5. Goods and Service tax (GST) Procedures

GST PROCEDURE
Dr.Bharath V
bharath.v@kristujayanti.com

Registration under GST
Registration under Goods and Service Tax (GST) regime will confer following
advantages to the business:
(i) He is legally recognized as supplier of goods or services or both.
(ii) He is legally authorized to collect taxes from his customers and pass on the credit of
the taxes paid on the goods or services supplied to the purchasers/recipients.
(iii) He can claim Input Tax Credit of taxes paid and can utilize the same for payment
of taxes due on supply of goods or services.
(iv) Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
(v) Registered person is eligible to apply for Government bids or contracts or
assignments.
(vi) Registered person under GST can easily gain trust from customers.
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Registration is mandatory if aggregate
turnover exceeds threshold limit.
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Advantages of voluntary registration
under GST
• Legally Recognized Business
• Input Tax Credit (ITC)
• Interstate Transactions Allowed
• Eligibility for Refunds
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PERSONS NOT LIABLE FOR REGISTRATION
(i) Sec 23(1)(a): Any person engaged exclusively in the business of supplying of goods or
services or both they are not liable to tax or wholly exempt from tax under CGST or IGST.
(ii) Sec 23(1)(b): An agriculturist, to the extent of supply of produce out of cultivation of land.
(iii) Sec. 23(2): The Government may, on the recommendation of the GST Council.
COMPULSORY REGISTRATION IN CERTAIN CASES
Sec. 24: the following categories of persons shall be required to be registered under GST:
i. Person making any inter-state taxable supply;
ii. Individual taxable persons making taxable supply;
iii. Person who are required to pay tax under reverse charge;
iv. Person who are required to pay tax under sec. 9(5) of CGST (i.e. Electronic Commerce
Operator);
v. Non-resident taxable person making taxable supply;

CANCELLATION OF REGISTRATION
• The following persons are allowed to cancel GST registration:
• 1) The registered person himself
• 2) By a GST officer
• 3) The legal heir of the registered person
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Cancellation by the registered person
taxpayer [Sec. 29(1)]
• Registered person under GST can himself/herself cancel their registration in
any one of the following cases:
• ● Business has been discontinued.
• ● The business has been sold or transferred to some other party. That other
party needs to register under GST.
• ● There is any change in the constitution of the business (like Partnership
firm now converted into Private Limited company and so on).
• ● Turnover is not more than Rs.20 lakh (Rs.10 lakh in the case of special
category States except J&K).
• ● As per Finance Act, 2020, Voluntary registration can be cancelled by
proper officer on own or on application by registered person or his legal heir.
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Cancellation by a GST officer
[Section 29(2)]
 If the registered person has violated any of GST provisions or laws.
W.e.f. 1st October 2022, A composition registered person has not furnished the
return for a financial year beyond 3 months from the due date of furnishing of the
said return as against the earlier provision which provided non-filing for 3
consecutive tax periods.
 A normal registered person (other than composition scheme) who is required to
file return: not furnished for a continuous period of 6 months in case of regular
taxpayers
 A voluntarily registered person who has not commenced any business in the six
months from the registration date.
 If the registration is obtained by fraud methods, the proper officer has the right
to cancel the registration with retrospective effect.
 If a registered person avails input tax credit in violation of the provisions of
section 16 of the Act or rules made thereunder
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TAX INVOICE
 Under the GST regime, a “tax invoice” means the tax invoice referred to in
Section 31 of the CGST Act, 2017.
 For example, if a registered person is making or receiving supplies (from
unregistered persons), then a tax invoice needs to be issued by such
registered person.
 However, if a registered person is dealing only in exempted supplies or is
availing the composition scheme (composition dealer), then such a
registered person needs to issue a bill of supply in lieu of tax invoice.
 An invoice or a bill of supply need not be issued if the value of the supply is
less than ` 200/-, subject to specified conditions provisos to sub section (3)
of Section 31 of the CGST Act, 2017.
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5. Goods and Service tax (GST) Procedures

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