Unit 3: Basic Procedures in GST

Study Notes

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.

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

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.

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.

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.

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 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.

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

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.

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.

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.

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.