Every Nidhi Company is required to have Minimum Net Owned Funds of Rs. 10Lakh all the time.
Aggregate Amount of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet, provided the amount representing the proceeds of issue of preference share shall not be included for calculating net owned funds.
As Nidhi Company can provide loans to its members and can also accept deposits from its members only in accordance with the requirements of Nidhi Rules. Nidhi Company is Public limited Company so at the time of formation of Company minimum seven members are required and as par requirements of Nidhi Rules and Companies Act, 2013 a Nidhi Company should have 200 members within 1 year from the date of incorporation. Now it is important that how members are added in the Nidhi Company so Nidhi can provide loans to its members and accept deposits to its members.
There are two ways through which members are added in the company:
Nidhi Company may allot new shares to its members as par the provisions of the companies act, there is present exemption through which section of right issue and private placement is not applicable to Nidhi Company, so the shares can directly be allotted by Board Of Directors of the Company through a resolution passed. It is to be noted that no of shares allotted should not exceed authorized share capital of the Company.
As Nidhi company is a Public Limited Company , the shares of public limited company are freely transferable and existing shareholder of Nidhi Company may transfer his shares to another person , in this case he will also become member of nidhi company once his name is entered in the register of members.
India is one of the top growing economy in the world in the last decade Foreign Direct Investment by Foreign Nationals and foreign companies has increased significantly. Every Foreign Entity/ Nationals who intends to setup company in India has to follow the Indians Companies Act, 2013, Foreign Direct Investment Policy (FDI ) and Sector, Goods and Services Tax Act, Income Tax Act and Sector Specific Rules and Regulations like healthcare Company needs drug licences etc.
Investing in India by foreign entities into India is subject to FDI Policy, In India FDI policy has two different routes
#1. Automatic Route : In this route prior approval of Government is not required , only intimation is required to RBI in the Form FC-GPR , FDI Policy provides sectors where FDI is allowed at what percentage of Equity Capital of the Company.
#2. Approval Route : This is route prior approval of government is required, where FDI is allowed under approval route under FDI Policy.
In the recent times Indian has made much simplification process in registering or setting up company in India, Here is step by Step guide on setting up company by Foreign Nationals :
Indian companies Act requires that the Documents for foreign Directors and Foreign Investor or Shareholders should be noterised and Apostle, Documents may also be signed in India if the applicant is in India on Business Visa. Documents of foreign entities like 1. Certificate of Incorporation 2. Charter documents like MOA AOA, 3. Resolution by Board of Directors of Foreign Entities should be all in English Language and certified translated copy in English copy along with Noterised and apostle.
Indian companies act requires that every company in India should have at least on resident Director who is resident in India during the financial year, we at Fastlegal provides resident Director appointment services in India, you may avail our services if you do not have your own person.
Every Company in India should have Registered Office Address situated in India, you need to have one place as registered Office address. Fastlegal helps in getting the registered Office address.
Company name approval application is required to be made for availability of name of company, the company nme should be unique, no other company or LLP or trademark should be already there.
We need to obtain digital signature in the name of Directors and shareholders from certifying authorities in India , Fastlegal team members helps in getting the DSC. DSC are required for signing the incorporation documents that are required to be submitted to Registrar of companies.
Once all the required documents of foreign nationals and Indian Resident Director is fine and digital signatures have been obtained than incorporation application is required to be submitted. All applications are verified by the registrar of companies and once he is satisfied with all the particulars of the application, he MCA issues certificate of incorporation to company.
Once we get the certificate of incorporation, we need to proceed to open a bank account in the name of the company.
Now subscription money for equity capital is required to be invested into the company by the subscribers to the company.
Apostle and Notarized Signed Documents are required for foreign Shareholders and Directors.
[jotform id=”61411444894457″]
Selling on amazon is very popular and great business opportunity for Individuals have today, Selling on amazon means you buy products at lower wholesale rate and sell at retail prices on online store. Amazon is great marketplace and everyone who gives time to business gets the desired result. The more the older the business grows the more orders seller receives if he sales the right quality products at best prices as online market is growing at very high rate.
Partnership Firm is the popular form of doing business. Where two or more persons wants to carry on business a proper business structure is required in place for proper carrying on business, Partnership is traditional and most used form of business structure.
In India, Partnership is governed by the Indian Partnership Act, 1932. Partnership is defined as per section 4 of the Indian Partnership Act 1932 is as the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all.
