5 Questions about GST Registration in Delhi Answered

5 Questions about GST Registration in Delhi Answered

Five Questions Answered about GST Registration in Delhi

Goods and Services Tax (GST) has subsumed all other indirect taxes like VAT and excise duty in India. Since, it was announced to be in effect on July 1, 2017, GST has already made major business style changes all over India. The threshold amount has been set at 20 lakhs for all states excluding North-Eastern states where the threshold amount is 10 lakhs.

Delhi being the capital and one of the most business forward states in India, it has small to multinational businesses here. Are you a taxpayer or a business owner in Delhi?

Here are 5 questions about GST registration in Delhi answered for you!

What are the advantages of registering under GST in Delhi?

Since GST is a single tax system all over India, the benefits apply to all over India not just Delhi.

• Legal supplier of goods and/or services.

• Business can utilize taxes paid on the input services or goods for payment of GST due on supply of services
or goods or both through proper accounting.

• Can collect tax from purchasers and pass on the credit of the taxes to recipients or purchasers.

• Eligible for other privileges and benefits under GST laws.

Can you claim ITC and collect tax if you are not registered under GST?

Not possible. You cannot collect GST from customers or claim any input tax credit of GST paid by you.

How do I know if I am liable to register under GST?

This has been addressed on Section 22 of the CGST/SGST Act 2017.

• Each supplier, including the agent of the supplier, making a supply of services and goods which are taxable
under GST law, and the aggregate turnover exceeds the threshold limit of 20 lakhs within a financial year.

• If you operate from the 11 special category states or North-Eastern states then the threshold limit for
registration is 10 lakhs.

• Section 24 of the Act states certain categories of suppliers who are liable to make registration under GST
even in the case where turnover is below the threshold limit of 20 lakh rupees.

• As per section 23 of the Act, an agriculturist like any other person making a supply of non-taxable goods
will not be liable to register.

Is there a time limit for taking a GST registration?

A person shall take a registration within a 30-day time period from the date on which s/he becomes liable for GST registration as per conditions prescribed under the registration rules. A non-resident taxable and casual taxable person should apply 5 days prior to the start of business for registration.

Can a person operating with the same PAN number in different states use a single GST registration?

No. Each person liable to register under GST needs to register for each states where s/he has a business operation separately and has to pay GST as per Section 22(1) of the CGST/SGST Act.

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