GST stands for Goods and Services Tax. GST will be a single destination based consumption tax that will replace existing taxes, including CENVAT, Octroi, Sales Tax, and Excise Duty, etc. Unlike the old tax structure, where the state of origin received tax revenue, in the new GST model the state in which goods and services are consumed is the state that will receive the revenue.
In order to clear doubts which arises in the mind of public during registration process under GST, a list of frequently asked question is prepared which is as given below:
Question 1 : Does aggregate turnover include value of inward supplies received on which RCM is payable?
Answer: Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
Question 2 : What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
Answer: New registration would be required as partnership firm would have new PAN.
Question 3 : A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?
Answer: He is liable to register if the aggregate turnover (all India) is more than 20 lacs (Rs. 10 lacs in Special Category States) or if he is engaged in inter-State supplies.
Question 4 : Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued?
Answer: Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.
Question 5 : Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?
Answer: If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
Question 6 : Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
Answer: Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act.
Question 7 : Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?
Answer: A supplier of service will have to register at the location from where he is supplying services.
Question 8 : Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Answer: Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
Question 9 : If there are two SEZ units within same state, whether two registrations are required to be obtained?
Answer: SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.
Question 10 : Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?
Answer: Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
Question 11 : When is registration in other state required? Will giving service from Nasik to other state require registration in other state?
Answer: If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
Question 12 : I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure?
Answer: A separate & new registration is required for ISD.
Question 13 : I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated.
Answer: The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
Question 14 : I have ST number on individual name and have migrated to GST.I wish to transfer this on my proprietorship firm.
Answer: This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
Question 15 : Please tell if rental income up to 20 lacs attracts GST or attracts any other charge?
Answer: GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
Question 16 : If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs?
Answer: A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
Question 17 : Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover > 20/10 Lakh?
Answer: There is no liability of registration if the person is dealing with 100% exempt supplies.
Question 18 : If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration?
Answer: Yes, you would be treated as a normal taxable person.
Question 19 : Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?
Answer: Separate registration as tax deductor is required.
Question 20 : Is separate registration required for trading and manufacturing by same entity in one state?
Answer: There will be only one registration per State for all activities. But, you have the option to be registered as a separate business vertical.
Question 21 : I am registered in TN and getting the service from unregistered dealer of AP, should I take registration in AP to discharge GST under RCM?
Answer: Any person who makes make inter-state taxable supply is required to take registration. Therefore in this case AP dealer shall take registration and pay tax.
Question 22 : Is there any concept of area based exemption under GST?
Answer: There will be no area based exemptions in GST.
Question 23 : If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice?
Answer: Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to Delhi)
Question 24 : How long can I wait to register in GST ?
Answer: An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.
Question 25 : What If I am not liable to register under GST but I was registered under Service tax ?
Answer: You can apply for cancellation of Provisional ID on or before 31st July 2017.
Question 26 : When turnover of agents will be added to that of the principal for registration?
Answer: No.
Question 27 : If I am not an existing taxpayer and wish to newly register under GST, when can I do so?
Answer: You would be able to apply for new registration at the GST Portal gst.gov.in
Question 28 : If I buy raw material from supplier unregistered in GST, do I have to pay GST in RCM and can I avail ITC of the same?
Answer: Yes, you have to pay GST via RCM. You can avail ITC of the GST so paid if you are otherwise eligible.
Question 29 : Can an unregistered dealer supply goods to other States if his turnover is below Rs. 20 lakhs?
Answer: No. The supplier would be liable to obtain registration in case of inter-State supplies irrespective of his turnover.
Question 30 : Existing taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration?
Answer: The registration in other State would come under fresh registration.
Question 31 : Is registration necessary if only interstate supply of Nil rated goods is being made?
Answer: If exclusively making supplies of Nil rated supplies, registration is not compulsory. Kindly refer section 23 of CGST Act.
Question 32 : Whether franchisor company will have to take registration in each state where outlets are located?
Answer: No, a franchisor company need not take registration in a state where only its franchisee is located.
Question 33 : If I’m starting new business today, still need to get TIN and then apply for GST? Or can I directly register with GST?
Answer: You may directly take GST registration on www.gst.gov.in
Question 34 : A firm dealing exclusively in exempted products has GST registration; does it need to file return?
Answer: If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.
Question 35 : My all outward supplies are export services. In this case is it compulsory to register under GST?
Answer: Yes. Since, exports are zero rated, one needs to register for GST to claim refunds.
Question 36 : Can a person operating two different companies with different names but with same PAN get two GST registrations?
Answer: One PAN holder gets one registration in every state, but he has the option of getting different registrations for different business verticals.
Question 37 : Whether job worker is required to register? Whether composition scheme is available to a job worker?
Answer: Job workers making taxable supplies above the threshold aggregate turnover need to register. Composition scheme is not available to job-workers. They, however, can avail benefit of section 143 of the CGST Act.
Question 38 : I am a service provider with turnover of Rs. 50 lakhs in one state only. Am I eligible for the composition scheme?
