GST DUNIYA. (Part- 3)

GST DUNIYA. (Part- 3)

Hello Readers,

Hope you had read the previous parts of the GST Duniya series, if not, then read it from here:

Part 1

Part 2

Today we will discuss about the Registration procedure and exempted goods & services.

Let’s start:

Registration:

Every person carrying out a taxable supply of goods or services whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as applicable will be required to register as a normal taxable person. GST Registration is important because mainly it will enable to avail benefit of input tax credit. Also, timely registration will help you avoid any kind of interface with tax authorities.

It is compulsory for All existing Central Excise and Service Tax assessees and VAT dealers to migrate to GST. To migrate to GST, assessees would be provided a Provisional ID and Password by CBEC/State Commercial Tax Departments.

Migration To GST :

Here is the procedure to migrate into  GST

  1. Visit the GST common portal gst.gov.in
  2. GST homepage will be displayed
  3. For existing user login,click on existing user login button
  4. Login page will be displayed.
  5. Enter the username & password that you had been created,now enter the captcha text which will appear on screen.
  6. Click the login Button.
  7. Welcome page will be displayed with the name of your business on that page.
  8. Click the Continue button.
  9. The dashboard will be displayed and click on dashboard menu.
  10. The provisional Id enrolment command displays the enlorment application.
  11. Then, THE MY SAVED APPLICATION command allows you to view the enrolment application that you have saved but not submitted yet.
  12. The register/update DSC command allows you to register you DSC i.e. Digital Signature Certificate for the first time with the GST common portal or update your existing DSC on portal.

All Taxpayers who have valid PAN will be migrated to GST

  • Existing Taxpayers can enroll themselves through provisionally provided GSTIN (Goods and Services Tax Identification Number) called as Provisional ID and update their business related details on the GST portal.
  • Out of 7 mandatory fields GSTN have 4 fields with it: • State • PAN • Name of Business Entity • Constitution of Business entity

The assessee need to use this Provisional ID and Password to login to the GST Common Portal (https://www.gst.gov.in) where they would be required to fill and submit the Form 20 along with necessary supporting documents. After obtaining provisional ID, user shall apply for final registration under GST act.

Multiple Registrations Under GST : Following are the conditions in which multiple registration shall be taken :

1.     Person conducting business in different states :

A person having conducting business or service in different states,shall obtain a separate registration for each business . For e.g. a person conducting business in saharanpur of uttar Pradesh and in karnal of Haryana has to apply for different GST registrations for each state.

  1. Person with multiple business verticals in a state :

A person with multiple business verticals in a state may obtain a separate registration for each business vertical.

Note that PAN is mandatory to apply for GST registration (except for a non-resident person who can get GST registration on the basis of other documents).

A registration which has been rejected under CGST Act/SGST Act shall also stand rejected for the purpose of SGST/CGST act.

  • It means that if a registration has been rejected under CGST act then it shall also stand rejected under CGST as well as SGST act.
  • If a registration has been rejected under SGST act then it shall also stand rejected under CGST as well as SGST act.

Important points in context of GST Registration:

  • The most important point regarding registration is that GST registration is allotted on the basis of PAN.
  • A single form can be used to register for CGST,SGST,IGST.
  • Only one GSTIN is allotted which is sufficient for a taxpayer to remit CGST,SGST and IGST.

After Concept of Registration, Now I am specifying the exempted goods under GST :

