GST and GST Registration
The Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. It has replaced other indirect taxes such as the service tax, Value Added Tax (VAT), central sales tax, excise duty, additional customs duty and so on. To introduce GST as a comprehensive and destination-based indirect tax, The Government passed the Goods & Services Act on 29th March 2017. This Act came into effect from 1st July 2017 and, since then; it has been a big driving force of tax reforms in India. Over the last 2 and a half years, quite a few important changes have been made in the GST rules, keeping in mind the business dynamics in the country.
As per provisions of the Act, businesses exceeding an annual turnover of Rs 40 lakhs were needed to register themselves as a taxable entity. For Arunachal Pradesh and other North-eastern states, this limit of threshold turnover was kept at Rs 10 lakhs. But, as decided in the 32nd GST Council Meeting dated 10th January 2019, states were given options to either opt for new limits or to continue with the previous limits. Arunachal opted to raise this limit to Rs 20 lakhs for sale of goods, which came into effect from 1st April 2019 onwards. There was no change in the threshold limits for service providers doing GST in Arunachal Pradesh.
GST registration is mandatory for certain types of businesses. As per the Arunachal Pradesh GST Act, penalties are applicable if a business operates without having a GST registration.
What are the benefits of GST registration?
Registration under the GST regime can bring the below-mentioned benefits to the Government and the businesses-
- A GST registration makes a business legally recognized as a supplier of services or goods
- Since the GST has removed the cascading effect of taxes and eliminated the ‘tax on tax’, the cost of production has decreased.
- GST in Arunachal Pradesh increases the revenue generation prospects for the Government
- GST helps a business to consolidate its warehousing facilities and to reduce the logistics costs.
- Because of the simplified return filing system in the GST regime, MSMEs are less dependent now on tax professionals as compared to the earlier tax regime.
- GST registration makes a business legally authorized to collect tax from its purchasers or recipients and to pass on the credit against the taxes paid to them.
- Small businesses can utilize the composition scheme provided by the GST regime to lower taxes. Thereby, they can reduce their taxation and compliance burden significantly.
Who should register for GST? (Checklist)
The following entities should mandatorily register for GST in Arunachal Pradesh
- Individuals/businesses registered under tax services (VAT, Excise, Service Tax, etc.) before GST came into effect
- Non-Resident taxable person/Casual taxable person
- Businesses with annual turnover above the threshold limit of Rs. 20 Lakhs
- Agents of a supplier & Input service distributor
- All e-commerce aggregators
- Individuals who pay tax as per the reverse charge mechanism
- A person/business that supplies through an e-commerce aggregator
- A person/business that supplies online information, database access and/or retrieval services from outside the country to a person/business in India (other than a registered taxable entity)
How to do GST registration in Arunachal Pradesh
The process of GST registration is very simple, and if you have complete documents with you, the process will be hassle-free. Register with Vakilsearch in 3 simple steps –
- We help you get a secure GST identification number
- We make it easy for you to get your GST from the comfort of your own home
- We will file your returns and complete all other compliances as and when required
You can also register for GST in the following ways
- Go to the online portal (govt)
- Go to “Services” and then click “Registration”
- Click “New Registration”.
- On the next page, submit the following details-
- Select your type as “Taxpayer” from the ‘I am a’ drop-down menu
- Select ‘Arunachal Pradesh’ in the ‘State/UT’ drop-down menu
- Select your district from the ‘District’ drop-down menu
- Enter the name of your business, as appears on your PAN card
- Enter your PAN number
- Enter your E-mail ID and valid mobile number. OTPs will be sent to them.
- Click “Proceed”
- On the resultant page, enter the OTPs received in the space provided and click “Proceed”
- A system-generated Temporary Reference Number (TRN) will appear on your screen. Note it for future reference.
- Now, visit the GST site homepage again Go to Services>Registration> New Registration and enter the following details-
- Select the button named ‘Temporary Reference Number (TRN)’
- Enter the TRN and the CAPTCHA image in the space provided
- Click “Proceed”. You will receive OTPs on your E-mail ID and valid mobile number
- Enter the OTPs on the resultant page and click “Proceed”.
- The resultant page will show the status of your application. Click the “Edit” icon on the right side
- On the next page, you will see 10 sections. Enter all the required details and upload scanned copies of the relevant documents ( refer to the next section to know more about the documents required)
- Next, visit the “verification” page and check the declaration box.
- Submit your application by any of the following methods-
- By e-Sign methods- With an OTP received on the mobile number linked to your Aadhaar card
- By EVC- With an Electronic Verification Code received on your registered mobile number
- If you are registering as a company, you must apply for a Digital Signature Certificate (DSC).
- After the application is submitted, a message confirming successful submission will appear on the screen. An Application Reference Number (ARN) will be sent to your Email ID and the registered mobile number. With this ARN, you can check the status of your application on the GST portal.
You will receive your permanent GST number after 7 working days, subject to the submission of proper documents. This number (called the GSTIN or GST Identification Number) will appear on all the invoices submitted or received by you.
To know where a business entity or taxpayer is from, every state in India has been given a State Code, which is a fixed two-digit number. These codes are small so that there is less chance of mistakes in filing GST Returns and in processing GST invoices. The first 2 digits of a GSTIN signify the GST State Code.
The Arunachal Pradesh GST Code is 12, as per the GST State Code List. For example, in GSTIN 12AAEPM0122C1Z8, the first 2 digits (12) denote the Arunachal Pradesh GST Code and specify that the business is located in Arunachal Pradesh.
The Arunachal Pradesh GST Number can be obtained from the GSTIN of the buyer, mentioned in the “Place of Supply” section of a GST invoice. The Arunachal Pradesh GST Number helps the Government to assess whether to charge IGST, SGST or CGST on a taxpayer or a business entity. If the State Code for both the buyer and the supplier is different, IGST will be charged. If these two State codes are the same, SGST, and CGST will be charged.
What are the documents required for GST registration in Arunachal Pradesh?
The following documents are required to be submitted for GST registration in Arunachal Pradesh
- PAN card in the name of each of the directors in the company
- Aadhaar card or any identity proof for each of the directors
- Address proof for each of the directors ( should not be more than 2 months old)
- Proof of constitution of business ( anyone from partnership deed, Memorandum of Association (MOA), certificate of incorporation, registration certificate, Articles of Association (AOA), Society by-laws and so on)
- Proof of business address (anyone from rent/lease agreement, electricity bill, owner NOC and so on)
- Bank details ( First page of bank passbook, a canceled cheque of the bank account showing the name of the account holder, bank statement)
- Authorization details (anyone from letter of authorization, copy of the resolution passed by the managing committee/BoD specifying the authorized signatory
Frequently Asked Questions
If a person who supplies goods and/or services in an area where GST is applicable but he/she does not own a fixed place of business, such a person will be termed as a casual taxable person under GST Rules.
For example: Let us suppose a person owns a place of business in Bikaner, Rajasthan and supplies investment consulting services to Itanagar where he does not have a place of business. In such a case, he would be treated as a casual taxable person in Itanagar.
There are 3 components of GST. These are-
- SGST (State GST)
- CGST (central GST)
- IGST (Integrated GST)
No, you are not allowed to collect any GST from your customers if you are not registered with GST. Also, you can’t claim any ITC ( Income Tax Credit) against GST paid by your customers.
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