INCOME TAX AND GST

MODULE I – INCOME TAX CONTD

GST registra on
GST registra on is a mandatory process of obtaining a unique
iden fica on number for a business liable to pay Goods and Services
Tax.

Benefits of GST registra on

1. Legal recogni on for supply of goods or services.
2. Eligible to collect tax from person to whom supply made.
3. Legal compulsion to keep required books of accounts.
4. Proper u liza on of input tax paid.
5. Eligible to par cipates government bids.
6. Eligible to par cipate government contracts.
7. Helpful to gain customer trust.
8. Eligible to avail benefits and privileges under GST Act.

Persons liable for GST registra on

 Aggregate turnover exceeds RS4000000 and 2000000 in special
states.
 Exis ng registrants under old laws are deemed registered.
 Casual taxable person making taxable supply.
 Input service distributor.
 Person required to deduct TDS under GST.
 Agent of suppliers.
 E commerce operators liable to collect tax.
 Non-resident making taxable supply.

Persons not liable for GST registra on

 Agriculturists.
 Person making only exempt supply.
 Person making only non-taxable supply.
 Person with turnover below threshold limit.
Process of GST registra on
 Visit GST portal and sign up.
 Fill applica on with required details.
 Verify business details via OTP or Email.
 Submit documents (PAN, Aadhar etc.)
 Verifica on and approval.
 Get GSTIN

Different types of GST registra on (2025)

1. Compulsory registra on
2. Voluntary registra on
3. Suo moto registra on
4. Deemed registra on
5. Casual taxable person registra on

1. Compulsory registra on
It is a type of registra on that is mandatory for businesses with
turnover exceeds Rs 40 lakhs and 20 lakhs for special states.
2. Voluntary registra on
It is a type of registra on that is not mandatory for businesses. This
type of registra on opted with turnover below the threshold limit to
avail benefits like input tax credits.
3. Suo moto registra on
This is a type of registra on where GST authori es register a business
on their own ini a ves, when they detect tax evasion or
noncompliance.
4. Deemed registra on
It is a type of registra on that a taxpayer is registered under GST
automa cally by a proper officer. This is applicable if the turnover
crosses the threshold.
5. Casual taxable person registra on
It is a type of registra on for businesses that supply goods or services
on a temporary basis, like an event or exhibi on.
Prerequisites for GST registra on (2024,2025 – ESSAY)
 PAN (Permanent Account Number)
 Aadhaar
 Business Registra on Documents
 Bank Account Details
 Authorized Signatory Details
 Business Address Proof
 Photos and IDs

GST Registra on cancella on

GST registra on cancella on means cancella on of a business GST
registra on, making it ineligible to collect GST or claim input tax
credit. It is also called suspension of registra on.

Condi ons of GST registra on cancelled (2024)

1. Business closure or discon nua on.
2. Aggregate turnover below Rs 40 lakhs and 20 lakhs for special
states.
3. Incorrect or fraudulent registra on.
4. Death of proprietor of the business.
5. Change in the cons tu on of the business.
6. Request by taxpayer for cancella on.
7. Merger, amalgama on or demerger of business.
8. Non-compliance with GST rules.

Procedure for cancella on of GST registra on (2023)

 Registered person submits cancella on applica on within 30 days
of event.
 Registered person must apply for cancella on in form GST REG -16
on GST portal.
 Proper officer will verify the applica on and issue a no ce in form
GST REG – 17 if required.
 Proper officer may approve cancella on if sa sfied with reasons.
 Proper officer issues cancella on order within 30 days of
applica on.
 Cancella on effec ve from date determined by officer.
 Person directed to pay arrears of tax, interest or penalty.

GSTIN (2023,2025)
GSTIN stands for GST iden fica on number. It is a unique 15-digit
alphanumeric code assigned to businesses registered under India's
GST system.

GST tax invoice

It is a mandatory legal document issued by a registered seller to a
buyer every me taxable goods or services are supplied. It may be
issued manually or electronically.