Information required to start Partnership Firm and drafting of partnership deed:
Documents Required for Partnership Firm Registration :
Every Real Estate Agents in Rajasthan are now compulsory required to get registration under the provisions of The Real Estate (Regulation and Development) Act, 2016
“real estate agent” means any person, who negotiates or acts on behalf of one person in a transaction of transfer of his plot, apartment or building, as the case may be, in a real estate project, by way of sale, with another person or transfer of plot,apartment or building, as the case may be, of any other person to him and receives remuneration or fees or any other charges for his services whether as commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called.
The registration granted shall be valid for a period of five years.
Rupees ten thousand in case of the applicant being an individual or rupees fifty thousand in case of the applicant being anyone other than an individual
Professional Charges Rs. 10000 to 15000 for Registration of Real Estate Agent
Trademark is an Word, Logo, Numerals, Slogan which differentiates products and Services of one business from that of another Trademark Registration provides legal right for exclusive use of the mark to the owner of the trademark. Presently in India Trademark Registration takes around 2 year for the mark to get registered; however registration is effective from the date of filing of trademark Application.
Example of Trademark: Pepsi and Coca Cola are two trademarks from same industry (beverages) which distinctly identifies source or origin of the goods as well as an indication of quality.
Stage 1 Trademark Search
Before making any step further for trademark application, trademark search is very important thing is required to be made from trademark database provided by trademark department.
Stage 2 Trademark Application Filing
Once the Trademark Search report is positive, you can proceed for trademark application filing with Trademark Agent/Attorney.
Some of the following information is required for filing Trademark Application.
Download TRADEMARK QUESTIONNAIRE
| S.No. | Particulars | Details |
| 1. | Applicant Name(Pvt. Ltd./Public Ltd./Partnership Firm/Proprietorship Firm/Trust/Individual) | |
| 2. | Address of the Applicant | |
| 3. | Type of Organisation(Pvt. Ltd./Public Ltd./Partnership Firm/Proprietorship Firm/Trust/Individual) | |
| 4. | Full name of the Signatory(On behalf of company/firm/trust) | |
| 5. | Designation of Signatory | |
| 6. | Nationality of Signatory | |
| 7. | Father’s / husband’s name of Signatory | |
| 8. | Residence address of signatory | |
| 9. | Age of signatory | |
| 10. | Mark/brand name | |
| 11. | Goods / services (exact) | |
| 12. | Trade description(Manufacturer/Traders, Service Providers) | |
| 13. | User Date of the Brand/Mark | |
| 14. | Class of Trade Mark. Kindly refer to class details- there are 45 classes of trade mark. | |
| 15. | Contact No. | |
| 16. | Email id |
2. Documents Required : Signed Power of Attorney in form TM-48 from the applicant is required to be give to Trademark Attorney
Stage 3. Submission of Application: Once all the information and documents are ready, Trademark Attorney files the TM application to the Trademark Registry. This process usually takes 1-3 hours.
Stage 4. Trademark Application No and use of TM/SM along with your Mark : Once the TM application is submitted, an application is generated for every TM application. Once you get the application no. TM can be used along with your mark.
Stage 5. Issue of Examination Report by Trademark Registry : Normally Trademark Examination report is issued after 2-4 months of filing of TM application. In this step if any objection is received than the applicant through his attorney has to file reply for the same to the TM registry and if no objection is received than TM gets published in Trademark Journal.
Stage 6. Publishing of Trademark in Trademark Journal for Public Opposition: Once the mark publishes in trademark journal, it is available for public objection, if any objection is received , opposition proceedings are required to be done and if no objection is received than Trademark
Stage 7. Trademark Registration Certificate: Once all the proceedings are complete than Trademark Registration certificate is issued and proprietor becomes the absolute owner of the mark.
Government Fee : Rs. 4500/- for Individual and MSME enterprises and Rs.9000/- for others (per Application and per class)
Professional Fee: Rs. 2000/-
Private Limited Company Registration is the most popular structure for businesses and startups. Private Limited Company allows outside funding & Foreign Direct Investment easily. Private Limited Companies are required to hold Board Meetings,Register Secured Loans with Ministry of Corporate Affairs,Hold Members Meeting for Important matters,Make complete disclosures about important matters in their Board Report. Due to all these regulatory disclosures and requirements imposed on Private Limited Company by Company Law they tend to be viewed with more credibility than a Limited Liability Partnership (LLP), One Person Company (OPC), or General Partnership.