Answer: Service providers, except restaurants/caterers, are not eligible for composition scheme.
Question 39 : I am an ice cream manufacturer with sales in one state only. Can I avail the option of composition?
Answer: No. The following three classes of persons, namely
- Ice cream and other edible ice, whether or not containing cocoa.
- Pan masala
- All goods, i.e. Tobacco and manufactured tobacco substitutes are not eligible for benefit of composition scheme.
Question 40 : If I register under the composition scheme, can I opt out of it later? What happens to my stock if I do so?
Answer: Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switchover in terms of section 18(1)(c ) of CGST Act, 2017.
Question 41 : Can I register as a normal taxable person now and avail of the composition scheme later?
Answer: You can opt for composition scheme from the beginning of the next financial year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.
Question 42 : I have registered as a composition dealer. If my turnover crosses Rs. 75 lakhs, can I continue in the scheme for the remaining financial year?
Answer: No, taxpayer becomes ineligible for composition scheme on the day the turnover crosses Rs. 75 lakhs.
Question 43 : If I was registered earlier but am not required to register under GST, what to do about provisional ID and accumulated ITC?
Answer: Please apply for cancellation of registration under Section 29(1) of the CGST Act, 2017 read with Rule 24(4) of CGST Rules, 2017. You will be required to calculate and pay ITC availed on goods held in stock on the date of cancellation of registration.
Question 44 : I was registered under Central Excise or Service Tax, but could not migrate and therefore have taken a new registration. Will I be eligible for transitional credit?
Answer: In your new registration application, if you have referred to your past registration no. of Central Excise or Service Tax, you will be eligible for transitional credit under Section 140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017.
Question 45 : I have migrated and received provisional ID but not GSTIN, how do I supply goods or services or both?
Answer: Provisional ID (PID) will be your GSTIN. You can supply goods or services or both specifying PID as your GSTIN on Invoice.
Question 46 : I have not received ARN or have received ARN but not GSTIN, how do I supply goods or services or both?
Answer: You can supply goods or services or both on bill of supply without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon.
Question 47 : I am a supplier of exempted goods based out of Delhi and procure raw material from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for procurement of Inter-State goods. Is he right ?
Answer: No, if you are dealing in 100% exempted supplies you are not liable to be registered in GST. There is no requirement of registration for making inter-state purchases.
Question 48 : Is GST registration mandatory for small retailers to buy from dealers/wholesalers?
Answer: There is no such requirement under GST law.
This FAQ is only for educational and guidance purposes and do not hold any legal validity. For complete details (law, rules, notifications and other information) please refer to the CBEC website (www.cbec.gov.in)
In order to clear doubts which arises in the mind of public during registration process under GST, a list of frequently asked question is prepared which is as given below:
Question 1 : Does aggregate turnover include value of inward supplies received on which RCM is payable?
Answer: Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
Question 2 : What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
Answer: New registration would be required as partnership firm would have new PAN.
Question 3 : A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?
Answer: He is liable to register if the aggregate turnover (all India) is more than 20 lacs (Rs. 10 lacs in Special Category States) or if he is engaged in inter-State supplies.
Question 4 : Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued?
Answer: Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.
Question 5 : Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?
Answer: If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
Question 6 : Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
Answer: Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act.
Question 7 : Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?
Answer: A supplier of service will have to register at the location from where he is supplying services.
Question 8 : Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Answer: Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
Question 9 : If there are two SEZ units within same state, whether two registrations are required to be obtained?
Answer: SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.
Question 10 : Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?
Answer: Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
Question 11 : When is registration in other state required? Will giving service from Nasik to other state require registration in other state?
Answer: If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
Question 12 : I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure?
Answer: A separate & new registration is required for ISD.
Question 13 : I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated.
Answer: The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
Question 14 : I have ST number on individual name and have migrated to GST.I wish to transfer this on my proprietorship firm.
Answer: This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
Question 15 : Please tell if rental income up to 20 lacs attracts GST or attracts any other charge?
Answer: GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
Question 16 : If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs?
Answer: A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
Question 17 : Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover > 20/10 Lakh?
Answer: There is no liability of registration if the person is dealing with 100% exempt supplies.
Question 18 : If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration?
Answer: Yes, you would be treated as a normal taxable person.
Question 19 : Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?
Answer: Separate registration as tax deductor is required.
Question 20 : Is separate registration required for trading and manufacturing by same entity in one state?
Answer: There will be only one registration per State for all activities. But, you have the option to be registered as a separate business vertical.
Question 21 : I am registered in TN and getting the service from unregistered dealer of AP, should I take registration in AP to discharge GST under RCM?
Answer: Any person who makes make inter-state taxable supply is required to take registration. Therefore in this case AP dealer shall take registration and pay tax.
Question 22 : Is there any concept of area based exemption under GST?
Answer: There will be no area based exemptions in GST.
Question 23 : If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice?
Answer: Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to Delhi)
Question 24 : How long can I wait to register in GST ?
