GST Bill Software – A Comprehensive Guide

GST bill software
Goods and Services Tax (GST) – Introduction to GST Bill
April 22, 2017
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GST Bill Software – A Comprehensive Guide

gst india faq

GST Bill is Goods and Services Tax bill newly introduced in India to replace the older and outdated tax collection systems and making direct tax collection simpler in India.

GST termed for Goods and Services Tax, officially called as the The Constitution (One Hundred Twenty-second Amendment) Bill, 2014 to be valid throughout India effective from April 1, 2017, i.e from the new financial year as per wikipedia.

The Foundation and roots of the GST Adoption Bill were laid during the time period of Shri Atal Bihari Vajpayee Government in 2002. But it wasn’t started by then and the first GST Bill was passed on August 8, 2016.

Ever since the launch of GST Bill under Prime Minister – Mr. Narendra Modi’s Government, there is a lot of confusion about the Goods and Service Tax and so we at Tuluzz.com, decided to prepare the most searched FAQ on GST Bill that will clear all your Doubts.

gst india faq

GST FAQ

What is GST Bill or GST Tax System?

Goods and Services Tax is a national level tax levied on the Sale, Manufacture, and Consumption of Goods and Services. The GST will replace all your state and central taxes by one simple Tax called GST. To fully understand the GST Bill, Download this file here – goods-services-tax-an-overview.

How GST Bill is Introduced and Who Passed it ?

GST Bill was passed in accordance with the provisions of Article 368 of the Constitution as 122 Constitution Amendment, the bill no. 192 of 2014, and must be ratified by more than half of the State Legislatures ( 15 States minimum required ), as required under Clause (2) of the said article. On 12 August 2016. For a complete list of Progress of States Ratification Dates of the GST bill, view here.

What will Happen with Export Taxes, When GST is Levied ?

Nothing will change with export taxes and has no connection with GST and it will remain the same.

What happens to my Income Tax After GST Bill is Introduced ?

Since Income Tax is a direct tax on your Savings and therefore, nothing will change with the Introduction of GST Bill.

What will happen to Corporate Taxes and Capital Gains ?

They will work as usual and nothing will change with Corporate Taxes and Capital gains even after GST Bill is applicable and effective.

Where GST Bill Won’t be Applicable ?

GST Bill won’t be applicable for the following industries: Crude petroleum, Motor Spirit, Diesel, Turbine Fuel & Natural Gas.

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Why GST is necessary and Good for India?

  • With the Increase in services of International Trade in India, GST has become a global standard and a preferred choice of tax system. Also :-
  • GST Bill is necessary to abandon the Cascading Effect of Taxes. A Product with excise duty paid is also liable to Pay Value Added Tax (VAT). Due to this, a double tax is paid on the same product.
  • GST Bill will create a common market across the different State members of India and will strengthen the Interstate business.
  • Prices of the Produced Goods will reduce/decrease because of the credit of input tax against output tax.
  • GST is necessary to structure the currently complex indirect taxation system in India and it is global standard for economic growth.

What GST will Comprises of ?

GST will comprise of CGST & SGST.

  • CGST –  Central GST
  • SGST – State GST

And then, there is also IGST – Integrated GST, which will be levied by Central Government on Inter-State Supply of Goods and Services.

Why GST Can be Bad for India, GST Disadvantages ?

GST in a way is a dual tax imposed and collected by both State Government and Central Government on Sale of Single Transaction of Goods and Services.

The Central excise is the currently the main indirect tax system with an exemption limit of Rs. 1.50 Crores and traders are not liable t pay Central Excise. But after GST is applicable, this tax has to be paid indirectly.

Dealers have to now Pay the CGST, which was mostly not present in the current taxation system.

Who will Pay CGST and SGST and How it will Work ?

On all Intra-State transactions, the CGST and SGST will be first collected by Seller from the buyer and later, CGST will go to central Government and SGST with State Government.

On all Inter-State Transactions, IGST (Integrated GST) will be levied and is based on destination principle, where the product will be sold to.

How Existing Taxpayers can Enroll with GST ?

Anyone who is an existing tax payer, has to be register with the GST Official Website – gst.gov.in.

Is there any Official Guidelines for GST FAQ ?

Yes, there is an official booklet of GST FAQ, released by the Finance Minister of India, Mr. Arun Jetley.

Overview of Enrollment Under GST Scheme

1. Who is an existing taxpayer?

An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act.

