Question 1

What is the GSTIN and what does the 15-digit number mean?

Accepted Answer

GSTIN stands for Goods and Services Tax Identification Number. Each GSTIN is 15 characters: the first 2 digits are the state code (e.g., 33 for Tamil Nadu, 29 for Karnataka, 36 for Telangana, 07 for Delhi); the next 10 characters are your PAN; the 13th character is the entity code for businesses with multiple registrations in the same state; the 14th is always 'Z'; and the 15th is a check digit. Each state registration produces a distinct GSTIN. Your GSTIN must appear on every tax invoice you issue.

Question 2

I run an online store selling only within Tamil Nadu. My turnover is ₹35 lakh. Am I required to register?

Accepted Answer

If your aggregate turnover is below ₹40 lakh for goods, you are supplying intra-state only, and you are not selling through an e-commerce operator — registration is not mandatory. However: if you are listed on Amazon, Flipkart, Meesho, or any marketplace, GST registration is mandatory regardless of turnover. E-commerce sellers are in the mandatory registration category under Section 24 of the CGST Act. The threshold exemption does not apply to them.

Question 3

Can I have a single GST registration for my business that operates in Chennai and Bangalore?

Accepted Answer

No. GST is state-specific. Tamil Nadu operations require a Tamil Nadu GSTIN (state code 33). Karnataka operations require a Karnataka GSTIN (state code 29). These are separate registrations on the GST portal with separate returns, separate ITC ledgers, and separate officer jurisdictions. You cannot consolidate them. The only exception is the Input Service Distributor (ISD) mechanism — but even that requires a registered ISD entity in each state.

Question 4

What is the difference between the CGST, SGST, and IGST lines on my GST invoice?

Accepted Answer

GST on intra-state supply is split equally between Central GST (CGST) and State GST (SGST) — each at half the applicable rate. So an 18% GST supply shows 9% CGST + 9% SGST. GST on inter-state supply is charged as a single Integrated GST (IGST) at the full rate — 18% IGST in this example. The destination state's government receives its share of the IGST through a settlement mechanism. This distinction determines which GSTIN appears on the invoice and which ledger the credit flows into for the recipient.

Question 5

What happens if I cross the GST threshold mid-year? When exactly must I register?

Accepted Answer

Registration must be applied for within 30 days of becoming liable — i.e., within 30 days of the date your aggregate turnover crossed the applicable threshold. Supplies made after the liability date but before the GSTIN is issued must still be accounted for in your first return — the effective date of registration relates back to the date liability arose. Registering late — after the 30-day window — exposes you to a penalty of ₹10,000 or the amount of tax evaded, whichever is higher.

Question 6

Is GST TDS applicable to every transaction I receive? My customer told me they will deduct GST TDS.

Accepted Answer

No. GST TDS under Section 51 of the CGST Act applies only to specified deductors — Central Government, State Governments, local authorities, and government bodies notified for this purpose — when the total value of a single contract or supply exceeds ₹2.5 lakh. Private companies, individuals, and general businesses are not GST TDS deductors. If your customer is a government entity or public-sector undertaking, they deduct 2% GST TDS and issue Form GSTR-7. This credit appears in your GSTR-2B and can be claimed in your returns.

Question 7

What is the Composition Scheme under GST — and who should consider it?

Accepted Answer

The Composition Scheme allows small businesses with aggregate turnover up to ₹1.5 crore (₹75 lakh for certain special-category states) to pay GST at a flat percentage of turnover — 1% for traders, 5% for restaurants, 6% for service providers — instead of tracking input-output at transaction level. Composition dealers cannot charge GST on their invoices, cannot claim input tax credit, and cannot make inter-state supplies. The scheme is genuinely beneficial only for businesses with low input costs, entirely local customer base, and customers who do not require tax invoices (i.e., primarily B2C businesses).

Question 8

My GST application was rejected. What do I do — and can I apply again?

Accepted Answer

Rejection of REG-01 (via Form REG-05) means the application is permanently closed — it cannot be appealed or reactivated. You must file a fresh REG-01 application. However, before reapplying, the rejection reason must be understood and corrected — whether a document mismatch, an address proof issue, a constitution mismatch, or an officer query (REG-03) that was not responded to in time. Reapplying without fixing the root cause produces the same result.

Question 9

Can I claim input tax credit on my purchases before I received my GSTIN?

Accepted Answer

Section 18(1)(a) allows a newly registered person to claim ITC on stock held on the date immediately preceding the date of registration — provided those goods are used for taxable supplies and the invoices are available. ITC on services or capital goods held prior to registration is not available as opening stock ITC. The claim must be made in Form GST ITC-01 within 30 days of the date of registration.

Question 10

Does a proprietor or partnership firm need a DSC to register for GST?

Accepted Answer

A Digital Signature Certificate (DSC) is not mandatory for proprietorships and partnership firms registering under GST — they can authenticate using Aadhaar-based e-Sign or EVC (Electronic Verification Code) via OTP. However, companies and LLPs are required to use a Class 3 DSC for filing REG-01, as these entities cannot use Aadhaar OTP authentication for GST filings. A company or LLP registering for GST without a DSC of the authorised signatory will be blocked at the submission stage.