  • Aids & implements used by handicapped persons.
  • Agricultural implements manually operated or animal driven.
  • Animal feeds and suplements.
  • Animal shoenails.
  • Atta, Maida, Suji, Besan, wheat, flour, paddy, rice and pulses.
  • All bangles excluding those made of precious metal.
  • Betel leaves.
  • Books, periodicals and journals including maps, charts and globe.
  • Bread (Un-branded).
  • Cart driven by animals.
  • Charkha, Amber Charkha.
  • Handlooms, Handloom fabrics and Gandhi Topi.
  • Chalk stick
  • Chicken products.
  • Coarse grains.
  • Condoms & Contraceptives.
  • Cotton & Silk yarn in hank.
  • Curd, Lassi, butter milk & saturated milk.
  • Earthen pot and clay lamps.
  • Electrical energy.
  • Firewood except Casurina and Eucalyptus timber.
  • Fish net, fish fabrics & fish seeds, prawn/shrimp seeds.
  • Fresh milk and pasteurized milk.
  • Fresh plants, saplings and fresh flowers.
  • Fresh vegetables, including potatoes & fruits.
  • Goods taken under customs bond for re-export after manufacturing or otherwise.
  • Human Blood & blood plasma.
  • Idols made of clay.
  • Indigenous handmade musical instruments.
  • Items covered by PDS .
  • Khadi garments /goods and made-ups
  • Kumkum, Bindi, Alta & Sindur.
  • Mango stones and mango kernels.
  • Hatchable eggs and livestock, Fresh meat, fish, prawn, and other aquatics.
  • Mekhla, Chaddar.
  • Muddhas made of sarkanda, phool bahari jhadoo.
  • National Flag.
  • Non-judicial stamp sold by Govt. Treasuries, postal items like envelope, postcard etc. sold by Govt., rupee note &
  • Nutan kerosene wick stove.
  • Organic manure.
  • Raw wool & Jute.
  • Religious pictures not for use as calendar.
  • Sacred thread, commonly known as yagnapobit.
  • Salt (Branded or otherwise).
  • Scale, colour box, painting box and drawing book, exercise book and Mathematical instruments for Students sold
  • by school canteen .
  • Saplings and Seed of all kinds, other than oil seeds.
  • Semen including frozen semen.
  • Tender green coconut.
  • Toddy, Neera & Arak.
  • Vaccines of all kinds.
  • Silk worm laying, cocoon & raw silk.
  • Slate and slate pencils.
  • Unbranded broomsticks.
  • Unprocessed green leaves of tea.
  • Water other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed
  • Plantain leaves.
  • Poha, murmura and lai.
  • Prasdam by religious institutions.

Here are some of exempted services under GST :

  • Services by Government or a local authority excluding the following services

(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and

agency services provided to a person other than Government;

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers; or

(iv) any service, other than services covered under clauses (i) to (iii) above, provided to business entities.

  • Services by the Reserve Bank of India
  • Services by a foreign diplomatic mission located in India
  • Services relating to cultivation of plants and rearing of all life forms of animals
  • Service by way of access to a road or a bridge on payment of toll charges
  • Transmission or distribution of electricity by an electricity transmission or distribution utility
  • Services by way of renting of residential dwelling for use as residence
  • Services by way of—

(i) extending deposits, loans or advances in so far as the consideration is represented by way of interest

or discount (other than interest involved in credit card services);

(ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign

exchange or amongst banks and such dealers;

  • Services by way of transportation of goods

(i) by road except the services of—

(A) a goods transportation agency; or

(B) a courier agency;

(ii) by inland waterways;

  • Services provided to the United Nations or a specified international organization.

Exemption may be notified by way of issuing notification under section 55 of CGST/SGST Act.

  • Services provided by operators of the Common Bio-medical Waste Treatment Facility to a clinical

establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto;

  • Services by a veterinary clinic in relation to health care of animals or birds;
  • Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of
  • charitable activities;[Charitable activities may be defined as presently in notification No 25/2012-ST.
  • Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of
  • External Affairs of the Government of India, under bilateral arrangement;
  • Services provided by

(a) an arbitral tribunal to –

(i) any person other than a business entity; or

(ii) a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state)in the preceding financial year;

  • Services provided,-

(a) by an educational institution to its students, faculty and staff;

(b) to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme sponsored by the Government;

(iii) security or cleaning or house-keeping services performed in such educational institution;

(iv)services relating to admission to, or conduct of examination by, such institution; upto higher secondary.

 

In the next part, we will explain about Section 10 i.e. Composition Levy and Input Tax Credit.

So, Don’t miss it.

In case of any query related to above article, the questions can be asked by commenting in the comment box or the author can be contacted personally at bansalaayushi1992@gmail.com or  info@atulkhurana.com 

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