Common questions or doubts that one has about GST.

Q. What is GST?

Ans. Good and Service Tax is an indirect tax which is mainly a combination of VAT, Excise, Service tax.

Q. Who is liable to take a Registration under the GST Law? What is the exemption limit for registration in case of GST?

Ans. Every supplier whose aggregate turnover exceeds Rs.20 Lacs liable to get himself registered in a State from where he makes taxable supplies.

GST Law is liable to be registered irrespective of this exemption limit:

(a) non-resident taxable persons making taxable supply;

(b) an electronic commerce operator;

(c) persons who are required to deduct tax under section 51 (related to TDS);

(d) Every electronic commerce operator;

(e) persons who supply goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

(f) input service distributor;

(g) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person;

Q. How to calculate aggregate turnover of Rs.20 lacs?

Ans. Aggregate turnover means the aggregate value of all taxable supplies, exempt supplies, export of goods or services or both and inter-State supplies of persons having the same PAN, to be computed on all India basis. Aggregate turnover does not include the value of inward supplies on which tax is payable on the reverse charge basis.

Q. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?

Ans. Yes. Every person should have a Permanent Account Number. Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration. However, PAN is not mandatory for a non-resident taxable person for obtaining registration.

Q. Can a person without GST registration claim ITC and collect tax?
Ans. No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.

Q. Who is a Casual Taxable Person?

Ans. Casual Taxable Person means a person who occasionally undertakes transactions involving the 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.

Q. Who is a Non-resident Taxable Person?

Ans. Non-resident Taxable Person means any person who occasionally undertakes transactions involving the supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.