Importer Exporter Code (IEC Code) License
LET'S TALK
Request a Free Quote
Importer Exporter Code (IEC Code) License
ADVANTAGES OF GST REGISTRATION
- GST Registration eliminates and eradicates the piling effect of the tax.
- Simple and online GST Registration process.
- GST registration for normal taxpayers and GST registration under composition scheme for small businesses help the unorganised sectors.
- The number of compliances under GST registration is lesser than the previous tax structure.
- Through the introduction of the E-way bill through the GST registration portal, improves efficiency in logistics
- The prices are not reduced after reducing the GST rates notified by the Central Board of Indirect Taxes and customs (CBIC).
- GST registration certificate and return copy can be obtained through GST portal by downloading the document as many time required.
- GST is a comprehensive indirect tax built to bring the total indirect taxes under one umbrella, hence reduces the total tax burden.
GST Registration FAQ's
What is a GST certificate in India?
A Goods and Services Tax (GST) certificate is a document issued by the Indian government that certifies that a business is registered with the Goods and Services Tax (GST) system. It is a unique identification number that is used to identify a business for taxation purposes in India.
Who needs GST certificate?
Any business that is registered for GST with the Indian government must have a GST certificate. This applies to both online and offline businesses.
Is GST certificate compulsory?
Yes, in India, businesses must obtain a GST certificate in order to be registered for GST. Without a GST certificate, businesses will not be able to charge GST on the goods and services they sell.
What is the minimum limit for GST registration?
Businesses with an annual turnover of more than Rs. 40 lakhs are required to register for GST. However, this limit is lower for businesses in certain special category states, such as Arunachal Pradesh, Manipur, and Nagaland. Also, there are different rules for businesses involved in e-commerce, which may have to register for GST regardless of their turnover.
Read our article to find more details on turnover limit for GST Registration.
Read our article to find more details on turnover limit for GST Registration.
Can a person with no GST registration collect GST?
No, only persons registered under GST are allowed to collect GST from the customers. A person not registered under GST cannot even claim the input tax credit on the GST paid.
What is an E-way bill?
An E-way bill is an electronic document which serves as an evidence to the movement of goods having a value of more than Rs. 50,000. It available to a supplier or an individual transporting goods. It has two components; Part A, with details such a GSTIN of the supplier and recipient, place of delivery, value of goods, HSN code, reason for transportation and part B, with details of the vehicle and transport documents.
What are the benefits of an Eway bill?
It is a wholly digital interface that eliminates the need for state boundary checks. It will facilitate faster movement of goods and improve the turnaround time of trucks thus reducing costs for the supplier.
When should an e-way bill be generated?
As per rule 138 of the CGST Rules, 2017, an e-way bill has to be generated prior to the commencement of the transport of goods.
Is it mandatory to generate an e-way bill?
It is mandatory to generate E Waybill in all cases wherein the value of consignment is more than Rs. 50,000. However, it is not necessary to generate one wherein the goods are being transported by a non- motorized conveyance or if they are being transported from the port, airport, air cargo complex, and land customs station for clearance by customs.
What is the penalty for not generating an E-way bill?
Any taxable person who transports any goods without the cover of specified documents (e-way bill is one of the specified documents) shall be liable to pay a penalty of Rs. 10,000 or the amount of tax sought to be evaded (whichever is higher).
What is a Composition scheme?
Small businesses registered under the GST composition scheme can pay GST at a fixed rate of turnover every quarter and file quarterly GST returns. Composition levy would generally be related to small taxpayers who are supplying goods and services or both to the end consumer with a lower turnover.
What are the eligibility criteria?
Any existing taxpayer whose annual turnover did not cross the Rs.1.5 crore threshold in the preceding financial year. However, service providers with the exception of restaurants and caterers are not eligible, neither are casual taxable persons nor non-resident Indians.
Can Input tax credit be claimed under the composition scheme?
No input tax credit cannot be claimed by a dealer opting for a composition scheme as he is out of the credit chain. He cannot take credit for his input supplies.
How long will the scheme be valid?
