The first 2 digits of the 15 digit GSTIN will represent the state code. For example: 27 for Maharashtra The next 10 digits will be the PAN of person or entity engaged in Business.

Any business whose turnover exceeds the threshold limit of Rs. 20 lakhs (Rs 10 lakhs for North Eastern and hill states) will have to register under GST. Businesses registered under any of the pre-GST laws: VAT, Excise/Service Tax have to register under GST by default. Apart from the normal taxpayer (as defined above), there are few special cases (as explained in section 3) that have to register for GST irrespective of their turnover

An entity liable to be registered under GST should apply for registration under GST within 30 days from the date on which the entity becomes liable to register for GST. Casual taxable persons and non-resident taxable persons are required to be registered under GST, prior to commencing business.

GST Registration is not mandatory for persons who

1. Supply agricultural produce from cultivation

2. Make only exempt supplies (Nil Rated or Non-Taxable supplies) of goods or services

3. Make supplies which are entirely covered under reverse charge.

Yes, a person can get registered voluntarily under GST in terms of sub-section (3) of section 25. All the provisions will apply to him as they apply to a registered person.

Aggregate turnover is the aggregate value of all taxable supplies, exempt supplies, export of goods or services or both and inter-State supplies of a person having same PAN. Aggregate turnover does not include CGST, SGST, IGST and GST cess.

For normal registered businesses:

Take input tax credit

Make interstate sales without restrictions

For Composition dealers:

Limited compliance

Less tax liability

High working capital

For businesses that voluntarily opt in for GST registration (Below Rs. 20 lakhs):

Take input tax credit

Make interstate sales without restrictions

Register on e-commerce websites

Have a competitive advantage compared to other businesses

An offender not paying tax or making short payments (genuine errors) has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000. The penalty will at 100% of the tax amount due when the offender has deliverately evaded paying taxes.

When the supply of goods and services takes place WITHIN the State (Intra-state), that is when the Supplier and the Consumer both are in the same state, two taxes will be levied. One part is levied by the State Government and the other is by Central Government. Hence the tax levied by the central government is known as Central GST.

State GST is the component of GST that will be collected by the state government on all items, both goods and services on intra-state trade.

When the supply of goods and services takes place BETWEEN two States (Inter-state), that is when the place of Supplier and the Consumer are in different states, Integrated GST is levied by the central government. In case of Inter State supply of Goods and Services only IGST will be applicable.

Any individual or entity that fulfils any of the following conditions is required to obtain GST Registration :

1. Having an annual aggregate turnover from operations in the state which is above the threshold limit of Rs. 20 Lakhs (Rs. 10 Lakhs for North-Eastern States)

2. Currently registered under any of the existing indirect tax regimes (VAT, Excise Laws, Service Tax Laws) irrespective of the threshold limit

3. Having operations in multiple states

4. Having multiple business verticals in one state

5. Making any Inter-State taxable supply

6. Casual taxable persons & Non-resident taxable persons

7. Required to pay tax under Reverse Charge

8. Required to deduct tax at source

9. Agents of a supplier

10. Input Service Distributor

11. Supplying goods or services through E-commerce Operator

12. E-commerce Operator/ Aggregator who supplies goods or services under its brand name

13. Supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person

No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.

Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.