Unit 3: Basic Procedures in GST

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Questions and Answers

What is GST registration?

It is the process for businesses whose turnover exceeds Rs. 40 lakh or Rs. 20 lakh to register as a normal taxable person under GST.

GST registration usually takes between 2-6 working days.

True

Who should register for GST?

Businesses with turnover below the threshold limit

Casual taxable persons

Both A and C (correct)

Individuals registered under Pre-GST law

The threshold limit for GST registration in most states is Rs. ______.

40 lakh Signup and view all the answers

Which of the following is NOT a document required for GST registration?

Passport Signup and view all the answers

A penalty of 10% of the tax amount is applicable for genuine errors in GST payment.

True Signup and view all the answers

What should businesses do if they don't register under GST?

They may face heavy penalties as it is considered an offence. Signup and view all the answers

What is a Tax Invoice?

A document showing the details of goods sold Signup and view all the answers

An invoice serves as a demand for ______.

payment Signup and view all the answers

What is GST Registration?

GST registration is the process whereby businesses whose turnover exceeds the threshold limit must register as a normal taxable person under Goods And Services Tax. Signup and view all the answers

For whom is GST registration mandatory?

All of the above Signup and view all the answers

The threshold limit for GST registration for North-Eastern States is ______.

Rs.20 lakh Signup and view all the answers

What penalty does an offender face for not paying tax under GST?

An offender not paying tax has to pay a penalty of 10% of the tax amount due, subject to a minimum of Rs.10,000. Signup and view all the answers

Which document is NOT required for GST registration?

Employee Identification Number Signup and view all the answers

A digital signature is mandatory for GST registration.

False Signup and view all the answers

What is a tax invoice under GST?

A tax invoice under GST is a commercial instrument issued for every supply of goods or services that includes specific details mandated by the CGST Act. Signup and view all the answers

Study Notes

GST Registration

GST registration is mandatory for businesses with turnover exceeding Rs. 40 lakh (Rs. 20 lakh for specific regions).
Failure to register results in legal penalties and is considered an offence under GST.
Registration typically takes 2-6 working days.

Special Provisions

Kerala introduced a 'calamity cess' of up to 1% on intra-state goods and services to address natural calamities.

Who Should Register for GST?

Individuals previously registered under pre-GST laws like Excise, VAT, and Service Tax.
Businesses surpassing the prescribed turnover limits.
Casual taxable persons and non-resident taxable persons.
Agents of suppliers and input service distributors.
Entities subject to reverse charge mechanism.
E-commerce aggregators and those supplying online database services from outside India.

Documents Required for GST Registration

Permanent Account Number (PAN) of the applicant.
Aadhaar card for identity verification.
Proof of business registration or incorporation certificate.
Identity and address proof of promoters/directors, including photographs.
Bank account statement or cancelled cheque.
Digital signature for electronic submissions.
Letter of authorization or board resolution for the authorized signatory.

Penalties for Non-Compliance

Short payments due to genuine errors attract a penalty of 10% of the tax amount due, with a minimum fine of Rs. 10,000.
Intentional tax evasion incurs a penalty of 100% of the tax amount due.

Online GST Registration Process

Fill out Part B of the online registration form, which includes 10 sections.
Documentation may include photographs, proof of business location, and optional bank account details.
Verification and Aadhaar authentication can be selected during the process.
Application submission methods include Digital Signature Certificate for companies, e-Sign OTP to Aadhaar number, or Electronic Verification Code via mobile OTP.
Upon successful submission, an Application Reference Number (ARN) is sent via email and SMS.

Tax Invoice under GST

A tax invoice identifies trading parties and details the items sold, prices, and payment terms.
Under the CGST Act, an invoice or bill of supply is required for all supplies of goods or services.
Registered buyers from unregistered sellers must issue payment vouchers and tax invoices.
Registered persons providing exempted goods/services or utilizing the composition scheme need to issue a bill of supply instead of a tax invoice.
Tax invoices must contain necessary details, including description, quantity, and value of goods/services supplied.

GST Registration

GST registration is mandatory for businesses with turnover exceeding Rs. 40 lakh (Rs. 20 lakh for specific regions).
Failure to register results in legal penalties and is considered an offence under GST.
Registration typically takes 2-6 working days.

Special Provisions

Kerala introduced a 'calamity cess' of up to 1% on intra-state goods and services to address natural calamities.

Who Should Register for GST?

Individuals previously registered under pre-GST laws like Excise, VAT, and Service Tax.
Businesses surpassing the prescribed turnover limits.
Casual taxable persons and non-resident taxable persons.
Agents of suppliers and input service distributors.
Entities subject to reverse charge mechanism.
E-commerce aggregators and those supplying online database services from outside India.

Documents Required for GST Registration

Permanent Account Number (PAN) of the applicant.
Aadhaar card for identity verification.
Proof of business registration or incorporation certificate.
Identity and address proof of promoters/directors, including photographs.
Bank account statement or cancelled cheque.
Digital signature for electronic submissions.
Letter of authorization or board resolution for the authorized signatory.

Penalties for Non-Compliance

Short payments due to genuine errors attract a penalty of 10% of the tax amount due, with a minimum fine of Rs. 10,000.
Intentional tax evasion incurs a penalty of 100% of the tax amount due.

Online GST Registration Process

Fill out Part B of the online registration form, which includes 10 sections.
Documentation may include photographs, proof of business location, and optional bank account details.
Verification and Aadhaar authentication can be selected during the process.
Application submission methods include Digital Signature Certificate for companies, e-Sign OTP to Aadhaar number, or Electronic Verification Code via mobile OTP.
Upon successful submission, an Application Reference Number (ARN) is sent via email and SMS.

Tax Invoice under GST

A tax invoice identifies trading parties and details the items sold, prices, and payment terms.
Under the CGST Act, an invoice or bill of supply is required for all supplies of goods or services.
Registered buyers from unregistered sellers must issue payment vouchers and tax invoices.
Registered persons providing exempted goods/services or utilizing the composition scheme need to issue a bill of supply instead of a tax invoice.
Tax invoices must contain necessary details, including description, quantity, and value of goods/services supplied.

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Description

This quiz covers the fundamentals of GST registration as outlined in Unit 3. Learn about the threshold limits and the necessity for businesses to register under Goods and Services Tax. Test your knowledge to ensure a clear understanding of GST procedures.