Whether it is necessary to get registered in GST or not, depends on many factors. If any person was required to get registered in GST and did not get registered in GST, then a penalty will be imposed on him. To make your business more reliable and trustworthy in the eyes of the government, having a GST Audit is the ideal option.
Apart from this, if a person wants to get GST registration done of his own volition, then he can also get registered. All the provisions of GST will apply to all registered persons, whether they needed to get registered or not.
Who is required to get registered in GST? GST Registration Requirements –
For each Supplier whose total turnover in a Financial Year (FY) is Rs. 20 lakhs (from April 1, 2019, 40 lakhs), then it is necessary to get it registered in that state or union territory from where it supplies services or goods or both. (Read More: Some Rules Related To GST Act)
In the case of special category states, it is necessary to get registered in GST only if there is a turnover of more than 10 lakhs or 20 lakhs in a financial year. In these states – Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand have been included.
In the interim budget presented on February 1, 2019, the turnover for registering in GST was changed. According to which such persons who supply only goods and their turnover in the financial year are less than 40 lakhs, they don’t need to get registered in GST. However, such persons can register as per their wish.
To whom will the 40-lakh turnover limit not apply?
- Such persons are required to get registered in GST.
- Manufacturer of ice cream, pan masala, tobacco
- Persons doing intrastate supply in special category state
The person registered in GST must get his accounts audited by Chartered Accountant (CA) or Cost Accountant (CMA). A registered person must get GST AUDIT done as per the provisions of the GST Act.
The process of checking the records, returns, and other documents maintained or deposited by a GST registered person or entity under the GST Act is called GST Audit.
The registered person’s accounts are audited to verify that the turnover declared by that person, tax paid, refund claimed, and input tax credit received is accurate.
Apart from this, it is also seen in the GST audit that the registered person has complied with all the provisions of the GST Act.
Persons who are not required to get GST registration (exemption from GST registration) –
- Persons who supply such goods or services or both, which are not liable to tax and are fully exempt.
- An Agriculturist, one who supplies the products produced from the cultivation of the land.
“The definition of agriculturist is restrictive i.e., those who are directly engaged in the cultivation of land are exempted.”
As of now, you might have understood why GST registration, timely filing GST returns and GST Audit is important, we recommend that one should always take the help of experts in doing such type of complicated work. So, contact CAC and throw away all your stress by trusting their experienced professionals.