Existing taxpayers include taxpayers already registered under:-

  • Central Excise
  • Service Tax
  • State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
  • Entry Tax
  • Luxury Tax
  • Entertainment Tax (except levied by the local bodies)

2. What does the word ‘enrollment’ under the GST Common Portal mean?

Enrollment under GST means validating the data of existing taxpayers and filling up the remaining key fields by the taxpayer in the Enrollment Application at the GST Common Portal.

3. Do I need to enrol for GST?

All existing taxpayers registered under any of the Acts as specified in Question 1 will be transitioned to GST. The enrollment for GST will ensure smooth transition to the GST regime.

The data available with various tax authorities is incomplete and thus fresh enrollment has been planned.

Also, this will ensure latest data of taxpayers is available in the GST database without any recourse to amendment process, which is the norm to update the data under tax statutes today.

Goods and Services Tax India

4. Why do I need to enroll myself as a taxpayer on the GST Common Portal?

The GST Common Portal has been made available to enable taxpayers to enroll with GST. Paper-based enrollment option is NOT available.

The GST Common Portal will enable taxpayers to meet the GST compliance requirement like filing a return and making a tax payment. Using the Portal requires existing taxpayers to enroll.

5. Is there a concept of deemed enrollment under GST?

No. There is no deemed enrollment under GST. All the taxpayers registered under any of the Acts as specified in Question 1, are expected to visit the GST Common Portal and enroll themselves at the GST Common Portal.

6. Is there a fee or charge levied for the enrollment under GST?

No. There is no fee or charge levied for the enrollment of a taxpayer under GST.

7. When do I need to enroll with the GST Common Portal?

the taxpayers registered under any of the Acts as specified under Question 1 are required to enroll at the GST Common Portal. The State VAT and Central Excise registered taxpayers can start enrolling from October 2016 on the GST Common Portal as per plan indicated on the Portal. The taxpayers registered under Service Tax will be enrolled on a later date for which separate intimation will be sent.

No. The enrollment process is common for all taxpayers registered under Centre, State or Union Territory Tax Acts as specified in Question 1.

8. Are existing taxpayers required to enroll separately with Central and State authorities under GST?

No, any existing taxpayer who wants to seek enrollment under the GST Act needs to apply at the GST Common Portal. Enrollment under the GST is common for both Central GST and the State GST. There will be common registration, common return and common Challan for Central and State GST.

9. Which information and documents are required to enroll with GST?

Before enrolling with the GST Common Portal, you must ensure to have the following information:

  • Provisional ID received from State/ Central Authorities
  • Password received from the State/ Central Authorities
  • Valid E-mail Address
  • Valid Mobile Number
  • Bank Account Number
  • Bank IFSC
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Documents

S.No.

Documents

File Size Format

Maximum Allowable Size

1.

Proof of Constitution of Business

  • In case of Partnership firm: Partnership Deed of Partnership Firm (PDF and JPEG format in maximum size of 1 MB)
  • In case of Others: Registration Certificate of the Business Entity

PDF or JPEG

1 MB

2.

Photograph of Promoters/ Partners/ Karta of HUF

JPEG

100 KB

3.

Proof of Appointment of Authorized Signatory

PDF or JPEG

1 MB

4.

Photograph of Authorized Signatory

JPEG

100 KB

5.

Opening page of Bank Passbook/ Statement containing Bank Account Number of < Account Number>, Address of Branch,

Address of Account holder and few transaction details

PDF and JPEG

1 MB

In case you are unable to upload any document, check the Internet connectivity, file size and format of the document you are trying to upload.

FAQ – Filling the Enrollment Application for GST Bill ?

1. For login to the GST Common Portal, can I use the username and password which I use to login as State Registrant?

No, you cannot use the username or password that you use to login to the State VAT Portal.

For the first time login to the GST Common Portal, you need to provide the username and password that you received from the State VAT or Centre Tax Department. For subsequent login, you need to create a username and password during enrollment at the GST Common Portal. You can then use the username and password that you created to login at the GST Common Portal.

2. Which username can I choose after first login?

You can choose any username of your choice following the rules of the username creation as displayed during username creation.

3. I have not received my username and password to apply for enrollment with GST. What do I do now?

In case you have not received your username and password for login to the GST Common Portal, contact your state VAT department.

4. Can I give e-mail address and mobile number of my Tax Professional during enrollment with GST?

No, you cannot mention the e-mail address and mobile number of your Tax Professional during enrollment. You MUST provide the e-mail address and mobile number of the primary Authorized Signatory appointed by you. This e-mail address and mobile number will be registered with GST. All future correspondence from the GST Common Portal will be sent on this registered mobile number and e-mail address only.

Tax professionals will be given separate username and password by the GST System for the purpose of login to the GST Common Portal.