Yes, you need a minimum of two directors for a private limited company. The maximum members can be 200. If you are the sole owner, you can register as a One Person Company.
Any individual/Company/LLP can become the member of the private limited company including foreigners/NRI. However, the individual must 18+ above in terms of age and should have a valid PAN card.
No, It is not mandatory to have commercial address, you can form Company at Residential Address also, there is mandatory requirement to have Name Plate of the company along with CIN no.
CIN is always mentioned at Certificate of Incorproation of the Company , you are required to mentiond Company CIN at all commercial documents like Letter Heads, Visiting Cards, Website of the Company.
Memorandum of Association is Charter document of Company , where the name, state of registered office, Objects of the company , Share Capital are mentioned , while in AOA details regarding Authority and procedure for operations of the company are mentioned.
Every LLP (Limited Liability Partnership) is required to file its Annual Accounts (Statement of Accounts and Solvency ) , Annual Return and Income tax Return every year within the stipulated time, even LLP having nil turnover or LLP has not carried out any business operation during the reporting period.
Every LLP is required to File its Annual Return to ROC by 30th May of Every Year, failure to file Annual Return will attract Additional Fee of Rs. 100 per day with no upper limit. ( Delay of 30 days will cost you Rs. 100*30= 3000)
Every LLP is required to file its Annual Accounts with ROC by 30th Oct of every year, failure to file Annual Accounts will attract Additional Fee of Rs. 100 per day with no upper limit. ( Delay of 50 days will cost you Rs. 100*50= 5000) this is in addition to Additional fee to be paid for Form 11 , if not filed.
The due date for filing income tax return in case of a company for A Y 2018-19 is 30th September 2018(whether audit of accounts is required or not). It is applicable for income earned from April 1st, 2017 to March 31st, 2018. For LLP due date is September 30th (where audit is required), November 30th(where there are foreign transaction or specified domestic transactions) and in other cases due date is July 31.
Before we address the above question, let us analyse the definition of Associate Company given in Section 2(6) of Companies Act, 2013:
“Associate company”, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.
Explanation. – For the purposes of this clause, ―”significant influence” means control of at least twenty per cent. of total share capital, or of business decisions under an agreement.
Before going further we should first understand the meaning of term “control” used in the above explanation provided under the Act.
As per section 2(27) of Companies Act, 2013 the term control means and shall include:
“Control” shall include the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner.
After understanding the term control and reading the definition and explanation provided in Companies Act, 2013 it may be concluded that following conditions must be fulfilled by a Company for becoming Associate Company of another Company:
Example: Let us assume 2 companies A Private Limited & B Private Limited. Below are assumptive list of shareholders of both the Companies.
List of Shareholders of A Private Limited:
| S.No. | Name of Shareholder | % of Share Held |
| 1 | B Private Limited | 21 |
| 2 | C Private Limted | 18 |
| 3 | D Private Limted | 17 |
List of Shareholders of B Private Limited:
| S.No. | Name of Shareholder | % of Share Held |
| 1 | Mr. S | 21 |
| 2 | Mr. Y | 18 |
| 3 | Mr. Z | 17 |
By analysing the above list of shareholders of both the companies, the questions arises that which company is an associate company for another company?
The answer is obviously A Private Limited is an Associate Company for B Private Limited as B Private Limited is holding 21% Shares of A Private Limited.
A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
Below is a section wise analysis of compliances/restrictions are applicable if a Company has an Associate Company:
| S.No. | Corresponding Section of Companies Act,2013 | Subject | Impact |
| 1. | 129 | Consolidated Financial Statement | Consolidated Financial Statement shall also include financial statements of Associate Company. |
| 2. | 149(6) | Restrictions on appointment as an independent director | Following persons cannot be appointed as independent director in a company if they are:
1. A promoter or related to promoters or Director of an Associate Company. 2. Has/had or any of his relatives has or had pecuniary relationship with Associate Company. 3. Neither himself nor any of his relative held the position of key managerial personnel or has been employee of an Associate Company. |
| 3. | 2(76) | Related Party | It will be considered as Related Party. So Section 188(Related Party Transaction) as per the Companies Act, 2013 will be applicable. |
| 4. | 192 | Ordinary Resolution for non-cash transaction with the associate company | If directors of an Associate Company want to do any Non-Cash Transactions from company, then need to pass Ordinary Resolution. This section provides for the manner in respect of regulation of arrangements with respect to acquisition of assets for consideration other than cash. Such arrangements shall require prior approval by a resolution in general meeting and if the director or connected person is a director of its holding company, approval is required to be obtained by passing special resolution in general meeting of the holding company. |
Input tax in relation to a taxable person, means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act, Charged to him on any supply of goods and/or services which are used, or are intended to be used, in the course or furtherance of his business. Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and / or services.