Content of GST tax invoice (2024)

 Name of the supplier.
 Address of the supplier.
 GST iden fica on number of the supplier.
 Name of the recipient.
 Address of the recipient.
 GST iden fica on number of recipient.
 Date of issue.
 HSN code.
 Descrip on of goods and services.
 Quan ty of goods.
 Taxable value of supply.
 Rate of tax.
 Place of supply.
 Address of delivery.
 Digital signature of supplier.

Types of tax invoices

1. Bills of supply
2. Credit note
3. Debit note
4. Aggregate invoice
Bill of supply
Bill of Supply is a document issued by a registered taxpayer instead of
a tax invoice when GST is not charged on the supply.

Debit note
Debit Note is a document issued by the supplier to the buyer
when the value of supply or tax charged is increased.

Credit note
Credit Note is a document issued by the supplier to the buyer when
the value of supply or tax charged is reduced.

Contents of a credit note or debit note

1. Name, address and GSTIN of supplier
2. Nature of the document
3. Consecu ve serial number not exceeding 16 characters
4. Date of the issue of the document
5. Name, address and GSTIN of recipient
6. Serial number and date of the corresponding tax invoice
7. Signature of the supplier.

Differences between debit note and credit note (2022)

Debit note Credit note
It is issue from buyer to seller. It is issue from seller to buyer.
It increases buyers’ liability. It decreases buyers’ liability.
It decreases sellers’ liability. It increases sellers’ liability.
Buyer ini a ves debit note. Seller ini a ves credit note.
It is used for purchases. It is used for sales.
It is like an invoice. It is like a credit memo.
Debit note increases taxable Credit note decreases taxable
value. value.

Aggregate invoice
Aggregate Invoice is a single combined tax invoice issued for mul ple
small transac ons made to unregistered customers during a day.
GST prac oners
GST prac oners is a government-approved tax professional
authorized to handle GST compliance for businesses

Eligibility to become a GST prac oner

 Ci zen of India
 Person of sound mind
 Not insolvent
 Not convicted by a competent court
 He is a re red officer of the commercial tax department
 He is enrolled as sales tax prac oner or tax return preparer.
 He has passed any of the following examina on
 Final examina on of ins tute of chartered accountants of India
 Final examination of institute of cost accountants of India
 Final examina on of ins tute of company secretariate of India

Role of a GST prac oner

 Furnish the details of outward.
 Furnish monthly, quarterly, annual or final return.
 Furnish informa on of genera on of E way bill.
 Furnish details of Chellan.
 File a claim for refund.
 File an applica on for cancella on of GST registra on.

GST return (2024)

GST return is a mandatory document or electronic form filed by
registered taxpayers with tax authori es, repor ng details of sales,
purchases, output tax, and input tax for a specific period.

First Return
It is the return filed by every tax registered person for the period
between the dates on which he became liable to get registra on ll
the date on which the registra on has been granted.
Annual Return
It is the return filed by every tax registered person annually for every
financial year in the prescribed manner.

Final Return
It is the return to be furnished by every registered person whose
registra on has been cancelled. It is to be done within three months
of the date of cancella on.

E-way bill (2023)

E-way bill is a digital document for transpor ng goods above ₹50,000
under GST framework.

Forms of GST return (2024)

Return Who files Purpose Due date
form
GSTR 1 Regular tax payer Details of outward 10th of the
supply next month
GSTR 2 Auto generated Details of inward 15th of the
supply next month
GSTR 3B Regular tax payer Summary return 20th of next
month
GSTR 4 Composi on dealer Quarterly return for 18th of next
composi on scheme succeeding
quarter
GSTR 5 Non-resident taxable Details of transac ons 20th of next
person by non – resident month
GSTR 6 Input service Distribu on of ITC 13th of next
distributor month
GSTR 7 TDS deductor Details of tax 10th of next
deducted at source month
GSTR 8 E commerce operator Details of TCS 10th of next
collected month
GSTR 9 Regular tax payer Annual return 31st
December of
 next financial
year
GSTR 9A Composi on dealer Annual return 31st
December of
next financial
year
GSTR 10 Tax payer Registra on Final return Within 3
cancelled months of
cancella on

PREPARED BY
JUBAIR MAJEED
9947050644