5. Who can be the primary Authorized Signatory?

A primary Authorized Signatory is the person who is primarily responsible for performing an action at the GST Common Portal on behalf of the taxpayer. All communication from the GST Common Portal relating to taxpayer will be sent to the primary Authorized Signatory.

Type of Business Who can be the Authorized Signatory?

Proprietor

 The proprietor or any person authorized  by the proprietor

Partnership

 Any authorized  partner or any person authorized  by the partners

Company, LLP, Society or Trust

 The person authorized by Board or Governing Body. can act as Primary Authorized Signatory

In case there is a single Authorized Signatory for a business entity, the single Authorized Signatory will be assumed to be the primary Authorized Signatory.

In case there are multiple Authorized Signatories for a single business entity, one Authorized Signatory need to be designated as primary Authorized Signatory. The e-mail address and mobile number of the Authorized Signatory needs to be provided during enrollment.

Note: The Authorized Signatory or Primary Authorized cannot be Minor in age.

6. How long is the OTP valid?

The OTP sent to your e-mail address and mobile number is valid for 10 minutes. It expires after 10 minutes.

7. I have not received the OTP on my mobile? What do I do now?

Your OTP is sent on your registered mobile number and e-mail address. If you have not received the OTP within 10 minutes, click the RESEND OTP button. The OTP will be sent again on your registered e-mail address and mobile number.

If you do not receive the OTP via SMS on your mobile number even after clicking the RESEND OTP button, please verify if the mobile number provided by you is correct.

If you do not receive the OTP on your e-mail address even after clicking the RESEND OTP button, please verify if your e-mail address entered is correct and the Internet and mobile network are available.

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8. Why have I received two different One Time Passwords (OTPs)? Or I have received OTP in my mobile number. I have entered the same OTP in the OTP verification page for E-mail OTP and Mobile OTP fields. Are these OTPs different?

All future correspondence from the GST Common Portal will be sent on the registered e-mail address and mobile number only. Both the e-mail address and mobile number need to be verified using the OTPs.

During verification, two separate OTPs are sent. One OTP is sent on e-mail address and another OPT is sent on mobile number

Enter the OTP that you received on your e-mail address in the Email OTP field.

Enter the OTP received on your mobile number in the Mobile OTP field.

9. Which details are prefilled in the Enrollment Application? Can I make changes in my Legal Name, State Name and PAN in the Enrollment Application?

Following details are auto-populated from the VAT database in the Enrollment Application:

  • PAN of the Business
  • Legal Name of Business
  • Name of the State
  • Reason of liability to obtain registration

You cannot make changes to any of these fields as appearing in the Enrollment Application.

10. What does the red asterisk (*) appearing besides the fields in the Enrollment Application indicate?

Red asterisk (*) indicates mandatory field. You need to fill all mandatory fields to submit the Enrollment Application successfully.

11. In the Enrollment Application, I need to fill the State Jurisdiction, Ward, Circle, Sector No. and Center Jurisdiction? How can I find these details?

Refer your VAT Registration Certificate to find your State Jurisdiction and Ward, Circle and Sector No.

If you are registered with Central Excise, refer the Registration Certificate to find your Center Jurisdiction.

If you are only a VAT registered dealer, you need to find your Central Jurisdiction based on the address of your Principal place of Business. You may visit CBEC website www.cbec.gov.in for details.

(Refer URL- http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/cadre-restruct/cadre-restructg-notifications.pdf).

12. I filled all the details in the Business Details page while filling the form. But now all the fields are appearing blank. Why?

You need to save every tab page of the Enrollment Application after filling the details. Click the SAVE & CONTINUE button at the bottom of each page to save the entered details and then proceed further to the next page.

13. What is DIN?

DIN stands for Director Identification Number given to Directors of a Company by Ministry of Corporate Affairs. To know your DIN, refer your DIN allotment letter issued by Ministry of Corporate Affairs or visit the MCA Portal – www.mca.gov.in .

14. What is Principal Place of Business and Additional Place of Business?

Principal Place of Business is the primary location within the State where a taxpayer’s business is performed. The principal place of business is generally the address where the business’s books of accounts and records are kept and is often where the head of the firm or at least top management is located.

Additional Place of business is the place of business where taxpayer carries out business related activities within the State, in addition to the Principal Place of Business.

gst tax system india

15. What is HSN and SAC code?

HSN stands for Harmonized System of Nomenclature which is internationally accepted product coding system used to maintain uniformity in the classification of goods.

SAC stands for Service Accounting Codes which are adopted by the Central Board of Excise and Customs (CBEC) for identification of the services.