2. Can GST paid on reverse charge be considered as input tax?
Yes. The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.
3.Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Yes. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one installment.
4.What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration?
He shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. It may be noted that the credit on pre-registration stock would not be admissible if the registration has not been obtained within a period of 30 days from the date on which he becomes liable to registration.
5.What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
The person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi finished goods and finished goods in stock, held on the day immediately preceding the date of registration.
6.Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?
The input tax credit of goods and / or service attributable to only taxable supplies can be taken by registered taxable person. It is important to note that credit on capital goods also would now be permitted on proportionate basis.
7.What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?
The registered taxable person who supplies goods and / or services which become absolutely exempt, has to pay an amount equivalent to the input tax credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such exemption. It has also been provided that after payment of the amount on such goods, the balance, if any available in electronic credit ledger would lapse..
8.A dealer paying tax on composition basis crosses the composition threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
He can avail ITC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax.
9.Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?
Yes, the principal is eligible to avail the input tax credit on inputs sent to job worker for job work.
10.What is the time period within which the inputs sent for job work has to be received back by the principal?
180 days.
10.Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?
Yes, the principal has to reverse the credit along with interest on inputs which have not been received back from job worker within 180 days but he can reclaim the credit on receipt of inputs.
11.What is the time period within which the capital goods sent for job work has to be received back by the principal?
Two years.
12.What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?
Principal has to pay an amount equal to credit taken on such capital goods along with interest. But he can reclaim the credit on receipt of inputs.
13.Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?
The input tax credit shall not be allowed on the said tax component.
14.What are the conditions necessary for obtaining ITC?
Following four conditions are stipulated:
(a) The registered taxable person should be in possession of taxpaying document issued by a supplier;
(b) The taxable person must have received the goods and / or services;
(c) The tax charged on such supply has been actually paid to the government either in cash or through utilization of input tax credit; and
(d) The taxable person should have furnished the return.
If a person gets his business registered within 30 days from the date of crossing of threshold limit for registration than effective date would be the date of crossing of threshold limit. If the person get his business registered voluntarily than effective date of registration would be the date on which registration is granted.
3.Who is liable for Registration under GST?
Every person who makes taxable supply of goods or services and whose aggregate turnover in a financial year (against a PAN) exceeds the threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for Special Category states) is liable for Registration under GST.
4.Which are the special category states under GST?
Following states are special category states for the purpose of GST:
Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.
5.What is the meaning of aggregate turnover under GST?
Aggregate value of all taxable supplies (excluding the value of supplies on which tax is payable under reverse charge mechanism) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess.
6.Under which circumstances registration is mandatory under GST, even when the turnover has not crossed threshold limit?
Person who are required to deduct tax. 7.Weather separate registration is required for each state in which a person carrying business?
Yes. Separate registration is required for each state where a taxable person is making any supply of goods or services.
8.Can a person get more than one registration in a state if he is carrying on more than one business against the same PAN?
Yes. A person may obtain different registration on a single PAN if having different kind of business verticals.
9.Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
Yes. Every person shall have a Permanent Account Number in order to be eligible for grant of registration under Section 19 of the Model GST Law. However PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed.
10.Is it necessary for the Govt. organization to get registration?
A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.
11.At the time of registration will the assesses have to declare all his places of business?
Yes. The principal place of business and place of business have been separately defined under section 2(78) & 2(75) of MGL respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.
12.Can the registration certificate be downloaded from the GSTN portal?
In case registration is granted, applicant can download the Registration Certificate from the GST common portal.
13.Where and how can I apply for Registration under GST?
You can apply for GST Registration online using the GST web portal. No Physical (manual) application is required.
14.Do I need to visit tax department for submission of hard copies of GST Registration?
No, you don’t need to submit hard copies to tax department as new registration process is paperless.
15.What documents/information required for GST Registration?
1. What is GSTR-3B?
GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for the tax period and the discharge of these liabilities in a timely manner.
A normal taxpayer is required to file GSTR-1, 2, & 3 returns for every tax period. In case of extension of due dates for filing of GSTR-1 and GSTR-2, GSTR-3B needs to be filed and subsequently if there is any discrepancy between the system generated 3B and earlier filed 3B the taxpayer will have to pay additional tax, liability and other dues.
