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Who needs to be GST compliant?

Jul 052017

Who needs to be GST compliant?

The following type of businesses need to register:

Any business crossing over the threshold limit
Existing businesses registered with the central (Excise / Service Tax) or state (VAT) authorities
Taxable person carrying on an interstate supply
Businesses liable under reverse charge in GST ambit
Businesses wanting to collect GST or claim input (despite being below threshold) can take voluntary registration
How to become compliant?

Registration process for a new seller
A seller has to fill in registration application in less than 30 days of crossing the prescribed threshold/ starting of a business. Here, the date of application would be considered the effective date of registration for obtaining Input Tax Credit (ITC).

Registration Process for existing sellers
All sellers registered with central or state tax authorities would be migrated to GST by default and allotted Goods and Service Tax Identification Number (GSTIN). Sellers falling below the threshold may continue to be registered and get benefits of GST credit chain or opt out themselves.

GSTIN:

It is a 15 digit PAN based number with state code & business vertical details as shown below:

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State Code: To be based on India census 2011. Ex: 27 for Maharashtra and 29 for Karnataka
Entity Code: Alphanumeric 1 to 9 and A to Z based on number of business verticals in a state for the same PAN (i.e 9 digits plus 26 characters, a total of 35 business verticals per state is possible)

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