Post gst regime and having excise/vat registrations

This query is : Resolved

Subramanya (Querist)
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20 January 2017 Dear All,

I need clarification with regard to following issue.

Say ABC Manufacturers having two units in Bangalore-> Unit 1 and Unit 2 having both Excise and VAT registration in current regime, these two manufacturing units have different Business verticles.

ABC Manufacturers registered :
1. Under Excise and having separate registration number
2. Under VAT and having single registration

Let's assume, in post-GST regime, ABC manufacturers falling under Excise and VAT also. In such scenario, due to different Business verticles they should get registered under GST having two registrations ?
As per earlier Excise law as they have registered, having two units and registrations, they should file separate Excise return for Unit 1 and Unit 2 ?
As per earlier VAT law as they have registered having one registration, they should file one return for both Unit 1 and Unit 2

So,
As per GST, they have to file two Return
As per Excise, they have to file two Return
As per VAT, they have to file one Return

Is my understanding is correct ? Request to clarify.

Swati

Swati (Expert)
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28 January 2017 post-gst regime, you will file only gst returns..no excise or vat returns. and gst returns shall be filed monthly on 10th of following month for sales, 15th of following month for purchases and on 20th monthly return.

Subramanya

Subramanya (Querist)
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31 January 2017 Incase client is having Excise and VAT applicable in GST regime (for Tobacco Industry) ?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 Your understanding is close, but let me clarify how the GST regime affects the registration and return filing for ABC Manufacturers with respect to Excise, VAT, and GST.

### **Current Situation:**
1. **Excise Registration:**
- Unit 1 and Unit 2 have separate Excise registrations.
- Separate Excise returns are filed for Unit 1 and Unit 2.

2. **VAT Registration:**
- ABC Manufacturers have a single VAT registration for both units.
- A single VAT return is filed for both Unit 1 and Unit 2.

### **Post-GST Regime:**

Under GST, the registration and return filing rules are different. Here’s how it works:

1. **GST Registration:**
- **Single Registration per State for Each Business Vertical:**
- **Business Vertical:** If Unit 1 and Unit 2 are distinct business verticals, then ABC Manufacturers can opt to have separate GST registrations for each business vertical within the same state.
- **Single Registration:** If the units are part of the same business vertical or are not distinctly different, you may opt for a single GST registration for both units.

In your case, if the business verticals are distinct, you can have:
- **Separate GST Registrations:** One for Unit 1 and another for Unit 2. Each unit will then file GST returns separately for their respective registrations.

2. **Return Filing under GST:**
- **GST Returns:** Each GST registration (for each unit or business vertical) will have to file its own GST returns. The filing frequency and type of returns (e.g., GSTR-1, GSTR-3B) will depend on the registration and applicable GST rules.
- **Monthly Returns:** GST returns are generally filed monthly (GSTR-1, GSTR-3B) and annually (GSTR-9).

3. **Excise and VAT Post-GST:**
- **Excise:** For tobacco and other goods where excise duty is applicable even under GST, you will need to comply with the Central Excise Act in addition to GST. Excise duty on products like tobacco will be applicable, and you will have to follow the specific rules for filing excise returns.
- **VAT:** VAT will not be applicable post-GST for most goods and services. However, if there are specific transactions or industries where VAT still applies, compliance with the relevant state laws will be required.

### **Summary:**

1. **GST Registration:**
- You may opt for **separate GST registrations** if Unit 1 and Unit 2 are distinct business verticals. Each unit will then have to file its own GST returns.
- If not distinct, you may opt for a **single GST registration** covering both units.

2. **Excise and VAT:**
- **Excise:** If applicable (e.g., tobacco), continue to file excise returns as per the specific rules.
- **VAT:** Generally, VAT will not apply under GST. Ensure compliance with any residual VAT requirements if applicable.

3. **Return Filing:**
- **GST:** Separate returns for each GST registration.
- **Excise:** Continue as per the specific excise rules.
- **VAT:** If applicable, follow any state-specific VAT rules.

For tobacco or other specific sectors where excise duty applies, it's crucial to follow the updated regulations under both GST and excise laws to ensure compliance.