2.Who needs to file the GSTR-3B?
All normal taxpayers and casual taxpayers are required to file the GSTR-3B every time there is an extension of due dates of filing for GSTR-1 and GSTR-2.
3. Where can I file GSTR-3B?
GSTR-3B can be filed from the returns section of the GST Portal. In the post login mode, you can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, GSTR-3B, (if applicable), in the given period will be displayed.
4. By when do I need to file GSTR-3B?
GSRR-3B is required to be filed by 20th of Succeeding month for a Tax Period.
5.Will there be any invoice matching in GSTR-3B?
No, all the details in GSTR-3B will be self declared in summary manner and the taxes will be paid based on the table 6 of GSTR-3B (refer to the Rules as available on the GST Council or CBEC website, applicable for GSTR-3B Form).
6.Will the Utilize cash/ITC functionality be available for discharging return related liabilities?
No, all the details in GSTR-3B will be declared in a consolidated manner by the taxpayer and the taxes will be paid based on the table 6 of GSTR-3B, after submitting the return (refer to the CGST/SGST Rules available on the GST council or CBEC website applicable for GSTR-3B Form).
7.What will happen if my declared liabilities in GSTR-3B are different from that of my GSTR-3 which I will file later?
Upon generation of GSTR-3, if liabilities are different from those declared in GSTR-3B, the system will update the delta (difference) between GSTR-3B and GSTR-3 automatically.
Note: In case of an upward revision of liabilities, you will be liable to pay differential tax along with interest on the (differential) amount.
8.Is filing of GSTR-3 mandatory even if there is no business in the particular tax period?
Like for filing of GSTR-1, 2 and 3, GSTR-3B is also mandatory to be filed by all normal and casual tax payers, even if there is no business in the particular tax period.
In this article we have included Frequently Asked Questions on Form GSTR-1 asked by our clients as well as some questions has been taken from Governments’ GST Portal
GSTR-2 is the details of inward supplies of goods or services to be furnished by registered taxpayer on a monthly basis. The GSTR-2 would be prepared by registered taxpayer by acting upon on auto-populated details from GSTR-1,5,6, 7,8 filed by the corresponding supplier/ Non-Resident taxable persons/ ISD/ Tax Deductor/ Tax Collector and by adding missing /other details as applicable. The registered taxpayer can avail Input Tax Credit (ITC) for eligible inward supplies.
Every registered person, other than an Input Service Distributor or a Non-Resident taxable person or a person paying tax under the provisions of section 10 (Composition taxable person) or section 51 (TDS) or section 52 (TCS), is required to file Form GSTR-2 (Statement of Inward Supplies), on a monthly basis, prepared on the basis of auto-populated details from the Form GSTR-1 of the suppliers after accepting, modifying, rejecting, or keep pending such data.
Receiver taxpayers can also add inward supplies and credit or debit notes received for supplies that are not declared by the supplier taxpayer in Form GSTR-1.
Recipient is also required to declare his claim of ITC on inward supplies in Form GSTR-2.
Form GSTR-2 needs to be filed even if there is no business activity (Nil Return) during a given tax period.
3. Is there any taxpayer who is exempt from filing Form GSTR-2?
Yes, the following taxpayers are exempt from filing Form GSTR-2:
4. By when do I need to file Form GSTR-2 for a given tax period? OR What is the due date for filing Form GSTR-2?
The due date for filing Form GSTR-2 is the 15th of the month succeeding the tax period but small taxpayers with a turnover up to 1.5 crore need to file GSTR-2 quarterly.
5. Can the date of filing of Form GSTR-2 be extended?
Yes, date of filing of Form GSTR-2 can be extended by the Board/Commissioner by notification.
6.Is there any late fee applicable on filing of Form GSTR-2 after due date? If yes, what are the charges?
Yes, a receiver tax payer is charged late fee for filing Form GSTR-2 after the due date.
Late fees payable is Rs 100/- for every day (as per CGST Act) during which such failure continues subject to maximum of Rs 5000/-, (fees as per SGST Act will be charged separately as per respective SGST Act).
7. What is the definition of inward supplies under GST?
The inward supplies include all inward supplies of goods and/ or services, including inward supplies of services and goods on which the tax is payable on reverse charge basis.8.
8. Under what circumstances can the details of inward supplies of month M in the Form GSTR-2 can be filed before the end of month M (before the end of the tax period)?
