GST UPDATES

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*About GST Rate*

The combined GST rate is being discussed by government. The rate is expected around 18% to 22%. After the *Total GST Rate* is arrived at, the States and the Centre will decide on the *CGST* and *SGST* rates.

*GST Rates on Goods & Services* – _*to be based on Revenue Neutral Rate (RNR)*_ – There will be *Four rates*:
-Merit rate for essential goods and services,
-Standard rate for goods and services in general,
-Special rate for precious metals, &
-NIL rate

*Current Rate of GST in some other countries are * 
-Australia-10%,
-France-19.60%,
-Canada-5%,
-Germany-19%,
-Japan-8%,
-Singapore-7%,
-Sweden-25%,
-New Zealand-15% &
-Pakistan-17%

*LIABILITY TO BE REGISTERED under GST*
_(Schedule III)_
1. Every supplier shall be liable to be registered under GST Act *in the State from where he makes a taxable supply of goods and/or services* if his aggregate turnover in a
financial year exceeds *[Rs. 9 (Nine) lakh]*

- [The threshold limit of *Rs. 4 (four) lakh* will apply only if the taxable person conducts his business in any of the North East States including Sikkim.]

- *North Eastern State* includes *Seven Sister States* (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura), *and the Himalayan state of Sikkim.*

-The supplier shall not be liable to registration if his aggregate turnover
consists of only goods and/or services which are not liable to tax under this Act.

2. Every person who is already registered or holds a license under an *earlier law (like Excise Law, VAT Law, CST Law etc),* shall be liable to be registered under this Act with effect from the appointed day.

3. The following categories of persons shall be *compulsorily required to be registered under GST Act:* _(Limit of Rs.9 lakh /4 lakh is not available to following)_
(i) persons making any inter-State taxable supply,
(ii) casual taxable persons,
(iii) persons who are required to pay tax under reverse charge,
(iv) non-resident taxable persons,
(v) persons who are required to deduct tax under section 37;
(vi) persons who supply goods and/or services on behalf of other registered
taxable persons whether as an agent or otherwise,
(vii) input service distributor;
(viii) persons who supply goods and/or services, other than branded services, through electronic commerce operator,
(ix) every electronic commerce operator,
(x) an aggregator who supplies services under his brand name or his trade name,
irrespective of the threshold limit of 9 lakh/4 lakh and
(xi) such other person or class of persons as may be notified by the Central
Government or a State Government on the recommendations of the Council.

*Time limit for registration is : within 30 days from the date of liable to get register arises*

*Some Important Points regarding GST Registration*

(1) Every person who is liable to be registered under Schedule III of this Act shall
apply for registration in *every such State in which he is so liable* _within thirty days_ from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:

(2) A person having *multiple business verticals in a State* may obtain a separate registration for *each business vertical,* subject to such conditions as may be prescribed.

(3) A person, may also get himself registered *voluntarily*.

(4) Every person shall have a *Permanent Account Number (PAN)*
in order to be eligible for grant of registration.

(5) A *non-resident taxable person* may be granted registration on the basis of any other document as may be prescribed.

(6) The registration or the *Unique Identity Number*, shall be granted or, as the case
may be, rejected after due verification in the manner and within such period as may be
prescribed.

(7) The proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a *reasonable opportunity* of being heard.

(8) A certificate of registration shall be issued in the prescribed form, with effective date as may be prescribed.

(9) A registration or an Unique Identity Number shall be deemed to have been granted after the period, if no deficiency has been communicated to the applicant by the proper officer within that period.

(10) Any rejection of application
for registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a rejection of application for registration under the SGST Act / CGST Act.

(11) The grant of registration or the Unique Identity Number under the CGST Act / SGST
Act shall be deemed to be a grant of registration or the Unique Identity Number under
the SGST/CGST Act.

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Written By: SOURAV BAGARIA