Question 11

What is the difference between 'aggregate turnover' and 'taxable turnover' for threshold purposes?

Accepted Answer

Aggregate turnover (for determining registration threshold) includes all taxable supplies, all exempt supplies, all exports, and all inter-state supplies made by a person having the same PAN — across all business verticals and all states — but excludes the GST tax component itself, inward supplies on which reverse charge is paid, and value of agent-supplied goods. Taxable turnover (for computing tax) excludes exempt supplies. The threshold test uses aggregate turnover — meaning even a business that supplies only exempt goods may need to register if their aggregate is above threshold and they make any inter-state or mandatory-category supply.

Question 12

How long does GST registration take — and what can slow it down?

Accepted Answer

From complete document submission to GSTIN receipt: typically 7–15 working days. If the application is flagged for field verification (common for new business addresses or certain business categories), it can extend to 30 days. Delays arise from: (a) officer query under REG-03 that must be answered within 7 working days else the application is rejected; (b) physical verification of premises ordered under REG-30; (c) Aadhaar authentication failure if the mobile number is not linked; or (d) PAN-Aadhaar name mismatch. Applications with complete, verified documents and correct information are processed fastest.

Question 13

What happens to my GST registration if I do not file returns?

Accepted Answer

A registered person who fails to file returns for 6 consecutive months (for monthly filers) or 3 consecutive quarters (for quarterly filers) is liable for cancellation of registration by the GST officer under Section 29. The officer issues a SCN (Show Cause Notice) first — Form REG-17. If the registrant does not respond, the GSTIN is suspended (Form REG-31) and then cancelled (Form REG-19). A cancelled GSTIN cannot issue valid tax invoices — any invoice issued under a cancelled GSTIN gives no ITC to the recipient, exposing both parties to compliance risk.

Question 14

My business is in Dubai and I want to supply software services to Indian clients. Do I need GST registration in India?

Accepted Answer

Non-resident taxable persons making taxable supplies in India must register under Section 24 of the CGST Act — regardless of turnover. For a Dubai-based entity supplying services to Indian clients, the place of supply rules under the IGST Act determine whether the supply is an import of services by the Indian recipient (in which case the Indian recipient pays tax under reverse charge) or a direct supply requiring the overseas entity to register. The analysis depends on whether the supply is B2B or B2C, whether the supplier has a fixed establishment in India, and the nature of the service. This is a specialist area requiring careful FEMA and GST analysis.

Feature	Regular GST Registration	Composition Scheme	Voluntary Registration (below threshold)
Eligibility	Any taxable person above threshold or in mandatory category	Aggregate turnover ≤₹1.5 crore (₹75L for some states); ≤₹50L for service providers	Any business below threshold that chooses to register voluntarily
Inter-state supply permitted	Yes — unlimited	No — intra-state only	No — same as composition if below threshold
Input tax credit (ITC) available	Yes — full ITC on purchases	No — cannot claim ITC	Yes — full ITC on purchases
Tax invoice issuance	Yes — charge GST on taxable supplies	No — issue only Bill of Supply, no GST charged	Yes — charge GST on taxable supplies
Returns to be filed	GSTR-1 (monthly/quarterly) + GSTR-3B (monthly/quarterly)	CMP-08 quarterly + GSTR-4 annually	GSTR-1 + GSTR-3B (same as regular)
Tax rate payable	Standard GST rate (5%, 12%, 18%, 28%)	1% (traders), 5% (restaurants), 6% (service providers) on turnover	Standard GST rate
E-commerce operators allowed	Yes	No — composition dealers cannot supply through e-commerce	Yes
Best suited for	Businesses with significant input purchases; inter-state; e-commerce; B2B	Small retailers and local service providers with low input costs and local customer base	Startups below threshold who need GST invoices for corporate clients or claim ITC on capital purchases