Normal taxpayers cannot file Form GSTR-2 before the due date of the filing of Form GSTR-1 of the current tax period.
However, following are the exception scenario for filing before due date:
However, taxpayer who has applied for cancellation/ surrender of registration would be allowed to file GSTR-2 only after confirmation of cancellation application.
9.What is the time limit up to which a taxpayer can claim ITC?
ITC can be claimed up to the due date of filing of the return of the tax period ending September of the subsequent financial year in which the original invoice/ debit note was issued or the annual return of the subsequent financial year is filed, whichever is earlier. If the invoice date is after this limitation period, credit is not allowable.
10.What are the pre-conditions for filing GSTR-2?
Pre-conditions for filing of GSTR-2 are:
11.What happens after Form GSTR-2 is filed?
After Form GSTR-2 is filed:
In this article we have covered frequently asked question on GSTR-1 asked by our clients as well as some questions has also been taken from Governments’ GST Portal.
1. What is GSTR-1?
GSTR-1 is a monthly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
2. Who is required to file the GSTR-1?
Every registered taxable person, other than an input service distributor/compounding taxpayer/TDS Deductor/TCS Collector is required to file GSTR-1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal.
3. Is GSTR-1 filing mandatory?
GSTR-1 needs to be filed even if there is no business activity (Nil Return) in the tax period.
4. What are the available modes of preparing GSTR-1?
GSTR-1 can be prepared using the following modes through:
A. Online entry on the GST Portal
B. Uploading of invoice and other GSTR-1 data using Returns Offline Tool
C. Using third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs)
5. What details have to be furnished in GSTR-1?
The following details of a tax period have to be furnished in GSTR-1:
a. Invoice level details of supplies to registered persons including those having UIN
b. Invoice level details of Inter- state supplies of invoice value greater than equal to INR 2,50,000 to unregistered persons (consumers)
c. Details of Credit/Debit Notes issued by the supplier against invoices
d. Details of export of goods and services including deemed exports (SEZ)
e. Summarised state level details of supplies to unregistered persons (consumers)
f. Summary Details of Advances received in relation to future supply and their adjustment
g. Details of any amendments effected to the reported information for either of the above categories.
h. Nil- rated, exempted, and non-GST supplies
i. HSN/SAC wise summary of outward supplies
6. Which type of registered taxpayers are not required to file the GSTR-1?
The following taxpayers are not required to file GSTR-1:
• Taxpayers under the Composition Scheme (Return to be filled by them in GSTR 4)
• Non-resident foreign tax payers (Return to be filled by them in GSTR 5)
• Online information database and access retrieval service provider (Return to be filled by them in GSTR 5A)
• Input Service Distributors (ISD) (Return to be filled by them in GSTR-6)
• Tax Deducted at Source (TDS) deductors (Return to be filled by them in GSTR 7)
• E-commerce operators deducting TCS (Return to be filled by them in GSTR 8)
7. What are the pre-requisites for filing GSTR-1?
Pre-requisites for filing GSTR-1 are:
a. The taxpayer should be a registered taxpayer and should have an active GSTIN during the tax period for which GSTR-1 has to be furnished.
b. The taxpayer should have valid login credentials (i.e., User ID and password) to login into GST Portal.
c. The taxpayer should have an active and non-expired/ revoked digital signature (DSC), in case the digital signature is mandatory
d. In case a taxpayer wants to use E-Sign, they must have a valid Aadhar number with access to the mobile number and e-mail id registered with Aadhar authority (UIDAI) as OTP will only be sent on the registered mobile number and e-mail id. In case the taxpayer has changed the mobile number and e-mail id, they must first update the same with UIDAI. For cancelled GSTINs, the taxpayers will have an option to file GSTR-1 for the period up to the date of cancellation.
e. In case taxpayer wants to use EVC, they must have access to the registered mobile number of the Primary Authorized Signatory
8. For which class of Taxpayers is DSC mandatory for filing returns?
DSC is mandatory in case of all Public & Private Limited Companies, Limited Liability Partnerships (LLPs), and Foreign Limited Liability Partnerships (FLLPs).
9. By when do I need to file the GSTR-1 for a given tax period? OR What is the due date for filing the GSTR-1?
For normal taxpayers due date to file GSTR-1 for a given tax period is 10th day of the succeeding month and small taxpayers with turnover up to 1.5 crore are required to file GSTR-1 quarterly.
