Temporary GST Registration

Temporary GST Registration

Goods and Services Tax or GST has been implemented in India from 1st July, 2017. And casual taxable persons are also required to obtain GST registration and file GST returns. According to the GST Act, “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. A casual taxable person is mandatory required to obtain GST registration irrespective of annual aggregate sales turnover.

Casual taxable persons are required to obtain GST registration under a special category at least 5 days prior to the undertaking business. An application for a casual taxable person GST registration can be filed online. And along with identity proof, address proof and photographs of the promoters. Once, an application for casual taxable person GST registration is filed, a transaction number would be generated. Using the transaction number, GST deposit must be made by the taxpayer to obtain casual taxable person GST registration in India.

Advantages of Goods & Services Tax (GST)

Unified Platform :

With the implementation of GST in India, the indirect taxes would be streamlined and standardized. Under GST regime, businesses would no longer have to obtain multiple VAT registration in different States or obtain a separate VAT and Service Tax registration. A single GST registration would be sufficient across India for selling or purchasing goods or providing services.

Subsuming of Taxes :

subsumes various other taxes like Central Sales Tax, Additional Customs Duty, Purchase Tax, Luxury Tax, etc., Hence, under GST, many of the taxes in existence today would be subsumed and made into one tax. This would make tax collection and compliance easy for businesses across the country.

Ease of Doing Business :

Currently, many businesses such as restaurants, computer sales and services businesses have to comply with both VAT and Service Tax regulations. This creates a compliance burden on the business, as they have to calculate taxes for the transaction based on different rates for the different items. Under GST, the distinction between goods and services will be gone – making doing business easy.

Lower Taxes :

Currently in some states under the VAT regime, businesses are required to comply with VAT regulations once they cross an annual turnover of Rs.5 lakhs. Under GST regime, GST liability accrues only if an entity crosses an annual turnover of Rs.10 lakhs in northeast or hill states . Whereas for rest of India, the threshold is set at Rs.20 lakhs.

Larger Tax Base :

GST is expected to increase the tax base in India significantly. Hence, the overall tax liability for businesses is expected to reduce overtime. As more and more businesses become compliant. Further, GST will use the latest in technology, including data from Aadhaar database, PAN database, etc., to make GST registration and GST return filing process, as seamless as possible.

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