Registration of Dealers under GST, Exempted List

The GST Network that controls and monitors GST returns filings has further simplified the registration process for filings under the new indirect tax regime. Earlier, traders had complained that they were still facing some issues related to GST and returns sunder it.

So, the authorities took it upon themselves and started educating the trader community. Knowing GST rules and methods of filing returns under it are very important. This write-up explains in detail GST registration for new dealers.

Step by step guide

Here is a step-by-step guide that will further simplify for new dealers to understand the method for registration under the regime.

1– New dealers are required to fill and submit online a single application form to get themselves registered for GST transactions.

2– A PAN-based registration will serve the purpose of the Centre and the states.

3– A unified application to both tax authorities, in this case, the central and the state authorities.

4– Each dealer will get or to be given a unique identification that is known as GSTIN.

5– Users will get a deemed approval within three days.

6– Post registration verification in risk based cases only.

GST Exempted List

Exempt supplies comprise the following three types of supplies:

1. Supplies taxable at a ‘NIL’ rate of tax* (0% tax);
2. Supplies that are wholly or partially exempted from CGST or IGST, by way of a notification amending Section 11 of CGST Act or Section 6 of IGST Act;
3. Non-taxable supplies as defined under Section 2(78) – supplies that are not taxable under the Act (For Example Alcoholic liquor for human consumption.

Central or the State Governments are empowered to grant exemptions from GST. Conditions are:

1. Exemption should be in public interest
2. By way of issue of notification
3. Must be recommended by the GST Council
4. Absolute exemption or conditional exemption may be for any goods and / or services of any specified description.
5. Exemption by way of special order (not notification) may be granted exceptional circumstances.
6. Registered person supplying the goods and / or services is not entitled to collect tax higher than the effective rate, where the supply enjoys an absolute exemption.

Types of Exemptions:

Absolute exemption: Exemption without any conditions.

Ex: Transmission or distribution of electricity by an electricity transmission or distribution utility, Services by Reserve Bank of India.

Conditional Exemption: Exemption subject to certain conditions.

Ex: Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation less than ` 1000/- per day”.

Conditional or partial exemption:

Intra-State supplies of goods and/or services received from an unregistered person by a registered person is exempted from payment of tax under reverse charge provided the aggregate value of such supplies received by a registered person from all or any of the suppliers does not exceed ` 5000/- in a day.