FAQs on working with GST (Goods and Services TAX)

With GST nearing its implementation date, we attempt to answer some common questions relating to certain aspects of GST.

Q 1: Has the Government notified the tax rates for GST? What are the GST rates that are applicable to different products?
Ans: The GST Council has notified GST rates for certain goods and services. The GST rates that have been notified by the GST Council for different categories of goods and/or services are:

0% for exempted goods;
5% for essential commodities;
3% for jewellery including imitation jewellery
12% for merit goods;
18% standard rate; and
28% for demerit / sin goods. [Additional cess will be levied on certain specified goods].

Please reach out to your tax consultant or GST service provider for information on the rates applicable to your products or services. Additionally, amazon.in sellers are required to update their product category information with Amazon to continue selling upon implementation of GST.

Q 2: Currently I have VAT registration in two states. Should I obtain a GST registration in both the states?
Ans: Yes, if you are making supplies from both of the states. As mentioned in question number 2 in the FAQs on understanding GST¸ the GST registration needs to be obtained in every state from where the supply of goods originates.

Q 3: I started my business in state X under state X’s VAT laws. Now I moved to state Y and majority of my business is in state Y. I have been issued provisional GSTIN ID from state X. How can I get this moved to Y or alternatively obtain a primary GSTIN ID from state Y?
Ans: Ideally, the existing registration under state X needs to be migrated to GST registration in state X.
If registration for state Y has been obtained under VAT laws already, then the same should also be migrated to GST. If registration under VAT laws has not been obtained in state Y, then fresh registration under GST laws must be obtained.
If you have any questions in this regard, please contact your tax consultant or GST service provider.

Q 4: I am registered under state X's VAT laws and state Y's VAT laws. I have not received provisional GSTIN from both state X and Y. How do I get it?
Ans: You must approach the local VAT office of the respective states for obtaining the provisional GSTIN ID. Please reach out to your tax consultant or GST service provider for assistance in this regard.
You may also refer to the FAQs issued by the Government in this regard, available here.

Q 5: I heard that sellers will have to take GST registration in all states and file monthly returns in all states. Is that correct?
Ans: As per the GST law, the sellers are required to take GST registration in every such state from where their supplies are made.

Q 6: I am registered for VAT in state X. With GST, can I ship / send my goods from another state Y?
Ans: No. As per the GST law, if you want to ship items out of state Y, you should obtain the GSTIN from state Y, and the registration in state X cannot be used.

Q 7. If a person is operating in different states, with the same PAN number, can he operate with a single GST registration?
Ans: No. As per the GST laws, the sellers are required to take GST registration in every state from where they supply their goods.

Want to know more? learn more about the different types of GSTR forms.
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