The validity of the composition scheme will depend upon the option exercised by a taxable person as long as all the conditions are fulfilled as specified in the law. However, individuals who are eligible for the scheme can calso hoose to opt-out of it by simply filing an application
How will the aggregate turnover be computed?
It will be computed on an all-India basis and will include the value of all taxable supplies. It would exclude inward supplies under reverse charge as well as central, state/union territory and Integrated taxes and cess.
What is inter-state supply?
Inter-state supply of goods or service is when the supply location is a different state from the delivery location. In addition, the inter-state supply applies to the supply of goods or services by an SEZ unit or the export of goods or services.
What is intra-state supply?
An intra-state supply of goods or services applies when the place of supply is in the same state as the location of the supplier. Intra-state supply does not include the supply of goods/services to SEZ units or developers, imports, or exports.
What is SGST?
As per the SGST Act, the State GST or SGST applies to intra-state supplies of goods and services. It is administered by the respective state government. SGST liability can be set off against SGST or IGST input tax credit only.
What is CGST?
Central GST or CGST would be levied under the CGST Act on the intra-state supplies of goods and services. Hence in the case of intra-state supplies of goods and services, both the central and state government would combine their levies with an appropriate revenue sharing agreement between them.
What is IGST?
Integrated GST or IGST is the tax levied under the IGST Act on the supply of any goods and services in the course of inter-state trade across India. Further, IGST would include any supply of goods and services in the course of import into India and the export of goods and services from India.
What is the deadline for getting registered under GST?
An entity liable to be registered under GST should apply for registration within 30 days of meeting the criteria. Casual taxable persons and non-resident taxable persons are required to be registered under GST prior to commencing business.
Who is the primary authorized signatory?
The primary authorized signatory is the person who is primarily responsible to undertake tasks on the GST portal on behalf of the taxpayer. It could be the promotion of the business or any other trustworthy person nominated by the promoters of the business.
Is PAN mandatory for obtaining GST registration?
Yes. PAN is mandatory for obtaining GST registration. In the case of proprietorship, the PAN of the proprietor can be used. In the case of LLP or Company or Trust or other types of a legal entity, PAN must first be obtained for the entity. However, PAN is not mandatory for the GST registration of foreigners and foreign companies. For non-resident taxable persons, GSTIN with a fixed expiry date will be provided based on the other documents provided to prove existence.
What is the validity of GST registration?
GST registration does not have an expiry date. Hence, it will be valid until it’s cancelled, surrendered or suspended.Only GST registration for non-resident taxable persons and casual taxable persons have a validity period that is fixed by the authorities while issuing the GST registration certificate.
How to apply for GST number?
Click on the “Register Now” option on the official GST website. Select the appropriate registration form from the list and fill in the relevant details and submit. Once the form is submitted, the GST number will be issued.
For more details on how to apply for GST number, refer to our article.
For more details on how to apply for GST number, refer to our article.
Who is eligible for GST registration?
Any business that supplies taxable goods and services and whose turnover exceeds the GST registration threshold, which is currently set at Rs. 40 lakhs, must register for GST. Other businesses eligible for GST registration include those engaged in e-commerce activities, inter-state supply of goods, and providing services to someone in a different state.
Refer to this article to learn more about the GST eligibility criteria.
Refer to this article to learn more about the GST eligibility criteria.
What are the fees for GST registration?
Using the GST Registration Portal to register a business is free of charge. The entire procedure is free and conducted online.
Click here for more details regarding GST Registration fees.
Click here for more details regarding GST Registration fees.
What is compulsory registration under GST?
Compulsory registration under GST means that any business entity that is supplying taxable goods or services and whose turnover exceeds the threshold limit as prescribed by the government must obtain a GST registration.
What is the limit for GST registration?
The threshold limit for GST registration is Rs. 40 lakhs for most states in India. However, some special category states have a lower threshold limit of Rs. 10 lakhs.
What is the fees of GST registration?
