GST in India was implemented from 1st July 2017, after which most of the indirect taxes were removed. After this, any person who supplied goods or services had to get GST registration.
Any person can get registered for GST in 3 cases –
- If the turnover exceeds the prescribed limit (GST registration threshold limit)
- In case of compulsory registration,
- Getting GST registration by the person on his own will (Voluntary registration)
Can a person have more than one GST registration number in a state?
Registration in GST is based on PAN number, if a supplier is liable for registration in GST, then he will have to obtain GST registration number for all those businesses which are operated with one PAN number.
E.g. – ABC ltd. does business in 3 states, now if it becomes mandatory for him to get registered in GST, then he will have to get GST registration done in these three states. (Read More: Initial Steps For Auditing In GST And By Whom It Is Conducted?)
Apart from this, if a supplier does business in a state, and has 5 branches in that state, then that supplier need not take separate registration for those 5 branches, but if the supplier desires, he can get separate registration for these branches.
In case of taking separate registrations, separate GST compliance will have to be done for all these branches.
Does “In which state the goods will be supplied by the person” make a difference?
If a person supplies in a special category of states, then the GST registration turnover limit applicable to him becomes different, whether he is supplying goods or services or both.
What are GST Audit and its purpose?
The purpose of a GST Audit is to examine the records maintained by a business or person who has opted for GST registration.
This type of audit checks the level of reliability and correctness of the information present in the records, basically in the returns filed by the GST registered person so that it can be said that the records comply with the rules and regulations of the GST Act.
During GST Audit, the accounts and filed returns are verified by a tax officer, CA, or CMA.
Correction in returns after an audit in GST?
If a taxable person finds any omission or misstatement (because of audit) after submission of return, he can make it subject to payment of interest. However, no rectification shall be allowed till the end of the financial year or the due date of filing of return for September or the second quarter, after the actual date of filing of respective annuals.
For example, X found during an audit that he made a mistake in his October 2018 return. Now after that, on 31st August 2019, X has submitted the annual return for the financial year 2018-19 along with the audited accounts. Now he can rectify the mistake of October 2018.
Compulsions of GST audit
For GST Audit, the taxable person also has some obligations, he/she must:
- Help the auditor by providing the necessary facility to him so that he can conduct the audit easily
- Give correct information or support to complete the audit in GST on time.