The dealer is required to take registration under this law if his aggregate turnover in a financial year exceeds Rs.9 lakhs. However, if the dealer is conducting business inNorth Eastern State then,he is required to take registration if the turnover exceeds Rs.4 lakhs.
Following categories of persons are compulsorily required to get registered under this Act:
- (i) Person making any inter-State taxable supply
- (ii) Casual taxable person
- (iii) Person who are required to pay tax under reverse charge
- (iv) Non-resident taxable persons
- (v) Person who are required to deduct tax at source
- (vi) Person who supply goods and/or services as an agent
- (vii) Input service distributor;
- (viii) Persons who supply goods and/or services through E-commerce operator
- (ix) Every E- commerce operator
- (x) An aggregator of services
The dealer has to take registration in the State from where taxable goods or services are supplied. A supplier has to obtain registration in every such State from where taxable goods or services are supplied. Also, a person having multiple business verticals in the State may obtain a separate registration for each business vertical.
2 GST score card
Every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of this Act. The GST compliance rating score shall be updated at periodic intervals and intimated to the taxable person and also placed in the public domain.
3 Time of Supply
CGST/SGST shall be payable at the earliest of the following dates, namely:
- Date on which the goods are removed for supply to the recipient
- Date of issuing invoice by supplier; or •
- Date of receipt of payment by supplier; or
- Date on which recipient shows the receipt of the goods in his books of account.
4 Taxable Event
The taxable event will be supply of goods or services. Supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration.
- Importation of service, whether or not for a consideration
- Permanent transfer/disposal of business assets.
- Temporary application of business assets to a private or non-business use.
- Services put to a private use.
- Assets retained after deregistration.
5 Valuation of supply
Valuation will be same for IGST/CGST/SGST, which aregiven below:
Transaction Value. • Transaction value of goods or services of like kind: Where value of supply cannot be determined under previous method, the value shall be determined on the basis of transaction value of goods and/or services of like kind and quality supplied at or about the same time to customers.
Computed Value Method: Where value cannot be determined under previous method, it shall be based on computed value which shall include cost of production, manufacturing or processing of the goods or, the cost of the provision of services.
Residual Method: In any other case the value shall be determined using reasonable means consistent with the principles and general provisions of these Rules.
6 Utilization of credit:
Note: The input tax credit on account of CGST shall not be available for payment of SGST.
The Central orState Government may mandate certain departments (via, local authority, Govt. agencies) to deduct tax at the rate of one percent on notified goods or services, where the total value of such supply, under a contract, exceeds Rs 10 lakhs. Such that any refund of more than Rs. 10 lakhs provided by the authorities will not be liable to TDS provisions. The Deductee will be able to claim credit of the tax deducted and reflected in the return of the deductor in his electronic cash ledger. Which means that this amount may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the Act or the rules
A person can claim refund of any tax interest and even input tax credit (prescribed cases) by making an application to the prescribed officer of IGST/CGST/SGST before the expiry of 2 years from the relevant date as may be prescribed. It has been provided that the limitation of two years shall not apply where such tax or interest or the amount has been paid under protest. No documentary evidence is required to be furnished if the claim of refund is below Rs. 5, 00,000.
Following returns are to be filed by various suppliers:
- (a) First Return: Every registered taxable person paying CGST/SGST on all intra-State supplies of goods and/or services shall have to furnish the first return from the date on which he became liable to registration till the end of the month in which the registration has been granted.
- (b) Monthly Return: Every registered taxable person shall have to e-file a monthly return for inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars within 20 days after the end of such month.
- (c) TDS Return: Every dealer who is required to deduct tax at source shall furnish a return electronically within 10 days after the end of month in which such deduction is made.
- (d) Return for Input Service Distributor: Every Input Service Distributor shall file e-return for every calendar month or part thereof, within 13 days after the end of such month.
- (e) Return for Composition Dealer: Dealers paying tax under composition scheme shall have to furnish a return for each quarter or part thereof, electronically within 18 days after the end of such quarter.
- (f) Annual return: Every registered taxable person shall have to furnish an annual return for every financial year electronically on or before the 31st day of December following the end of such financial year in which such supplies were made.
- (g) Final return: Every registered taxable person who applies for cancellation of registration shall have to furnish a final return within 3 months of The date of cancellation or Date of cancellation order, Whichever is later
10 Special Audit When any officer, not below the rank of [Deputy/Assistant Commissioner] is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may direct such taxable person by notice in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant.
11 Transitional Provisions
- Every person already registered under existing law will be issued a certificate of registration on a provisional basis. This certificate shall be valid for period of 6 months. Such person will have to furnish the requisite information within 6 months and on furnishing of such information, final registration certificate shall be granted by the Central/State Government.
- A registered taxable person will be entitled to utilize CENVAT credit/Value Added Tax carried forward in a return furnished by him in respect of the period ending with the day immediately preceding the appointed day.
- A registered taxable person shall be entitled to takecredit of the unavailed CENVAT credit/input tax credit in respect of capital goods for the period ending with the day immediately preceding the appointed day.