GST Registration
5 Points You Must Know About GST Registration
1. Selection of Right GST Scheme:
The selection of a suitable GST scheme at the time of GST registration is of utmost importance. Whether you opt for composition or regular scheme is a matter of careful selection. In other words, simply selecting the composition scheme for convenience may not be the right choice for your business.
2. Correct HSN Code:
It is essential to put in the correct HSN code while applying for new registration. You must cross-check the HSN code mentioned in the application form.
3. GST Compliant Invoice Format :
As per the GST rules and regulations, the Invoice must contain the pre-prescribed fields; otherwise, the department may impose a penalty.
4. Compulsory Records and Registers:
Every GST-registered business needs to maintain prescribed records and registers. Otherwise, it may result in future legal problems.
5. GST Return Timeline:
You should also be aware of the due dates of returns applicable to your business. Moreover, even if there is no business activity after the registration, you need to file a “Nil” return. On the other hand, this “Nil” return also has to be filed within the due date to avoid penalty.
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FAQ`s About GST Registration
1. What is the validity of the GST registration certificate?
The validity of GST registration is lifelong. However, the validity of temporary registration is 90 days.
2. What is the GST number?
GST number, also known as GSTIN, is a unique 15-digit identification number issued to every taxpayer registered under GST. Moreover, this number is PAN-based.
3. Is GST registration mandatory for MSME?
No, GST registration is not mandatory for MSME. However, the general GST registration rule is also applicable to MSMEs.
4. How to check GST registration status?
To check the GST registration status, we need to perform the following steps.
Firstly, log in to the GST website by using a user id and password.
Secondly, navigate to Services > Registration>Track Registration status> again select registration from the drop-down menu.
Finally, enter the ARN number and click on Search. Now, the screen will show your GST registration status.
5. How much time does GST registration take?
GST registration usually takes seven working days.
6. How to download GST registration certificate?
To download the GST Registration certificate, we need to perform the following steps:
Firstly, log in to the GST website by using a user id and password.
Secondly , navigate to Services > User services> View/download certificate
Finally, Click on the download icon to download the certificate.
7. What is the consent letter for GST?
The premise`s owner issues a certificate regarding his no objection to using his premises for registration under GST. This no-objection certificate is also known as a consent letter.
8. What is the format of the consent letter for GST?
There is no prescribed format for consent letters. But, the owner of the premises must give him no objection regarding the registration of premises under the GST.
9. What is the GST registration limit?
The GST registration limit depends upon the state/UT where the business is situated. States/UT has been divided into the “Normal” and “Special” category for this purpose. The registration limit for the “Normal” type of states is as follows:
For the sale of goods: Aggregate Turnover exceeds Rs. 40 Lacs
For the sale of Services: Aggregate Turnover exceeds Rs. 20 Lacs
The registration limit for the “Special” category is as follows:
For the sale of goods: Aggregate Turnover exceeds Rs. 20 Lacs
For the sale of Services: Aggregate Turnover exceeds Rs. 10 Lacs
10. Is a trade license mandatory for GST registration?
No. A trade license is not mandatory for GST registration.
11. Does a consent letter for GST required on stamp paper?
No. There is no need for stamp paper for the consent letters. However, in case of any suspicion, GST officials may require it on stamp paper.
12. What is a letter of authorization for GST?
It is simply an authority letter favoring someone to sign or do all other work on behalf of the person issuing the authorization letter.
13. Is GST registration mandatory for the export of services?
Yes, GST registration is mandatory for the export of services. Moreover, the export of services is an interstate supply and is liable for registration. Although, technically speaking, there is an exemption of 20 Lacs, it is better to register for all practical purposes to avoid any legal issues.
14. What is the ca certificate for GST refund?
A certificate from CA is required to get GST refund where the amount involved is more than Rs.2 Lacs. Moreover, this certificate is to be issued as per Annexure 2 of Form GST RFD 01.
15. What is a GST clearance certificate?
The GST department issues the GST clearance certificate certifying that the taxpayer has paid all his GST tax till the date mentioned in the certificate and no GST is pending or due.
16. Does GST on directors’ remuneration payable?
The applicability of GST on directors` remuneration depends on whether it is paid out of employee and employer relationship or otherwise. No GST is applicable if it is paid out of the employee and employer relationship. If it is paid otherwise, then the GST is applicable on a reverse charge basis.
17. What is the GST BRN number?
The acronym BRN stands for bank Reference Number. So, when you pay GST through a bank, a challan is issued and given to you. Moreover, in this challan, a unique number is put by the bank. This unique transaction number is known as the BRN number.
18. What is the export of services under GST?
The meaning of “export of services” under GST is quite different from what we usually understand. Usually, when we provide services to a person outside India and payment is received in foreign exchange, we consider is as an export of services. But, in GST, some additional conditions need to be fulfilled. The concept of “distinct person” and “place of supply” also plays a role in this determination under GST. The relevant sections are 2(6), Explanation 1 in Section 8, and Section 13 of the IGST Act. One has to see various circulars, notifications, and FAQs issued by the department also. So, it is better to take the services of an expert to determine whether your case falls under the definition of export under GST or not.
19. What is the GST late fee calculator?
GST late fee calculator is an online utility that helps determine the late fee calculation for a particular period. Further, the late fee varies from state to state and from specific month to month, so it is better to use these online utilities. We can simply search “gst late fee calculator” in Google and find plenty of options. We can select any of them.
20. What is the rate of interest on GST late payment?
The usual rate of interest is 18% per annum in case of GST late payment. However, in case of reversal of wrong input tax credit or adjustment of previous output tax error, the interest rate is 24% per annum.
21. How to check GST refund status?
To check the GST Refund status we need to perform the following steps:
Firstly, log in to the GST website by using a user id and password
Secondly, navigate to Services > Track Application Status
Thirdly, select the Refund option > Enter ARN or Filing Year
Finally, Click SEARCH to check the GST refund status.
22. How to change your mobile number in the GST portal?
We need to do the following steps to change the mobile number in the GST portal:
Firstly, log in to the GST website by using a user id and password
Secondly, navigate to Services > Registration>Amendment of Registration Non-core Fields> authorized signatory
Finally, click on the ‘Add new’ button. Put the new mobile number you want to keep and click the save button.
