Podcast
Questions and Answers
What is GST registration?
What is GST registration?
GST registration is the process by which businesses whose turnover exceeds the threshold limit must register as a normal taxable person under Goods And Services Tax.
Which of the following documents are required for GST registration? (Select all that apply)
Which of the following documents are required for GST registration? (Select all that apply)
What penalty is imposed for not paying tax or making short payments?
What penalty is imposed for not paying tax or making short payments?
A penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000.
What is a tax invoice under GST?
What is a tax invoice under GST?
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Only businesses with a turnover above Rs. 40 lakhs need to register under GST.
Only businesses with a turnover above Rs. 40 lakhs need to register under GST.
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A tax invoice must only be issued by the supplier of goods.
A tax invoice must only be issued by the supplier of goods.
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The minimum penalty for not registering under GST is Rs. ______.
The minimum penalty for not registering under GST is Rs. ______.
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What must be done to register for GST online?
What must be done to register for GST online?
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What is GST registration?
What is GST registration?
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Who is required to register for GST?
Who is required to register for GST?
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The penalty for not registering under GST can be up to _____ of the tax amount due.
The penalty for not registering under GST can be up to _____ of the tax amount due.
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What documents are required for GST registration?
What documents are required for GST registration?
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GST registration is not mandatory for all businesses.
GST registration is not mandatory for all businesses.
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How long does GST registration usually take?
How long does GST registration usually take?
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What is the purpose of an invoice under GST?
What is the purpose of an invoice under GST?
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E-commerce aggregators do not need to register for GST.
E-commerce aggregators do not need to register for GST.
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Which section of the CGST Act mandates the issuance of a tax invoice?
Which section of the CGST Act mandates the issuance of a tax invoice?
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Study Notes
GST Registration Overview
- GST registration is mandatory for businesses exceeding a turnover of Rs. 40 lakh (Rs. 20 lakh for certain states) as normal taxable persons.
- Operating a business without GST registration results in severe penalties.
- The registration process typically takes 2-6 working days.
Special Cases for Registration
- Kerala has the authority to impose a ‘calamity cess’ up to 1% for intra-state goods and services to address past natural calamities.
- Individuals previously registered under Pre-GST laws (Excise, VAT, Service Tax) must register under GST.
- Casual and Non-Resident taxable persons are required to register.
- Agents of suppliers, Input Service Distributors, and those paying taxes via reverse charge mechanism also need registration.
- E-commerce participants, including aggregators and suppliers providing cross-border services to unregistered persons, must register.
Required Documents for GST Registration
- PAN (Permanent Account Number) of the applicant is essential.
- Aadhaar card serves as identity proof.
- Business registration proof or incorporation certificate is needed.
- Identity and address proofs of promoters/directors with photographs must be submitted.
- Address proof for the business location is required.
- Bank account statements or canceled cheques may be necessary.
- A digital signature is needed for online registration.
- A letter of authorization or board resolution is required for the authorized signatory.
Penalties for Non-Compliance
- A penalty of 10% of the unpaid tax amount is applied for short payments, with a minimum of Rs. 10,000.
- In cases of deliberate tax evasion, the penalty can escalate to 100% of the due tax amount.
Steps for Online GST Registration
- Fill out Part B, which includes 10 sections, and submit relevant documents.
- Aadhaar authentication is a recent addition, while bank account details are non-mandatory since December 2018.
- After filling details, go to the verification page and submit the application.
- Companies must use a Digital Signature Certificate; others can submit through e-Sign or Electronic Verification Code.
- Upon successful submission, an Application Reference Number (ARN) will be sent to the registered email and mobile.
Understanding Tax Invoices
- A tax invoice is a commercial document that identifies the seller and buyer, listing supplied items, shipment dates, transport methods, and payment terms.
- Under GST, an invoice is mandated for all goods and services supplied as per Section 31 of the CGST Act, 2017.
- Registered persons purchasing from unregistered suppliers must issue a payment voucher and a tax invoice.
- The type of invoice depends on the registered person's activities: tax invoices for standard supplies and bills of supply for exempted supplies or composition scheme dealers.
- An invoice must include detailed descriptions, quantities, values, and other specified information.
GST Registration Overview
- GST registration is mandatory for businesses exceeding a turnover of Rs. 40 lakh (Rs. 20 lakh for certain states) as normal taxable persons.
- Operating a business without GST registration results in severe penalties.
- The registration process typically takes 2-6 working days.
Special Cases for Registration
- Kerala has the authority to impose a ‘calamity cess’ up to 1% for intra-state goods and services to address past natural calamities.
- Individuals previously registered under Pre-GST laws (Excise, VAT, Service Tax) must register under GST.
- Casual and Non-Resident taxable persons are required to register.
- Agents of suppliers, Input Service Distributors, and those paying taxes via reverse charge mechanism also need registration.
- E-commerce participants, including aggregators and suppliers providing cross-border services to unregistered persons, must register.
Required Documents for GST Registration
- PAN (Permanent Account Number) of the applicant is essential.
- Aadhaar card serves as identity proof.
- Business registration proof or incorporation certificate is needed.
- Identity and address proofs of promoters/directors with photographs must be submitted.
- Address proof for the business location is required.
- Bank account statements or canceled cheques may be necessary.
- A digital signature is needed for online registration.
- A letter of authorization or board resolution is required for the authorized signatory.
Penalties for Non-Compliance
- A penalty of 10% of the unpaid tax amount is applied for short payments, with a minimum of Rs. 10,000.
- In cases of deliberate tax evasion, the penalty can escalate to 100% of the due tax amount.
Steps for Online GST Registration
- Fill out Part B, which includes 10 sections, and submit relevant documents.
- Aadhaar authentication is a recent addition, while bank account details are non-mandatory since December 2018.
- After filling details, go to the verification page and submit the application.
- Companies must use a Digital Signature Certificate; others can submit through e-Sign or Electronic Verification Code.
- Upon successful submission, an Application Reference Number (ARN) will be sent to the registered email and mobile.
Understanding Tax Invoices
- A tax invoice is a commercial document that identifies the seller and buyer, listing supplied items, shipment dates, transport methods, and payment terms.
- Under GST, an invoice is mandated for all goods and services supplied as per Section 31 of the CGST Act, 2017.
- Registered persons purchasing from unregistered suppliers must issue a payment voucher and a tax invoice.
- The type of invoice depends on the registered person's activities: tax invoices for standard supplies and bills of supply for exempted supplies or composition scheme dealers.
- An invoice must include detailed descriptions, quantities, values, and other specified information.
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Description
This quiz covers key concepts under Unit 3 of the Goods and Services Tax (GST), focusing on GST registration procedures. Designed for students and professionals alike, it aims to enhance understanding of compliance requirements for taxable businesses in India. Test your knowledge on important thresholds, mandatory registrations, and more.
