To supply goods and products in India, GST registration is mandatory. This ensures proper taxation and offers various benefits. The registration process involves several steps:
- Determine if GST registration is mandatory or optional for your situation.
- Gather and prepare the required documentation accurately.
- Have the documentation reviewed by a specialist to avoid rejection.
- Upload the documents to the GSTN website along with the GSTN application form.
- Wait for the review and acceptance of the GST registration, which typically takes just a few days. Once approved, the registration certificate will be issued accordingly.
Documents Required for GST Registration:
- Proof of Business
- Passport size photo
- Partnership deed or business registration certificate
- Bank statement
- Authorization form
- Address proof documents
- Proof of property ownership
- Rent agreement (if rented)
- No Objection Certificate (NOC)
GST Registration Process:
- Arrange all required documents as per the checklist.
- File the application and await a response, which usually takes at least 3 days.
- Upon approval, the GST registration certificate will be granted, and thereafter, quarterly or monthly returns must be filed.
This registration process is straightforward and is handled by an expert team.
GST Consulting and Training
Expertise with the Potential to Deliver Maximum Benefits
While the implementation of GST has been completed and operations are smooth, the GST law continues to evolve. Numerous changes, notifications, circulars, and press releases occur regularly, indicating ongoing fine-tuning by legislators. In this dynamic environment, corporates require consistent feedback and daily guidance on GST matters.
Importance of GST Consulting: In these dynamic times, where the law is still evolving, corporates and multinational companies need to stay connected with expert teams for consulting, legal opinions, and day-to-day guidance. They may require certifications from Chartered Accountants for complex aspects like Anti-Profiteering.
GST Consulting Services: APMH specializes in indirect tax consulting in India, with a dedicated team for VAT and Service Tax consulting. We have been studying the GST law for over a year before its implementation, developing expertise in various areas such as:
- Corporate GST advisory on legislative, administrative, and enforcement issues.
- Providing legal opinions on critical matters like “Location of supply,” “Time of supply,” and “Registration provision.”
- Classification and interpretation of GST HSN codes.
- Assistance with GST advance rulings.
- Providing ongoing support through a dedicated helpdesk.
Our specialized team is equipped to provide comprehensive GST consulting services to ensure that corporates navigate the complexities of GST law effectively and maximize their benefits.
GST Refund
GST Refund under Different Situations and Applicable Rules and Process
Under the GST regime, taxpayers can claim refunds under various circumstances, subject to specific conditions and procedures outlined by the authorities. Here’s an overview of situations where GST refunds can be claimed:
Export of Goods or Services (Including Deemed Export): Taxpayers exporting goods or services, including deemed exports, are eligible to claim refunds of GST paid on inputs or input services used in the manufacturing or provision of exported goods or services.
Refund of Unutilized Input Tax Credit: Taxpayers can claim refunds of any unutilized input tax credit at the end of any tax period, provided certain conditions are met as specified by the authorities.
Refund from Manufacturing/Generation/Production – Tax-Free Supplies: Taxpayers engaged in manufacturing, generation, or production of tax-free supplies may claim refunds of GST paid on inputs used in such activities.
Excess Payment Due to Mistake and Inadvertence: Refunds can be claimed in cases where taxpayers have made excess payments of GST due to errors or inadvertent mistakes.
Finalization of Provisional Assessment: Upon finalization of provisional assessment, taxpayers can claim refunds of any excess tax paid during the provisional assessment period.
Refund for Tax Payment on Transactions by UN Bodies, CSD Canteens, Para-Military Forces Canteens, etc.: Taxpayers involved in transactions with UN bodies, CSD canteens, para-military forces canteens, etc., may claim refunds of GST paid on such transactions.
Refund of Pre-deposit in Case of Appeal: Taxpayers who have made pre-deposits while filing appeals can claim refunds of the pre-deposited amount if the appeal is decided in their favor.
The process for claiming GST refunds involves submitting an application to the proper officer of IGST/CGST/SCGST before the expiry of two years from the relevant date. However, the limitation of two years does not apply if the tax, interest, or other amounts have been paid under protest. The application must be submitted in the prescribed form and manner as specified by the authorities.
It’s essential for taxpayers to adhere to the prescribed procedures and conditions to ensure timely and accurate processing of GST refund claims.
