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Excise & service tax registration under gst

Ravi Modi (Director) (98 Points)

10 October 2016

We are Mumbai based PVT Ltd co. dealing in Computer goods. Currently we are registered under Maharastra VAT & doing trading of goods. We also do assembly of goods & AMC which are on small scale & currently not crossing the limits of Excise & S.Tax.. Hence we have not registered under Excise & S.Tax.

In future we will be expanding our assembly & AMC Business . Please advise under GST, can we freely do assembly & AMC without any excise or S.Tax registration. Will single registration of GST take care of Excise & S.Tax. Further Do we have maintaing Records / Registers currently maintained by Excise Manufacturers ( like RG-1, RG-23 etc)

Ravi.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 10 October 2016

VAT, Excise, Service tax, Octroi etc. all such indirect taxes will be subsumed in GST. Means all that procedure of maintaining records etc with present tax regime will be replaced with different regime (to be set up/ define), but you will be at liberty to do all such different activity under single set up & single registration, when value of all such exceed 20 Lakhs.

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 12 October 2016

Exception to Registration over 20 lakhs of supplies - One need toregister if:

1. One has interstate supplies/.

2. If one has to pay GST under reverse charge ( this can force many to get registered)

3. Any person who has to deduct tax at source ( aminly goivt etc)

4. Agent of regd person who supplies

5. E commerce operator

6. One who supplie services in the brand name of another

It is important to rgeister as one who is not registered cannot get the set off which can impact business severely.

1 Like

GST Pitara (gstpitara.org) (280 Points)
Replied 18 October 2016

GST will subsume indirect taxes like VAT, Excise Duty, Service Tax, Entry Tax, Octroi, Surcharges and Cesses, etc. So, there is no question of getting Excise or Service Tax registration. The company will only be required to get registration under GST Law.

The annual exemption threshold for levy of GST would be Rs. 20 lakh but, for the north-eastern and hill states, it would be Rs. 10 lakh, as decided in the first meeting of the GST Council. This threshold limit will be applicable to every person irrespective of whether he is trader or service provider. There will be a different set of limits of turnover (yet to be decided), for registration of an entity under GST i.e. if u cross the threshold of registration you will have to get the company registered and one you cross the threshold of Rs.20lakh /10 lakh then you will be liable to pay GST.

Also, Goods and Services Tax Network (GSTN) will be opening a website for the registration of taxpayers in November 2016. The existing taxpayers, who are registered under the respective state VAT laws or Service Tax Department would not have to apply for fresh registration as there will be a system of migration of the existing database to GST database. But, they will have to provide other necessary details which are not in the database of State Commercial Tax or Service Tax Department.

As far as records are concern, as per section 42 of Draft model GST Law, every registered person shall keep and maintain a true and correct account of:

production or manufacture of good
inward or outward supply of goods and/or services
stock of goods
input tax credit availed
output tax payable and paid
such other particulars as may be prescribed in this behalf

Also,The Commissioner and Chief Commissioner has the power to notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified.

So, nothing special is required to be maintained other than the accounting records usually maintained unless it is notified by the Commissioner and Chief Commissioner.