Goods and Service Tax

Goods and Service Tax (GST) is a destination based tax on consumption of goods and services. It is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

Who has to get registered under GST Act?

Every supplier whose aggregate turnover exceeds Rs. 20 Lacs in a financial year is liable to get himself registered within 30 days, in a State from where he makes taxable supplies. Further, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business. We at Balakrishna and Co., Bangalore help the entities to obtain new registration, voluntary registrations, amendment of existing registrations, filing of monthly and annual returns, etc. Our team is well versed with GST matters. In case, you need these services, we would be glad to assist you. Please write to contact@balakrishnaandco.com. Secondly, based on our past experience, we have short listed the most commonly asked questions by the companies regarding GST Act. We are sure the following FAQs will answer most of your questions!

+ If a person is operating in different States, with the same PAN number, can he operate with a single Registration?

No. Every person will have to get registered separately for each of the State from where he makes taxable supply if he is liable for registration in terms of section 22(1) of the CGST Act.

+ Whether a person having multiple business verticals in a State or Union territory can obtain different registrations for each of such vertical?

Yes. As per proviso to Section 25(2) of the CGST Act, a person having multiple business verticals in a State or Union territory, may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.

+ Whether transfer of goods to another branch located outside the State is taxable?

In terms of Section 25(4) of the CGST Act, 2017, every person who is required to obtain separate registration for every branch located in different state or union territory shall be treated as distinct persons. Accordingly, the supply of goods (stock transfers) to a branch located outside the State would qualify as supply, liable to tax in terms of clause 2 to Schedule I of the CGST Act, 2017. Further, it is important to note that, supply of goods to a branch / unit located within the same State having separate registration would also be liable to tax since both such units (supplying unit and recipient unit) would qualify as distinct person in terms of Section 25(4).

+ Who is responsible to pay taxes?

Generally, the person effecting taxable supplies is liable to pay taxes. However, Import of service will be taxable in the hands of the recipient i.e., importer.

Other registration required to start the business :

• Registration under Karnataka Shops and Establishment Act
• Profession Tax Registration
• MSME | Udyog Aadhaar Registration
• Employee Provident Fund Registration (PF Registration) 
• Employee State Insurance Registration (ESI Registration)
• STPI Registration or Non-STPI Registration
• Import Export Code (IEC)
• Trade License from BBMP