#	Stage & What PNPC Does	CA Advice Portals Never Give	Timeline
1	Pre-Registration Advisory — Assess threshold, category, and scheme	We ask what portals never ask: Is any supply inter-state? Are you on an e-commerce platform? Do you have multiple business locations? Are your supplies all intra-state? What is your mix of goods vs services? These answers determine whether registration is mandatory or optional, which scheme applies, in which states you need registrations, and whether the Composition Scheme is actually better than Regular. Getting this wrong means correcting it later — with penalty risk.	Day 1
2	GSTIN Eligibility and Jurisdiction Mapping	For businesses with locations in multiple states, every state is a separate registration — each with its own GSTIN, its own return cycle, its own officer jurisdiction. PNPC maps every taxable supply to the correct state of registration before REG-01 is filed. We have seen businesses register only in their home state and face show-cause notices for unregistered inter-state supply 18 months later.	Day 1–2
3	Document Preparation — Complete and verified package	Document errors are the primary cause of REG-01 rejection or officer queries. The constitution of the business must match exactly between the PAN, the Aadhaar, and the supporting documents. Address proof must be less than 2 months old. Where a rented premises is used, both the lease agreement and the NOC from the owner are required — a lease alone is not accepted.	Day 2–3
4	REG-01 Filing and ARN Generation	PNPC files the application with exact category classification, correct business activity description, and appropriate HSN/SAC codes pre-selected for your principal supply. These choices affect which return form applies and which e-invoice threshold rules apply to you. A generic portal submits whatever category you select — often the wrong one.	Day 3–4 — ARN issued immediately on submission
5	Officer Processing — Query response and follow-up	The GST officer may raise a REG-03 query within 7 working days. Query responses must be filed via REG-04 within 7 working days of the query, or the application is rejected. PNPC monitors the ARN status daily and responds to any query within 24 hours of receipt. First-application rejection requires a fresh REG-01 filing and restarts the clock.	Day 7–15 — GSTIN typically issued within 7–15 working days of complete application
6	GSTIN Activation and Setup	Receipt of the GSTIN is not the end. PNPC activates the GST portal access for filing, links your accounting system to the GSTIN, sets up your first return calendar with due dates flagged, and explains the e-invoice threshold applicable to your business. We also advise on HSN/SAC code mapping for your product/service lines — mandatory for invoices above ₹5 crore.	Day 15–20 — GSTIN operational
7	Return Calendar and Compliance Onboarding	Your first GSTR-1 and GSTR-3B are due within 30–40 days of registration. PNPC sets up your accounting for GST compliance from the first invoice — matching GSTR-1 to GSTR-3B to GSTR-2B to avoid ITC mismatches. ITC mismatches are the most common trigger for GST notices. Setting up the discipline from Day 1 prevents them.	Month 1 of registration — PNPC onboards you proactively

Phase	Triggered By	PNPC CA Guidance	Risk If Ignored
Registration (Day 1–20)	Business start or threshold crossed	Advisory on scheme, state registrations, correct HSN/SAC, authorised signatory setup, document verification before REG-01 is filed.	Wrong scheme; missed mandatory category; registration in wrong state; ITC blocked from first invoice.
First Return Month	30–40 days after GSTIN	First GSTR-1 and GSTR-3B setup, accounting reconciliation, GSTR-2B review, ITC matching protocol established.	ITC mismatches in Month 1 carry through every subsequent month. Errors compound.
Ongoing Return Compliance	Monthly or quarterly cycle	GSTR-1 filed by 11th, GSTR-3B by 20th, GSTR-2B reconciled every period. QRMP assessment at every ₹5 crore threshold check.	Late fee ₹50/day (regular) + 18% p.a. interest on delayed tax payment. ITC reversal if supplier defaults.
Annual Return (GSTR-9)	31 December following FY end	GSTR-9 reconciles monthly data against books. PNPC reviews all differences before filing — mismatches found at this stage indicate return errors to be corrected.	Unfiled GSTR-9 triggers auto-notices. Unreconciled differences between GSTR-1/3B and books invite audit.
GST Audit / Scrutiny	Officer selection or turnover trigger	Representation before GST officer. Documents collated. ITC claims substantiated. Liability quantified and minimised through proper technical submissions.	Unrepresented assessees often concede valid ITC claims or accept inflated demand. Expert representation is the only defence.
Amendment / New State	New branch or new activity	REG-14 amendment within 15 days of change. New-state registration application prepared. Correct jurisdiction mapping. Retrospective liability assessment.	Operating from a new state without registration constitutes unregistered inter-state supply — penalty equal to tax plus 100% of tax.
Cancellation	Business ceases or falls below threshold	REG-16 application filed after final return. ITC reversal computed on closing stock and capital goods. Bank account unlinking coordinated.	Active GSTIN after cessation continues accruing late fees for unfiled returns even if no business is done.

Feature	Online GST Portal / Self-Filing	PNPC Global
Scheme Selection	Picks whatever the applicant selects	Runs composition vs regular arithmetic; maps mandatory categories; advises correct scheme for your business model
State Mapping	Single-state application	Maps all states of operation; flags inter-state liability; files separate registrations per state
Document Verification	Submits whatever is uploaded	Pre-filing verification of PAN-Aadhaar match, address proof age, constitution documents — prevents rejection
HSN/SAC Classification	Generic or self-selected codes	Correct HSN/SAC codes mapped to your actual product/service lines — affects invoice compliance and return matching
Officer Query Response	Left to the applicant	Monitored daily; REG-03 responded within 24 hours to prevent rejection from non-response
Post-Registration Setup	Application filed and closed	Return calendar, accounting setup, GSTR-2B reconciliation protocol, e-invoice applicability check
Ongoing Return Filing	Not included	Monthly/quarterly GSTR-1 + GSTR-3B + GSTR-9 as part of annual retainer
Multi-Office Coordination (India + UAE)	Not available	Single engagement covers India registrations and UAE VAT/CT advisory from Chennai + Dubai offices

GST Registration (Regular, Casual & Non-Resident Taxable Persons)

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