GST Registration Guide for Registration, Transitional Provision by CA Ashish Kumar Agrawal


Dear Professional Colleagues,

Some of the characteristics of the GST Registration mechanism are:-

1.Single Pan based registration
2.Single return for SGST/UTGST, CGST & IGST
3.Per state single registration.
4.Online procedure (though after registration physical visits  can be made based on risk profile)
5.Separate registration procedure for a non-resident taxable  person, casual taxable person & person liable to deduct or  collect tax at source
6.Penalty for non-registration being Rs.10,000

Threshold Limit For Registration

Every supplier is required to register with the state if his aggregate turnover in a  financial year exceeds a certain threshold limit based upon the state’s category.

Aggregate Turnover

1.Aggregate Turnover has been defined to include all supplies made by a  taxable person whether on his own account or on behalf of principle.

2.Thus, an agent acting on behalf of his principle will also require taking registration if the threshold is breached.  Let us understand via an example

Cases Were Threshold Is Not Available

1. Inter-State supply of goods (PATNA to DELHI)

2. Casual Taxable Persons

3. Reverse Charge Liability

4. E-Commerce Operators

5. Input Service Distributors

6. Persons liable for TDS / TCS

7. A person providing OIDAR services from outside India to an unregistered person  in India

Persons Not Liable To Register


The following class of persons are not required to register for GST:-

1. Persons exclusively engaged in the business of supply of goods or services that are wholly exempt or not liable to tax.

2. Agriculturist, being defined as, an Individual or HUF, who undertakes cultivation of land by his own hand or under his own labour or under labour of his family or under his supervision or under the supervision of any member of the family.

3. Individual Advocates (including senior advocates) and sponsorship service providers (including players)

      *This exemption has been provided in the 16th meeting by the GST Council held on 11th of June, 2017.

Includes:-

  • Taxable supplies,
  • Exempt supplies,
  • Export, and
  • Interstate supplies made from same PAN.

Any supply made on his own account, or on behalf of all the principals.

Excludes:-

  • Value of inward supplies on which tax is payable under RCM
  • CGST/SGST/UTGST/IGST and cess.
  • Value of goods after completion of job work

    Structure of GST Taxpayer Identification Number (GSTIN)

  • In the GSTIN, the State Code as defined under the Indian Census 2011 would be adopted. In terms of the Indian Census 2011, each State has been allotted a unique two digit code e.g. “09” for the State of Uttar Pradesh and “27” for the State of Maharashtra.

  • 13th digit would be alpha-numeric (1-9 and then A-Z) and would be assigned depending on the number of registrations a legal entity (having the same PAN) has within one State. For example, a legal entity with single registration within a State would have “1” as the 13th digit of the GSTIN. If the same legal entity goes for a second registration for a second business vertical in the same State, the 13th digit of GSTIN assigned to this second entity would be ‘’2?.

TRANSITIONAL PROVISION

When should the application be made for registration?

The time limit for registration application depends upon the class of person making application, as described below;


Registration Procedure


GST REG-25

  • Every person, other than a person deducting tax at source or an Input Service Distributor, registered under an existing law and having a Permanent Account Number shall enrol on the Common Portal by validating his e-mail address and mobile number, either directly or through a Facilitation Centre notified by the Commissioner.
  • That person shall granted registration on the provisional basis and a certificate of registration in FORM GST REG-25 shall be issued.

1.*Deemed Registration:- If the application is not found to be defective in 03 working days or no further information is sought in 07  working days, then, the application is deemed to be accepted & GST  REG 06 is issued to the applicant in 03 working days after the expiry of the said period.

2.There is separate registration procedure for the non-resident taxable person, casual taxable person & person liable to deduct tax at source.

3.Every Registration Certificate issued in GST REG 06 will be digitally signed by the proper officer.

4.Every registered person should display his GSTIN on the name board at the principal place of business along with the additional place of business.