The process of GST registration is free of cost on the official GST Portal.
or Import to India. Unless specifically exempted, any person shall make no export or import without obtaining an IEC. For services exports, however, IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy. Consequent to the introduction of GST, IEC being issued is the same as the PAN of the Firm. However, the IEC will still be separately published by DGFT based on an application. This article looks at the procedure for making an IE Code application in detail.
Import Export Code (IE Code)
Import & Export Code is to be obtained by the business entity for import into or export from India. Import & Export Code is popularly known as the IEC number. Import & Export Code is a ten-digit unique number issued by the Directorate General of Foreign Trade (DGFT).
IEC registration certificate is mandatory for a business involved in import and export. Hence, before initiating an import of goods into India, an importer must ensure that the importing entity has GST registration and IE code – both of which are required to clear customs.
If an importer does not have both IE code and GST Registration, the goods will be stuck at the port and start incurring demurrage charges or could be destroyed.
Importance of Import Export Code
Businesses have a great option to enter the international market with the export and import of the products and the services they are involved in. The IE code is an essential requirement while entering the global market as it supports the growth and development of the business to a certain extent. There are various advantages of getting an Import Export Code. Here we have listed a few of them:
Validity of IE Code
As mentioned above, IE Code registration is permanent and valid for a lifetime. Hence, there will be no hassles with updating, filing, and renewing the IEC registration. It is valid till the business exists or the registration is not revoked or surrendered. Further, unlike tax registrations like GST registration or PF registration, the importer or exporter does not require to file any filings or follow any other compliance requirements like annual filing.
As IE code registration is one-time and requires no additional compliance, it is recommended for all exporters & importers to obtain IE code after incorporation.
Nature of the Firm obtaining an IEC
The nature of the Firm obtaining an IEC may be any of the follows:
Pre-Requisites for Applying for IEC
Note: These details will be validated with the Income Tax Department site.
Documents required for IEC Code registration
The list of scanned documents required for IEC Registration is listed as follows:
Note: In case the address proof is not in the Name of the applicant firm, a no objection certificate (NOC) by the firm premises owner in favor of the Firm, along with the address proof, is to be submitted as a single PDF document.
Procedure to submit IE Code Application
The procedure to get the Importer Exporter Code Certificate is explained in detail below:
Step1: Visit the official DGFT website. Click on the ‘Services’ tab on the homepage and Select the ‘IEC Profile Management’ option from the drop-down list.
Step2: A new page will open. Click on the ‘Apply for IEC’ option on the Page.
Step3: Click on the ‘Register’ option. Enter the required details and click on the ‘Sent OTP’ button.
Step4: Enter the OTP and click on the ‘Register’ button.
Step5: Upon successfully validating the OTP, the User will receive a notification containing the temporary password, which can change after logging into the DGFT website.
Step6: After registering on the DGFT website, log in to the website by entering the user name and password.
Step7: Post login, click on “Apply for IEC” on the Dashboard. Click on the “Start Fresh Application” button or the “Proceed with Existing Application” button if the User has already saved a draft application.
Step8: Fill out the application form (ANF 2A format), and Enter the details in the General Information Section:
Step9: Under the declaration, accept the terms and conditions by clicking on the check box.
Step10: Check the Application Summary and click on the Sign button to sign the Application using a digital signature certificate or Aadhaar.
Note: These details will be verified in real-time from the CBDT database.
Step11: Confirm and proceed to make the payment against the Application.
Step12: After Successful Payment, the Page shall be redirected to the DGFT Website, and the receipt shall be displayed; the User can also download the ticket.
Get Importer Exporter Code Certificate
The User shall receive the IEC Certificate in the email (used while applying for IEC). If required, the User can download the IEC Certificate after login into the DGFT and using the “Print Certificate” feature in “Manage IEC.”
The IEC shall be transmitted to CBIC, and the transmission status can be seen by Navigating to “My IEC” and checking the IEC Status bar with “CBIC Transmission Status.”
The Import Export Code is a primary document that is necessary for commencing Import-export activities. For exporting or importing any goods or services the IE code is to be obtained.IEC has numerous benefits for the growth of the business. Certainly, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.