Answer: An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.
Question 25 : What If I am not liable to register under GST but I was registered under Service tax ?
Answer: You can apply for cancellation of Provisional ID on or before 31st July 2017.
Question 26 : When turnover of agents will be added to that of the principal for registration?
Answer: No.
Question 27 : If I am not an existing taxpayer and wish to newly register under GST, when can I do so?
Answer: You would be able to apply for new registration at the GST Portal gst.gov.in
Question 28 : If I buy raw material from supplier unregistered in GST, do I have to pay GST in RCM and can I avail ITC of the same?
Answer: Yes, you have to pay GST via RCM. You can avail ITC of the GST so paid if you are otherwise eligible.
Question 29 : Can an unregistered dealer supply goods to other States if his turnover is below Rs. 20 lakhs?
Answer: No. The supplier would be liable to obtain registration in case of inter-State supplies irrespective of his turnover.
Question 30 : Existing taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration?
Answer: The registration in other State would come under fresh registration.
Question 31 : Is registration necessary if only interstate supply of Nil rated goods is being made?
Answer: If exclusively making supplies of Nil rated supplies, registration is not compulsory. Kindly refer section 23 of CGST Act.
Question 32 : Whether franchisor company will have to take registration in each state where outlets are located?
Answer: No, a franchisor company need not take registration in a state where only its franchisee is located.
Question 33 : If I’m starting new business today, still need to get TIN and then apply for GST? Or can I directly register with GST?
Answer: You may directly take GST registration on www.gst.gov.in
Question 34 : A firm dealing exclusively in exempted products has GST registration; does it need to file return?
Answer: If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.
Question 35 : My all outward supplies are export services. In this case is it compulsory to register under GST?
Answer: Yes. Since, exports are zero rated, one needs to register for GST to claim refunds.
Question 36 : Can a person operating two different companies with different names but with same PAN get two GST registrations?
Answer: One PAN holder gets one registration in every state, but he has the option of getting different registrations for different business verticals.
Question 37 : Whether job worker is required to register? Whether composition scheme is available to a job worker?
Answer: Job workers making taxable supplies above the threshold aggregate turnover need to register. Composition scheme is not available to job-workers. They, however, can avail benefit of section 143 of the CGST Act.
Question 38 : I am a service provider with turnover of Rs. 50 lakhs in one state only. Am I eligible for the composition scheme?
Answer: Service providers, except restaurants/caterers, are not eligible for composition scheme.
Question 39 : I am an ice cream manufacturer with sales in one state only. Can I avail the option of composition?
Answer: No. The following three classes of persons, namely
- Ice cream and other edible ice, whether or not containing cocoa.
- Pan masala
- All goods, i.e. Tobacco and manufactured tobacco substitutes are not eligible for benefit of composition scheme.
Question 40 : If I register under the composition scheme, can I opt out of it later? What happens to my stock if I do so?
Answer: Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switchover in terms of section 18(1)(c ) of CGST Act, 2017.
Question 41 : Can I register as a normal taxable person now and avail of the composition scheme later?
Answer: You can opt for composition scheme from the beginning of the next financial year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.
Question 42 : I have registered as a composition dealer. If my turnover crosses Rs. 75 lakhs, can I continue in the scheme for the remaining financial year?
Answer: No, taxpayer becomes ineligible for composition scheme on the day the turnover crosses Rs. 75 lakhs.
Question 43 : If I was registered earlier but am not required to register under GST, what to do about provisional ID and accumulated ITC?
Answer: Please apply for cancellation of registration under Section 29(1) of the CGST Act, 2017 read with Rule 24(4) of CGST Rules, 2017. You will be required to calculate and pay ITC availed on goods held in stock on the date of cancellation of registration.
Question 44 : I was registered under Central Excise or Service Tax, but could not migrate and therefore have taken a new registration. Will I be eligible for transitional credit?
Answer: In your new registration application, if you have referred to your past registration no. of Central Excise or Service Tax, you will be eligible for transitional credit under Section 140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017.
Question 45 : I have migrated and received provisional ID but not GSTIN, how do I supply goods or services or both?
Answer: Provisional ID (PID) will be your GSTIN. You can supply goods or services or both specifying PID as your GSTIN on Invoice.
Question 46 : I have not received ARN or have received ARN but not GSTIN, how do I supply goods or services or both?
Answer: You can supply goods or services or both on bill of supply without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon.
Question 47 : I am a supplier of exempted goods based out of Delhi and procure raw material from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for procurement of Inter-State goods. Is he right ?
Answer: No, if you are dealing in 100% exempted supplies you are not liable to be registered in GST. There is no requirement of registration for making inter-state purchases.
Question 48 : Is GST registration mandatory for small retailers to buy from dealers/wholesalers?
Answer: There is no such requirement under GST law.
This FAQ is only for educational and guidance purposes and do not hold any legal validity. For complete details (law, rules, notifications and other information) please refer to the CBEC website (www.cbec.gov.in)
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