Revenue Secretary Dr. Hasmukh Adhia on 6th July chaired the first Goods and Services Tax (GST) Master Class, a series of sessions aiming to assist taxpayers and traders adapt better to the new tax regime. Addressing an array of topics, Adhia flagged off the first session clarifying the most commonly misunderstood norm of the GST, the query of which state to register from in case of inter-state trade.
“There has been confusion regarding inter-state trade. I would like to clarify that registration has to be done from the state where the goods are being sent from, not the state that is receiving the goods,” he said.
With regards to reverse taxation, Adhia clarified that in case of transport aggregators like Uber, Ola and so on, registration needs to be done by the company, and not by the taxi drivers individually. Also, electronic commerce operators will also have to register themselves.
However, agriculturalists and those dealing with the sale of items exempted from the GST are not obligated to register, Adhia clarified. Stressing on the importance of registration, Adhia asserted that the process can be done only using a PAN card, adding that only one registration number will be provided against a PAN card. “The registration rule of one number per pan card is not applicable in two cases.
One, if the business has multiple verticals. Two, if the operations are domestic and in Special Economic Zones (SEZ). Any modification of a business such as its name, address of business, addition or deletion of partners can be modified only by tax authorities,” he said.
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