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What is included and excluded when calculating the total turnover of Rs 2 million to obtain GST registration? The GST law prescribes that a supplier of goods or services having an annual aggregate turnover not exceeding Rs 2 million (on an all-India basis) during a financial year is required to obtain GST registration. For specified north-eastern states, this threshold limit is Rs 1 million. Aggregate turnover under GST law includes the value of all taxable, exempt and zero-rated supplies (include exports and supplies to Special Economic Zones). For example, if a supplier is engaged in the supply of taxable goods worth Rs 1.1 million from Delhi and supplies exempt services from Haryana having a value of Rs 1 million, the aggregate turnover of the supplier shall be computed as Rs 2.1 million. Accordingly, he shall be liable to obtain registration. The aggregate turnover does not include inward supplies on which tax is required to be paid by the recipient under reverse charge mechanism. The aggregate turnover also does not include the central tax, state tax/union territory tax or integrated tax. Is there any mechanism under the GST law for amending the registration certificate? If there is any change in any of the particulars furnished in the application for registration, a person is required to file an amendment application online on the GST portal within 15 days. Upon submission of the amendment application, the proper officer may approve or reject amendments in the registration particulars within 15 working days from the date of receipt of the application for amendment. Permission of the proper officer for making amendments will be required for amendments in core fields of information, whereas for the other fields, the certificate of registration will stand amended upon submission of application on the GST common portal. A company had undertaken an inter-state transaction on which IGST should have been discharged. However, at the time of the transaction, the company inadvertently considered the transaction as intra-state and deposited CGST and SGST. Can it adjust the CGST and SGST deposited inadvertently with the IGST payable against the transaction? Amit Bhagat Under the GST law, there is no provision allowing a person to adjust CGST and SGST deposited inadvertently against a transaction liable to IGST. However, there is a specific provision under the GST law which allows a supplier to claim a refund of central tax and state tax paid on a transaction inadvertently considering it to be an intra-state transaction, though the transaction actually qualifies as an inter-state transaction. For this purpose, an application in the prescribed form is required to be filed specifically stating the details of such transaction.
The provision above specifically provides that no interest shall be payable due to delay in payment of IGST, if CGST and SGST had already been deposited earlier considering the transaction as an intra-state supply.A landlord, based in Haryana, has given out properties on rent in Delhi and Mumbai. Where should the landlord register himself? A person having an annual aggregate turnover not exceeding Rs 2 million on an all-India basis is not required to obtain GST registration. In case of renting of immovable property, the government through its tweet has clarified that registration shall be required only in the state from where the services are supplied. We understand that the landlord is based out of Haryana and does not have any presence in Delhi or Mumbai. It can be, therefore, contended that he is supplying inter-state services from Haryana. The landlord, hence, should be required to obtain registration in Haryana only.
The writer is tax partner, PwC India. Aditya Khanna, associate director, PwC contributed to this column. The views expressed are the experts’ own. Send your queries to firstname.lastname@example.org