Goods and Services Tax, commonly referred to as GST, is a comprehensive tax system that has revolutionized the Indian taxation system. It is a destination-based tax system that has replaced multiple indirect taxes in India. Every person, who is a supplier of goods or services or both, must register under GST. The registration process is mostly the same for all types of taxable persons, but there are some special provisions for casual taxable persons and non-resident taxable persons.
A taxable person under GST is any person who supplies goods or services or both, and whose aggregate turnover in a financial year exceeds the threshold limit of INR 20 lakhs (INR 10 lakhs for special category states). The threshold limit for registration is INR 40 lakhs for suppliers of goods only. Registration under GST is mandatory for such persons, and they must obtain a GST registration certificate.
A casual taxable person is a person who occasionally undertakes transactions involving the supply of goods or services or both in the course of business, whether as principal, agent, or in any other capacity, in a taxable territory where he has no fixed place of business. Some examples of casual taxable persons are event organizers, exhibition organizers, and traders participating in exhibitions or trade fairs.
Casual taxable persons are not required to obtain a permanent registration under GST. They can obtain a temporary registration, which is valid for a period of 90 days. However, they may apply for an extension of the temporary registration for a further period of 90 days.
A casual taxable person must apply for a temporary registration at least 5 days before the commencement of business. They must also deposit an amount equivalent to the estimated tax liability for the period for which the registration is sought. Once the business is over, they must file a final return within 7 days of the expiry of the registration period.
A non-resident taxable person is a person who occasionally undertakes transactions involving the supply of goods or services or both in the course of business, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India. Some examples of non-resident taxable persons are foreign companies selling goods or services in India, and foreign artists or performers performing in India.
Non-resident taxable persons are required to obtain a temporary registration under GST. The application for registration must be made at least 5 days before the commencement of business. They must also deposit an amount equivalent to the estimated tax liability for the period for which the registration is sought. The validity of the temporary registration is for a period of 90 days, but it can be extended for a further period of 90 days.
Non-resident taxable persons must appoint an authorized signatory who is a resident of India and who will be responsible for complying with the provisions of GST. They must also file returns for the period for which the registration is valid within 20 days after the end of the registration period.
GST has brought about a significant change in the Indian taxation system. Every taxable person in India must register under GST and comply with its provisions. Casual taxable persons and non-resident taxable persons have special provisions for registration under GST, which they must comply with.
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Cullet - GST Rates and HSN Code 7001