10. How should the value of turnover to be in entered in the mandatory field on the landing page of GSTR-1?
The turnover value in Table 3 of GSTR-1 has to be entered manually for the first year as the information is not available with the GST system. From the second year of implementation of GST, the system will auto-calculate the turnover based on all the annual returns filed for all the GSTINs associated with a given PAN (PAN-based turnover). However, the turnover value will be editable and you will have the option to amend it.
11. What does the ‘Total Invoice Value’ column indicate in GSTR-1?
The ‘Total Invoice Value’ column in GSTR-1 is for the invoice value inclusive of taxes.
12. Will there be any validation on relationship between Invoice value and Taxable Value?
Taxable value is the value as per the provisions of GST law. There will be no validation that the invoice value is equivalent to taxable value plus the tax amount.
13. Can I enter details of Goods and Services in the same invoice?
Yes, you can enter details of Goods and Services in the same invoices.
14. What are B2B Supplies?
B2B Supply refers to supply transactions between registered taxable entities/persons (Business-to-Business supplies).
15. What is meant by B2C Supplies?
B2C Supply refers to supply transactions between a Registered Supplier and an Unregistered Buyer (Business-to-Consumer).
16. What are Debit Notes?
A Debit Note is a document issued against an invoice in cases where the original invoice was issued at a value lower than the actual value of goods and/or services provided. It can also be issued in case of post supply price negotiations. The difference amount is accounted for in the form of a Debit note
17. What are Credit Notes?
Credit Note is a document issued against an invoice in cases where invoice was issued at a value higher than the actual value of goods and/or services provided or the invoice value is reduced due to post supply negotiations. This may also happen when the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient.
18. When are Debit Notes to be reported in the return?
Debit Notes are to be reported in the return of the month in which they are issued by the supplier.
19. When are Credit Notes to be reported in the return?
Credit Notes are to be reported in the return of the month in which they are issued but not later than the return of the September month following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier.
20. Does a tax payer need to report the credit notes and debit notes of supplies to consumer separately?
No. In case of supplies to consumers are to be reported in a consolidated manner (intra-state supplies to consumer and inter-state supplies of invoice value less than INR 2.5 lakhs), the credit/debit notes are not required to be reported separately. Such supplies have to be reported in a consolidated manner net off the values of credit and debit notes.
21. In case of Receipt of advance by the Supplier from a Receiver, is the supplier liable to pay tax on such an advance amount?
Yes, Supplier is liable to pay tax on advances received from Receivers for the supply of goods and services and report the consolidated advance received details in month in which payment is received. The amount of advances to be reported in GSTR-1 is net off the amount for which invoices have already been issued and the value reported in the same return in other sections.
22. How is the tax paid on advance payments adjusted against the invoice(s) issued in the subsequent tax period(s)?
The taxpayer has to declare the advance that has to be adjusted in the tax period in which advance is received. Subsequently when invoice is issued,then taxpayer can
adjust the tax liability of the invoice issued of that tax period, in the GSTR-1 of that period. This can be shown in the advance adjustment table of GSTR-1.
23. Whether purchases from unregistered person, which are subject to reverse charge, for which the recipient issues a tax invoice, is required to be reported ?
All the purchases from unregistered person, which are subject to reverse charge, for which the recipients issues a tax invoice are to be reported in GSTR-2 (and not in GSTR-1).
24. Do I need to upload the invoice(s) details at the time of filing GSTR-1?
Taxpayers can upload invoice details any time during the tax period and not just at the time of filing of GSTR-1. For example, let’s take September 2017 as the tax period – the tax payer can upload invoices from 1st September to 10th October and after 15th October in case of late filing of GSTR-1.
25. Until when can changes be made to the uploaded invoice details?
Taxpayers can modify/delete invoices any number of times till they submit the GSTR-1 of that particular tax period. The uploaded invoice details are in a draft version, and can be changed irrespective of due date until the GSTR-1 is submitted.
26. What is the due date for the payment of monthly tax liabilities for normal taxpayers?
A normal taxpayer is required to discharge their return related liability at the time of filing of GSTR-3. The current due date for filing GSTR-3 is 20th of the succeeding month.
