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GST Registration & Compliance

GOODS AND SERVICES TAX (GST) Registration & Returns

GST is an indirect tax levied in India on the supply of goods and services. GST is levied at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer.

Goods and Services are divided into five tax slabs for collection of Tax – 0%, 3%, 5%, 12%, 18% and 28%. Petroleum products, alcoholic drinks, electricity are not taxed under GST. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.

The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian Government. In the GST Regime, a business whose turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for NE and hill states) is required to register as a normal taxable person. For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.

  • Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
  • Businesses with turnover above the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for North-Eastern states, J&K, Himachal Pardesh and Uttarakhand)
  • Casual taxable person / Non-Resident taxable person
  • Agents of a supplier & Input service distributor
  • Those paying tax under the reverse charge mechanism
  • Person who supplies via e-commerce aggregator
  • Every e-commerce aggregator
  • Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

An Offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000. The penalty will at 100% of the tax amount due when the offender has deliberately evaded paying taxes.

After obtaining GST registration, the entity will be required to file GST returns periodically. In the GST regime, any regular business has to file Monthly returns and one annual return. There are separate returns required to be filed by special cases such as composition dealers.