industry demands, the GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, on Saturday decided to extend the deadline for filing TRAN-1 form by a month to October 31. TRAN-1 is to be filed by those businesses that want to claim credit for taxes paid before the launch of GST. This form can now be revised once by businesses in the case of any discrepancy.

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According to states, the transitional credit claimed by businesses is huge running up to Rs 60,000 crore. In the maiden returns for July, as much as Rs 95,000 crore taxes have been earned from about 45 lakh assessees. With regard to people opting for the composition scheme, the GST Council has decided to give businesses time till September 30 to avail of it. “Such registered person shall be permitted to avail of the benefit of the composition scheme with effect from October 1,” an official statement said.

Besides, the over 10 lakh registered businesses who have already opted for the composition scheme will be required to file their returns for the July-September quarter by October 18 and pay their taxes. Under GST, as many as 72 lakh businesses have migrated from excise, service tax and VAT registration. The composition scheme is an alternative to the levy of tax designed for small taxpayers whose turnover is up to Rs 75 lakh — Rs 50 lakh in the case of eight north-eastern states and the hilly state of Himachal Pradesh. The objective is to bring simplicity and reduce the compliance cost for small taxpayers. The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 2 per cent tax on their annual turnover. The tax rate is 5 per cent for the rest.

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Source :  MillenniumPost
GST Registration: Who is Liable to get Registered under GST?

GST Registration: Who is Liable to get Registered under GST?

A taxable person under GST is anyone who is registered under GST or required GST Registration. Various criteria’s like turnover, business activity or transaction have been specified in GST Act, which details persons liable to be registered under GST. Further, any person having the registration under Service Tax, VAT or Central Excise on the date of GST coming into force will automatically be considered a taxable person under GST.

GST registration is compulsory for:-

  • Any business whose turnover in a money related year exceeds Rs 20 lakhs (Rs 10 lakhs for North East and slope states). [Note: If your turnover is supply of just exempted goods/administrations which are excluded under the GST, this condition does not apply.]
  • Every individual who is enlisted under a before law (i.e., Excise, VAT, Service Tax and so on.) needs to register under the GST, as well.
  • When a business which is enlisted has been exchanged to somebody/demerged, the transfer might produce an enrollment with results from the date of exchange.
  • Anyone who drives between the state supply of merchandise.
  • Casual assessable individual.
  • Non-Resident assessable individual.
  • Agents of a provider.
  • Those paying duty under the turn around charge component.
  • Input benefit merchant.
  • E-business operator or aggregator.
  • A person who supplies by means of internet business aggregator.
  • The person supplying on the web data and database get to or recovery administrations from a place outside India to a man in India, other than an enrolled assessable individual.

Who is a Casual Taxable Person under GST?

A man who sporadically supplies stock or possibly services in an area where GST is germane anyway he doesn’t have a settled place of business. Such a man will be managed as an agreeable assessable individual as indicated by GST.

Case: A man who has a place of business in Bangalore supplies assessable guiding organizations in Pune where he has no place of business would be managed as a nice assessable individual in Pune.

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Who is a Non-Resident Taxable person under GST?

Right when a non-occupant every so often supplies items/benefits in an area where GST applies, yet he doesn’t have a settled place of business in India. As indicated by GST, he will be managed as a non-occupant assessable person. It resembles above beside the non-resident has no place of business in India.

Who is an Input Service Distributor?

‘Data Service Distributor’ infers an office of the supplier of items/organizations which gets evaluated requesting on receipt of data organizations and issues accuse sales of the true objective of scattering the credit of CGST/SGST/IGST paid on the said organizations to your branch with same PAN. (It must be a supplier of assessable items/organizations having an undefined PAN from that of the working environment implied previously).

In this manner, simply credit on ‘input organizations’ can be passed on and not on input stock or capital items. This will be another thought for assessors who are starting at now not enrolled as a data advantage trader. In any case, this office is optional in nature.

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GST base looks set to be at least 25% wider than earlier tax regime

GST base looks set to be at least 25% wider than earlier tax regime

finance ministry : GST

Sticking to the 1 July deadline for rolling out the GST (goods and service tax) seems to have paid off as far as the number of registered indirect tax assessees, referred to as the tax base, and the potential for a revenue boost to the exchequer are concerned.

The number of indirect tax assessees who have applied for registration or registered to pay GST is set to cross the 10 million mark soon, a 25% expansion from the 8 million assessees registered under the earlier tax system for paying excise duty, service tax and state-level value-added tax (VAT), said a senior finance ministry official who asked not to be named.

A wider tax base may lead to increased tax buoyancy, the official said. Tax collection is said to be buoyant when growth in tax receipts surpasses the economic growth rate.

A wider tax base is of immense significance to the government as it will help it stick to the fiscal deficit target of 3.2% for 2017-18 even if some of the non-tax revenue receipts such as disinvestment proceeds, payments from the telecom industry for spectrum and other levies fall below the levels estimated at the time of making the budget.