GST Return
Every registered taxable individual is mandated to receive electronic returns of inward and outward supplies of goods and/or services, accessible input tax credit, tax payable, tax payment, and other specified information in a specified manner within 20 days after the end of each month.
A return submitted by a registered taxable person without the full payment of tax due as per the return will not be considered valid for allowing input tax credit for supplies made by such person.
India follows a dual GST structure comprising CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax). In intra-state transactions, both CGST and SGST are levied, whereas in inter-state transactions, IGST is levied.
Under this dual GST system, the Central Government administers and collects CGST and IGST, while the respective State Governments administer and collect SGST.
This system of dual GST ensures compliance with the constitutional norm of fiscal federalism, where both the Centre and the States have the authority to levy and collect taxes through appropriate legislation.
The Central GST (CGST) is levied by the Centre on intra-state supplies of goods and/or services, while the State GST (SGST) is levied by the States. The Integrated GST (IGST) is collected and distributed by the Centre for inter-state supplies of goods and/or services.
GST Compliances
The introduction of GST has brought about improvements in the complexities of indirect tax policy. Companies that previously had separate consolidated registrations under the service tax regime are now required to have multiple registrations under GST. While GST is a single levy, it necessitates registration in every state where a company has a permanent establishment in some capacity. Due to India’s territorial system of taxation, each state receives a share of the tax under GST.
Enforcement of Goods and Services Tax (GST) is essential to ensure compliance. Annual state registration entails numerous returns, with three filings required each month for each registration. Additionally, there is a need for cross-matching of credits and adjustment of returns on a monthly basis. The expertise required for such enforcement, particularly for organizations operating across multiple states, is significantly higher than what was necessary under the previous tax regime.
Rajput Jain & Associates has developed expertise in managing the entire lifecycle of indirect tax compliance. This includes data collection from ERP systems, monitoring data from a GST perspective, identifying discrepancies, filing returns, and integrating updates into the ERP system. The firm’s GST enforcement department also handles daily GST refund applications for export-oriented companies and follows up on appeals. Clients receive ongoing consultation on GST matters, and the RJA team ensures smooth knowledge transfer to ensure consistent GST compliance for corporates.
GST Audit
Audit under GST involves a thorough examination of the accounts, receipts, and other documentation of a taxable individual to ensure compliance with GST regulations. Here are the key points regarding GST audit:
Objective: The aim of GST audit is to verify the accuracy of reported turnover, taxes charged, rebates received, and input tax credit utilized, and to ensure compliance with GST requirements.
Threshold for Audit: Taxable individuals whose turnover exceeds the specified limit (currently Rs. 1 crore) during the financial year are required to undergo GST audit by a Chartered Accountant (CA) or Cost Accountant. They must file an annual return using Form GSTR-9B and submit audited financial statements by 31st December of the following financial year.
Rectifications after Return: If discrepancies are identified during the audit, taxable individuals can rectify errors in their returns subject to payment of interest. However, adjustments are not permitted after the deadline for filing the return for the relevant period.
Audit by Tax Authorities: The Commissioner of Central Goods and Services Tax (CGST) or State Goods and Services Tax (SGST), or any appointed officer, may conduct an audit of the taxpayer. A notice must be issued at least 15 days in advance, and the audit report must be completed within 3 months.
Responsibilities of the Auditor: The taxable individual must provide necessary facilities and assistance for the audit, including validation of books of accounts and other records.
Findings of Audit: Upon completion of the audit, the officer notifies the taxable individual of the observations within 30 days. If no discrepancies are found, the appeal and restitution process is initiated.
Special Audit: A special audit may be initiated by the Assistant Commissioner, with the approval of the Commissioner, if there are complexities in the case or revenue interests are at stake. It can be conducted even if the taxpayer’s books have been audited before.
Time Limit for Special Audit: The auditor is required to submit the report within 90 days, which can be extended for another 90 days upon request.
Cost: The costs of the investigation and report, along with the remuneration of the auditor, are determined and charged by the Commissioner.
Findings of Special Audit: The taxable person is given an opportunity to respond to the findings. If discrepancies are detected, demand and recovery actions are initiated.
In summary, GST audit is a crucial process to ensure compliance with GST regulations and to maintain the integrity of the tax system.