If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.
Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.
It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off.
India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources. A dual GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism.
The CGST and SGST would be levied at rates to be jointly decided by the Centre and States. The rates would be notified on the recommendations of the GST Council.
HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods and SAC ( Service Accounting Code ) shall be used for classifying the goods under the GST regime.
Securities have been specifically excluded from the 21 definition of goods as well as services. Thus, the transaction in securities shall not be liable to GST.
It means the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply.
The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to prescribed limit. The objective of composition scheme is to bring simplicity, ease compliance burden and reduce cost of compliance for the small taxpayers. The scheme is optional. It essentially provides for a turnover tax regime for such tax payers, with facility for filing of return on quarterly basis (instead of monthly return by the normal tax payers). An eligible person opting to pay tax under the composition scheme shall, instead of paying tax on every invoice at the specified rate, pay tax at a prescribed percentage of his turnover every quarter.
No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take credit on his input.
Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
A person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as is prescribed under the Registration Rules
Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST/SGST Act respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.
Yes. In terms of Section 28, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars within a period of 15 common working days from the date of receipt of application for amendment.
Yes. Section 29 of the CGST Act, read with rule 20 of the CGST Rules provides that a taxpayer can apply for cancellation of registration in FORM GST REG-16 in the following circumstances:
The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as ‘supply’.
(i) Taxable and exempt supplies.
(ii) Inter-State and Intra-State supplies,
(iii) Composite and mixed supplies and
(iv) Zero rated supplies.
The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The CGST/SGST Act provides separate time of supply for goods and services.
Input tax credit means the credit of “input tax” in terms of section 2(63). Further, “Input tax” in terms of section 2(62) in relation to a registered person, means the Central tax, State tax, Integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes:
No, the amount available in the electronic credit ledger may be used for making any payment towards ‘output tax’. Further, the definition of output tax u/s 2(82) specifically excludes tax payable under reverse charge basis. Therefore, input tax credit cannot be used for payment of tax under reverse charge basis.
As per Section 2(47) of the CGST Act, 2017, “Exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section 11 of CGST Act, 2017, or under Section 6 of the IGST Act, and includes non-taxable supply.