Ans. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
• Legally recognized as supplier of goods or services.
• Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services. Mandatory force of Accounting will help businesses in managing credit.
• Legally authorized to collect tax from his purchasers and pass on the credit of taxes paid on goods or services supplied to purchasers or recipients irrespective of movement to any state. This was earlier missing
No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.
The effective date of registration has 2 scenarios:-n
- If registration application submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration. For ex:- If someone reached 20 lacs turnover as on 23rd March then he is liable to take registration by 22nd April (within 30 days). So in this case his liability date was 22nd April & this will be date of registration.
n 2. Where an application for registration has been submitted by the applicant after thirty days, i.e. after 22nd April, then the effective date of registration shall be the date of grant of registration.n
In case of suo moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration. SHOULD ONE GO FOR THE SAME OR NOT?
Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed in a year is liable to get himself registered. However, certain categories of persons mentioned in Schedule III of Model GST Law (MGL) are liable to be registered irrespective of this threshold.
The taxable event under GST shall be the supply
of goods and / or services 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
nevent known as ‘supply’.nn