16. Which bank account should I provide in the Enrollment Application? I have more than one bank account. Can I add all of them while enrolling with GST Common Portal?

Enter the details of the bank accounts used for the purpose of carrying out business transactions in the Enrollment Application while enrolling with the GST Common Portal.

You can add up to 10 bank accounts while enrolling with GST Common Portal in the Enrollment Application.

17. Can I submit my Enrollment Application at GST Common Portal without electronically signing the application with DSC or E-sign?

Yes, you can submit the Enrollment Application at GST Common Portal without electronically signing it but you need to sign the application at a later date within the time allowed under the GST Act. Only signed Enrollment Applications shall be considered for issue of Final Registration Certificate. You can view the submitted application after login by accessing “My Saved Applications” at the GST Common Portal.

18. Is electronically signing the Enrollment Application using the DSC mandatory for enrollment?

Electronically signing the Enrollment Application using DSC is mandatory for enrollment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs).

For other taxpayers, electronically signing using DSC is optional.

19. My DSC is not registered with the GST Common Portal? Will I be able to submit my Enrollment Application with my DSC? How can I register my DSC with the GST Common Portal?

You cannot submit the Enrollment Application if your DSC is not registered with the GST Common Portal. Therefore, you need to register your DSC at the GST Common Portal by clicking the Register DSC menu.

During registration of DSC with the GST Common Portal, the PAN of the DSC holder will be matched with the PAN database of the CBDT. After validation, you need to select the certificate that you need to register.

Note: Only Class -2 or Class 3 DSC can be registered at the GST Common Portal.

20. What is E-Sign? How does it work?

E-Sign stands for Electronic Signature. E-Sign is an online electronic signature service that allows an Aadhaar holder to digitally sign a document. If the taxpayer opts to electronically sign the Enrollment Application or any other document at the GST Common Portal using the E-Sign service, the following steps are performed:-

  1. The taxpayer clicks the E-sign button.
  2. The GST Common Portal prompts the taxpayer to enter the Aadhaar number of the Authorized Signatory.
  3. After validating the Aadhar Number, the GST Common Portal sends a request to UIDAI system to send an OTP.
  4. UIDAI system sends an OTP to e-mail address and mobile number registered against Aadhaar number.
  5. The GST System prompts the taxpayer to enter the OTP.
  6. The taxpayer enters the OTP and submits the Enrollment Application or the document. The e-Signing process is completed.

21. Is there any charge applicable on submission of the Enrollment Application at the GST Common Portal?

No, there is no charge applicable on submission of the Enrollment Application at the GST Common Portal.

22. What is ARN? What is the format of ARN?

ARN refers to Application Reference Number. It is a unique number assigned to each transaction completed at the GST Common Portal. It will also be generated on submission of the Enrollment Application that is electronically signed using DSC. ARN can be used for future correspondence with GSTN.

23. I have not yet received the Application Reference Number (ARN). What should I do now?

If you don’t receive ARN within 15 minutes of submission of the Enrollment Application, an e-mail will be sent to you with detailed instructions for further course of action.

24. While entering the details, the Internet connection was lost. How can I retrieve the saved Enrollment Application?

To retrieve the saved Enrollment Application, login to the GST Common Portal with valid credentials. Go to Dashboard > My Saved Applicationmenu. Click the Edit button to retrieve the saved Enrollment Application.

25. I got an e-mail indicating that there is a mismatch during PAN validation. What should I do now?

You need to resubmit the Enrollment Application with valid details as per your PAN details.

26. My DSC has expired or revoked? What do I do now?

You need to re-register your valid DSC with GST. Login to the GST Common Portal with valid credentials. Go to Dashboard > Register/ Update DSC menu.

In case of revocation, register another valid DSC with the GST Common Portal.

27. Is there a Helpdesk available?

Yes, Helpdesk is available and the call number is displayed on the top-right corner of the GST Common Portal.

28. I have multiple businesses in one state registered using the same PAN. Do I need to enroll each business separately with GST?

As one PAN allows one GST Registration in a State, you may register one business entity first. For the remaining business within the State please get in touch with your Jurisdictional Authority.

29. What is ISD Registration?

ISD stands for Input Service Distributor. An Input Service Distributor refers to a person who distributes credit, in respect of the tax invoices of the services received at the Head Office, to its branches where the services have been supplied actually. Tax invoice refers to the invoice issued under Section 23 of the Model Goods and Services Act.

If you are an existing ISD Taxpayer, you need to apply afresh in the GST Common Portal for the State in which you desire to seek registration. For that, you need to inform your Central Jurisdictional Authority.

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