GST

What is GST?

GST, or Goods and Services Tax, is a single tax applied to the sale of goods and services at pre-defined rates. Because GST is an indirect tax, the seller collects GST on behalf of the customer and pays it to the Government, except under some circumstances mentioned in the law.

GST replaces multiple taxes, making things simpler for businesses and consumers. This tax is levied on the value added at each stage of production, reducing the burden of multiple taxes and promoting transparency.

Who needs to get GST registration?

As per law on Goods and Services Tax (GST), businesses whose turnover exceeds the threshold must register for GST.

Further, some categories of people are required to get GST registration mandatorily without any threshold limit like supplier on an e-commerce aggregator (Amazon, Flipkart etc.)

If a person fails to obtain GST registration even after falling under the specified criteria, they will be liable to penalty as prescribed under the law.

Documents required for GST registration

It is good to have these documents to get GST registration:

• Aadhaar card
• PAN card
• Cancelled cheque
• Address proof
• Photograph

Further, some additional documents may be required depending on the type of business.

Types of GST

There are four types of GST: CGST, SGST, UTGST & IGST.

CGST: It is collected by the Central Government on sales made within the same state as seller (intra-state sales)

SGST: It is collected by the State Government on sales made within the same state as seller (intra-state sales)

UTGST: It is collected by the Union Territory Government on sales made within the same union territory as seller (intra-state sales)

IGST: It is collected by the Central Government on sales made in a different state as seller (inter-state sales)

Returns under GST

• GSTR-1: Monthly return for reporting outward supplies of taxable goods and/or services. Due by the 11th of the next month.
• GSTR-3B: Monthly summary return for reporting outward supplies and input tax credit claimed, along with tax payment. Due by the 20th of the next month.
• GSTR-4: Annual return for taxpayers under the composition scheme. Due by the 30th of the month succeeding the financial year.
• GSTR-5: Monthly return for non-resident taxable persons. Due by the 20th of the next month.
• GSTR-5A: Monthly return for non-resident Online Information Database Access and Retrieval (OIDAR) service providers. Due by the 20th of the next month.
• GSTR-6: Monthly return for input service distributors to distribute eligible input tax credit to branches. Due by the 13th of the next month.
• GSTR-7: Monthly return for registered persons deducting tax at source (TDS). Due by the 10th of the next month.
• GSTR-8: Monthly return for e-commerce operators containing details of supplies and tax collected at source. Due by the 10th of the next month.
• GSTR-9: Annual return for regular taxpayers. Due by the 31st of December of the next financial year.
• GSTR-9C: Annual self-certified reconciliation statement. Due by the 31st of December of the next financial year.
• GSTR-10: Final return for taxpayers whose GST registration is cancelled. Due within three months of the date of cancellation or the date of cancellation order, whichever is later.
• GSTR-11: Monthly return for persons having a Unique Identification Number (UIN) and claiming a refund. Due by the 28th of the following month.
• ITC-04: Annually for principal/job-workers with Annual Aggregate Turnover up to Rs. 5 crore and half-yearly for those with Annual Aggregate Turnover exceeding Rs.5 crore. Due on 25th April for Annual Aggregate Turnover up to Rs. 5 crore and on 25th April and 25th October for those exceeding Rs. 5 crore.
• CMP-08: Quarterly statement and challan for taxpayers under the composition scheme. Due by the 18th of the month succeeding the quarter.

These returns help businesses report their sales, claim input tax credits, and ensure compliance with GST regulations.

E-Invoicing under GST

Recently, the Central Board of Indirect Taxes and Customs (CBIC) notified that e-invoicing is now applicable to businesses with a turnover exceeding Rs. 5 crore. It’s essential to understand that taxpayers must comply with e-invoicing if their turnover exceeds the specified threshold in any financial year from 2017-18 onwards up to 2021-22. This notification expands the scope of e-invoicing requirements, ensuring compliance for a broader range of businesses.

E-Way Bill

An e-Way Bill is an electronic document generated on the e-Way Bill Portal for the movement of goods. According to GST regulations, a registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (for a single invoice/bill/delivery challan) without an accompanying e-Way Bill. This bill must be generated on the official e-Way Bill Portal, ewaybillgst.gov.in, to ensure compliance with GST requirements and facilitate the smooth movement of goods.

Further, in some cases, it is mandatory to generate an e-Way bill even if the value of the consignment value is less than Rs. 50,000.