“The registration process under the GST Network (the company that processes tax returns) is going on very well. It may cross the 10 million mark soon,” said the official. On 4 August, finance minister Arun Jaitley said 7.2 million dealers of the 8 million under the old regime have registered under GSTN, while an additional 1.3 million new dealers have also registered under GSTN.

On Wednesday, the cabinet committee on economic affairs chaired by Prime Minister Narendra Modi cleared a Rs27,413 crore budgetary support to make the transition to GST easier for factories set up in hill states of Jammu & Kashmir, Uttarakhand and Himachal Pradesh, and in northeastern states. Despite the overhaul of the indirect tax regime on 1 July, more than 4,200 industrial units located in these remote areas will continue to receive the tax benefits promised to them when the authorities wooed them to invest there.

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The budgetary support will let the central government refund part of the GST these units pay. It will ensure that the excise duty exemption available to them in the earlier regime continues in a modified form. An official statement issued after the cabinet meeting said that the refund scheme is applicable from 1 July 2017 till 31 March 2027.

The excise duty exemption available in these states comes to an end in different years but all those who have set up units before that terminal date will get the benefit of exemption for the subsequent 10 years. The benefit will be in the form of refund in GST regime.

The official statement said the share of GST which goes to the Union government—central GST and the central government’s share of integrated GST (IGST) levied on inter-state commerce—will be refunded under the scheme. Operational guidelines of the scheme will be notified in six weeks by the department of industrial policy and promotion, the statement said.

Jaitley, who briefed reporters about the cabinet decision, clarified that the central government will refund only 58% of the taxes it collects from these units as it transfers 42% of its tax proceeds to states under the formula recommended by the 14th Finance Commission. The respective states have to take a call on refunding the 42% of GST proceeds they get from these units.

“The refund benefit, it seems, will be available up to 2027 and may be customized separately for different industry sectors,” said Abhishek Jain, tax partner, EY.

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Source: Livemint
Registrations under GST likely to hit 1 crore this financial year

Registrations under GST likely to hit 1 crore this financial year

gst registration

The government estimates that total registrations, old and new, under the GST will add up to between 90 lakh and one crore by the end of the financial year, substantially increasing the tax base and ushering in greater compliance.

Official sources said multiple registrations under VAT, excise and service tax are expected to be eliminated once GST is fully implemented, and this will mean that the total number of old registrations will drop from 86 lakh to around 70 lakh.

However, the addition of those businesses that go out of the tax net and even entire sectors like textiles will push the registrations to close to a crore or 10 million.

This will mean the number of tax assessees could jump between 28% (if registrations touch 90 lakh) and 40% (if registrations touch a crore) over the older registrations that have migrated to the new regime, sources said.

A drop in the older registrations is explained, said officials, by a reduction in multiple registrations under VAT, service tax and excise.

So, the increase in the number of tax assessees is calculated on the basis of the number of businesses that have migrated to the new regime.

Government officials are breathing a little easier as the initial rollout has not resulted in any serious or prolonged disruptions. The number of new registrations is increasing, having touched 11 lakh over the weekend.

Protests by the textile sector in Gujarat, in particular, do not seem to have moved the Centre, which is not keen to make an exemption.

“This gives us comfort that there is a horizontal expansion of base. This will also lead to greater compliance,” finance minister Arun Jaitley said in Chennai.

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On Saturday, a new milestone was reached as new registrations crossed the 10 lakh mark. About two lakh new registrations are pending.

The sharp spurt in new registrations has brought cheer to policymakers who were expecting an increase in the tax base. Widening of the tax base and pushing up growth are two of the key benefits of GST identified by the government.

Sources said that the number of new registrations may go up as businesses have time to register with GST netowrk (GSTN), the IT backbone as and when they cross the threshold of Rs 20 lakh.

Economists also expect a significant expansion in the tax base even if 8-9 lakh of the 12 lakh new registrations file returns. The government’s drive against black money has also resulted in a sharp uptick in returns being filed on the direct taxes side as well.

An overall expansion of the tax base augurs well for the economy and may ultimately help the government in lowering tax rates.

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Source: TOI
Maharashtra tops the list of fresh GST registrations, Gujarat comes 2nd

Maharashtra tops the list of fresh GST registrations, Gujarat comes 2nd

Maharashtra, Gujarat and Uttar Pradesh have emerged as the states from where the maximum number of applications for fresh registration under the recently-launched Goods and Services Tax has been received.

The GST Network (GSTN), which that supports the entire IT mechanism for the new tax structure, has so far received about 10 lakh applications for new registrations. Out of these, 1,32,448 applications have poured in from Maharashtra while about 90,000 came from Gujarat and over 87,000 from Uttar Pradesh.

West Bengal and Tamil Nadu made up the top part of the list with more than 75,000 applications each.

“We have received about 10 lakh new registrations. We are receiving about 40-45,000 applications every day,” GSTN chairman Navin Kumar told Hindustan Times.

The number of fresh registrations has been relatively lower in the north-eastern states. Businesses have time until July 30 to register under the GST — touted as the one tax structure for the entire country– which was launched on the midnight of June 30.

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new gst registration

Kumar said that of the existing 80 lakh taxpayers, who have been paying service tax, central excise or value added tax, about 71 lakh have migrated to GST. While the window to migrate from the existing structure to the unified tax regime will be open till July end, Kumar said several may not migrate to the new tax structure as businesses with turnover of up to Rs 20 lakh were exempted from Goods and Services Tax.

Government sources said that the GST Council is set to tweak tax rates of a few items, besides bringing in procedural changes.

Kumar added that a 12-hour helpline—operating from 8 am to 8 pm– has been set up to assist merchants in uploading their invoices and other data relevant for fresh registration under GST.

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Source: HT
GST: GSTN to accept fresh registrations from June 25

GST: GSTN to accept fresh registrations from June 25

The Goods and Services Tax Network (GSTN) portal which has so far only been accepting requests for migration from the current indirect tax regime to the GST system will now start accepting fresh registrations starting June 25.


It will also be open from June 25 for a period of three months for existing taxpayers registered under central excise, service tax and value-added tax (VAT), GSTN said in a statement here on Friday.

“Apart from taxpayers who have not yet migrated, new taxpayers who are entering the tax bracket for the first time can also now start registering from June 25. With just seven days to go for the GST implementation, we are certain of a smooth roll out of the regime,” Navin Kumar, Chairman, GSTN said.

The registration will also start for Goods and Services Tax (GST) practitioners, Tax Deductors at Source (TDS) and e-commerce operators (TCS), GSTN said in a statement here on Friday.

The GSTN portal was open from November 8, 2016, till April 30, 2017, and then again for 15 days in June for enrolment of existing taxpayers.

Registration with the GSTN is necessary for doing business in the GST regime as businesses will have to upload monthly supply data as well as file return forms on this portal.

“People should not panic. If you are left out, you will get another opportunity because the law says anybody who is registered under taxes which are subsumed under GST if they have a valid PAN then they will be given a valid registration,” Kumar said.

“We are going to send provisional registration to 65.5 lakh taxpayers who have validated their email addresses and mobile numbers. Those who have not completed Part-B of the enrolment form, can do so in next three months and get their permanent registration certificate,” he added.

The GST referred as the most significant tax reform in India post-independence, would usher in a common national market by doing away with a complex web of local and central taxes and incorporating them into a single levy.

“As the technology provider of the regime, GSTN has been working tirelessly to ensure there are no delays in the commencing of the ambitious indirect tax regime. The GSTN has set up a robust portal already equipped to handle as many as 2.6 billion transactions every month. The GST Common Portal will enable taxpayers to meet the GST compliance requirement like filing returns and making tax payments,” the statement said.


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Source: ET


How to Register For GST: A Step-By-Step Guide

How to Register For GST: A Step-By-Step Guide

GST or Goods and Services Tax, which the government plans to implement from July 1, 2017, is likely to benefit the entire country by widening the tax net and by providing seamless credit of input tax. However, for the successful implementation of GST across the country all existing Central Excise and Service Tax assesses need to migrate to GST by doing their enrollment on the GST portal. Those who have a turnover of more than Rs. 20 lakh (Rs. 10 lakh for North East states) in a financial year need to do their enrollment under GST. Those who do inter-state supply or sell products through e-commerce sites must mandatorily register for GST. No threshold limit is applicable to these tax payers.

Here is a guide on how to register for GST:

1) All eligible assesses have been provided with a provisional ID and password by the Central Board of Excise and Customs, which they need to log on to the GST common Portal where they would be required to fill and submit Form 20 along with necessary supporting documents. Log on to ACES portal using the existing ACES User ID and Password.

gst registration 1

2) Either follow the link to obtain the Provisional ID and Password OR navigate using the Menu.

gst registration 2
gst registration 3

3) Make a note of the Provisional ID and password that is provided. In case a provisional ID is not provided, please refer the Next Step section. In case of further doubt please contact the CBEC Helpdesk at either 1800-1200-232 or email at

gst registration 4

Once you have obtained the Provisional ID and Password, log on to the GST Common Portal using this ID and Password. The GST Common Portal has made available a manual on how to fill the Form-20. It is available on

Registering under GST will allow the assesses to claim input tax credit. This means, at the time of paying GST collected on sales, assesses can reduce the GST they have paid on inputs used for their business. If you are unregistered, businesses to which you supply will have to do compliance on your behalf, which may discourage them to deal with you, the tax department said.

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