The taxable event in GST is supply of goods or services or both. Various taxable events like manufacture, sale, rendering of service, purchase, entry into a territory of state etc. have been done away with in favour of just one event i.e. supply. The constitution defines “Goods and Services Tax” as any tax on supply of goods, or services or both, except for taxes on the supply of the alcoholic liquor for human consumption. The Central and State governments will have simultaneous powers to levy the GST on Intra-State supply. However, the Parliament alone shall have exclusive power to make laws with respect to levy of Goods and Services Tax on Inter-State supply. The term, “supply” has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of following six parameters, which can be adopted to characterize a transaction as supply:
While these six parameters describe the concept of supply, there are a few exceptions to the requirement of supply being made for a consideration and in the course or furtherance of business. Any transaction involving supply of goods or services without consideration is not a supply, barring few exceptions, in which a transaction is deemed to be a supply even without consideration. Further, import of services for a consideration, whether or not in the course or furtherance of business is treated as supply.
Supply of Goods or Services or Both
Goods as well as services have been defined in the GST Law. The securities are excluded from the definition of goods as well as that of services. Money is also excluded from the definition of goods as well as services, however, activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged are included in services. Schedule II to the CGST Act, 2017 lists a few activities which are to be treated as supply of goods or supply of services. For instance, any transfer of title in goods would be a supply of goods, whereas any transfer of right in goods without transfer of title would be considered as services. Further Schedule III to the CGST Act, 2017 spells out activities which shall be treated as neither supply of goods nor supply of services or outside the scope of GST. This includes: 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 3. Sale of land and sale of building where the entire consideration has been received after completion certificate is issued or after its first occupation. Actionable claims are included in the definition of goods, however, Schedule III provides that actionable claims other than lottery, betting and gambling shall be neither goods nor services.
Supply for Consideration
Consideration has specifically been defined in the CGST Act, 2017. It can be in money or in kind. Any subsidy given by the Central Government or a State Government is not considered as consideration. It is immaterial whether the payment is made by the recipient or by any other person. A deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.
Further, when there is barter of goods of services, the same activity constitutes supply as well as a consideration. When a barber cuts hair in exchange for a painting, hair cut is a supply of services by the barber. It is a consideration for the painting received. However, there are exceptions to the requirement of ‘Consideration’ as a pre-condition for a supply to be called a supply as per GST. As per schedule to CGST Act, 2017, activities as mentioned below shall be treated as supply even if made without consideration:
Supply in the Course or Furtherance of Business
GST is essentially a tax only on commercial transactions. Hence, only those supplies that are in the course or furtherance of business qualify as supply under GST. Hence, any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act. Sale of goods or service even as a vocation is a supply under GST. Therefore, even if a famous politician paints paintings for charity and sells the paintings even as a one-time occurrence, the sale would constitute supply. However, there is one exception to this ‘Course or Furtherance of Business’ rule i.e., import of services for a consideration.
As per Section 22 of CGST ACT, 2017 Every Person shall be liable for registration under this Act in the State or Union Territory, other than special category states, from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupess:
Person making a taxable supply of goods or services or both in from a special category states shall be liable for registration if his aggregate turnover in a financial year exceeds ten lakh rupees.
” Special Category States ” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution currently following states falls under this category:
Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, & Uttarakhand.
Following persons shall be required to be registered under this Act compulsorily, irrespective of turnover limits provided above:
As per section 23 of CGST Act, 2017 following persons shall not be liable for registration;
(a) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
(b) An agriculturist, to the extent of supply of produce out of cultivation of land.
Yes, any person who wish to take advantage of Inpt Tax Credit i.e. tax paid by him on his purchases may get themselves registered under GST after registration all provisions of GST Law shall apply to them like other registered dealers For Example they have to collect tax and file returns etc.
Yes, but it can be cancelled after 1 year from date of registration.
No, a single registration is sufficient for a state, you may add multiple branches
Yes, separate GST registration is required for each state from where a taxable person is making supply of any goods or services or both.
Yes, You need to pay tax on supply of goods to branch in another state that is Integrated Goods & Service Tax and you may claim Input Tax Credit of the IGST paid when these goods are sold in that state.
No, GST Registration is online process you need to feel some information online on GSTN Portal and upload required documents and you will receive your registration certificate online without visiting GST office.
No, Govt. is not charging any fee for GST Registration.
Yes, return filling is mandatory you may file nil returns in this case.
Yes, you may amend your registration details any time subject to approval of concerned authority.
You may use Fastlegal online GST registration services at Rs. 2299/- , for which you just need to fill the form given below and upload required documents with the link provided in the form. Our experts will apply your registration on the day payment is received and you will get GST registration Certificate in 3-5 working days. You may talk to our experts if you have any doubts before apply for GST registration.
Document/information required for applying GST Registration:
