GST Return Filing

• GSTIN (GST identification number) is a 15 digits unique number allotted to every business which gets registration under GST. The format of GSTIN is:

  • First two digits represent the state code
  • Next ten digits are the PAN number of the entity or person
  • Next one digit shows the number of entity in a state of same PAN holder
  • One digit is alphabet 'Z' by default
  • Last one digit is sum of all the numerical digits in PAN

No, there is no need to get GST number until the turnover does not exceed the limit of 20 lakhs in general category states and 10 lakhs in special category states or the business does not fall in the mandatory registration category.

• Display GST Registration details in place of business
• Identify the place of supply to decide whether to charge CGST & SGST or IGST
• Start issuing the GST compliant invoices
• Charge and collect GST on all taxable sales made
• Begin to avail input tax credit on purchases
• Maintain proper accounts & records as per GST law
• File GST Returns: GSTR-1 and GSTR-3B or GSTR-4
• Know that you may be subject to reverse charge

• CGST: Tax component levied by the Central Government over the intra-state trade transactions.
• SGST: Tax component levied by the State Government over the intra-state trade transactions.
• IGST: Tax component levied by the Central Government over the inter-state trade transactions.

As per GST law, every business who is liable to take GST registration will have to get separate registration for each state where business is operating.

Composition scheme is an optional scheme introduced for the small businesses. Under composition scheme:

• Three monthly return will be summarized to quarterly basis.
• The tax rate will be 2% for manufacturers, 5% for restaurant service sector, 1% for other suppliers.
• Business cannot avail input tax credit.
• Business cannot issue taxable invoices.

• Any existing taxpayer whose annual turnover did not cross the Rs.1.5 crore threshold in the preceding financial year. However, service providers with the exception of restaurants and caterers are not eligible, neither are casual taxable persons nor non-resident Indians.

• Persons already having service tax/VAT/excise registration
• Businesses with interstate taxable supply of goods or services from one state to another
• Casual taxable persons making taxable supply
• One who are required to pay tax under the reverse charge
• Agents of supplier
• Non-resident person making taxable supply
• Input service distributor
• E-commerce operator
• Successor or transferee of a business
• Person supplying online information and database access or retrieval services

• Person supplying agricultural produce from cultivation
• Goods and services fall under the nil GST slab rate
• Person makes supplies which are covered under reverse charge

• GST registration does not have an expiry date. Hence, it will be valid until it’s cancelled, surrendered or suspended. Only GST registration for non-resident taxable persons and casual taxable persons have a validity period that is fixed by the authorities while issuing the GST registration certificate.

An E-way bill is an electronic document which serves as an evidence to the movement of goods having a value of more than Rs. 50,000. It available to a supplier or an individual transporting goods. It has two components; Part A, with details such a GSTIN of the supplier and recipient, place of delivery, value of goods, HSN code, reason for transportation and part B, with details of the vehicle and transport documents.

It is a wholly digital interface which eliminates the need for state boundary checks. It will facilitate faster movement of goods and improve the turnaround time of trucks thus reducing costs for the supplier.

As per rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior to the commencement of transport of goods.

It is mandatory to generate E Way bill in all cases wherein the value of consignment is more than Rs. 50,000. However, it is not necessary to generate one wherein the goods are being transported by a non- motorized conveyance or if they are being transported from the port, airport, air cargo complex and land customs station for clearance by customs.

Any taxable person who transports any goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to pay a penalty of Rs. 10,000 or the amount of tax sought to be evaded (whichever is higher).