Multiple Registration In Single State

1.The Registration in GST is State-Centric. But if a business enterprise has different business verticals in the same state, then, it can apply for separate registration for each of its business vertical.

2.Business vertical has been defined as, a distinguishable component of an enterprise, supplying individual / related goods or services which are subject to different risks & reward factors.

3.The distinguishing clauses can be nature of goods/services, production processes, client base, regulatory environment & distribution network.

4.The procedure for registration is same as described above.

5.But once opted for registration of each business vertical separately, then,  none of the business vertical can pay tax under composition scheme.

6.Also, for transfer of goods or services in the same business group but,

different business verticals registered separately, GST would have to be paid.

Suo Motu Registration by Proper Officer


Casual & Non-Resident Taxable Person

1.Casual Taxable Person:- This has been defined as, a person who occasionally undertakes supply of goods/services / both in the course or furtherance of business, in a state / UT where he has no fixed place of business.

2.Non-Resident Taxable Person:- This has been defined as a person who occasionally undertakes supply of goods/services / both & has no fixed place of business/residence in India.

3.This has to submit registration application in GST REG 9, 5 days before the commencement of business. This person can make taxable supplies only &  only after the registration certificate in GST REG 06 has been granted.

4.Along with the registration application, such person will also be required to deposit advance tax based upon the estimated tax liability.

5.The registration granted would be effective for a period of maximum 90 days

only.

1.The registration can be extended for a further period of 90 days, but only after further payment of advance tax.

2.Non-Resident Taxable Persons would have to submit their Passport along with the application. Also, their application should be signed by an authorized signatory who should be a person resident in India &  holding a valid PAN.

3.Such person would be required to file monthly return by 20th of the next month. In case the registration period ends, then, the return should be filed within 7 days from the expiry of registration.

4.NIL return need not be filled by such person.

5.Refund, if any, would be paid to such person only after they have filed their returns & the registration ceases to continue.


Effective Date Of Registration

Class of Persons

Effective Date Of Registration

Applied in 30 days from the date of  becoming to liable for registration

Date on which the registration  liability arose

Not Applied within 30 days from the date of  becoming to liable for registration

Date of Application

Suo Motu Registration by Proper Officer

Date of order of Proper Officer

Other Cases

Date of Application

 

Amending Your Registration Details

1.Any change in details furnished at the time of registration must be submitted within 15 days from the date of such changes in Form GST REG-14.

2.Specific changes in Form GST REG-14 relating to the name of the business, partner details, managing committee, and so on, require approval from an officer. After verification, an approval order by the officer is sent in Form GST REG-15 to amend the details.

3.Changes in business details that result in a change of PAN number of the registered taxpayer require a fresh registration in Form GST REG-01.


AMENDMENT OF REGISTRATION  CERTIFICATE

 As per Section 20, an amendment to registration certificate can be made upon submission of the prescribed document within the prescribed time.

CANCELLATION OF REGISTRATION

Registration granted can be cancelled when:

  • The business is discontinued or transfer or in case of death of proprietor.
  • Change in constitution of business.
  • When the assessee is No longer liable to registration i.e. he now deals in wholly exempted or non-taxable goods/services or his turnover limit is below the limit prescribed as per Section 19.
  • Amalgamation of the taxable person with other legal entities or de-merger.

    Applying for Cancellation of Registration

i.A registered taxable person seeking cancellation of registration should submit Form GST REG-16 along with details of closing stock and other relevant documents.

ii.Within 7 days, a notice in Form GST REG-17 is issued to the taxable person to show cause with the reason for such cancellation.

iii.After verification and approval by an officer, cancellation order in  Form GST REG-19 is issued within 30 days from the date of receipt of Form GST REG-17 or date of show cause.

CANCELLATION OF REGISTRATION BY THE PROPER OFFICER

The proper officer may cancel the registration when:

  • The assessee contravenes such provisions of Act or Rules as may be prescribed.
  • Person opting composition scheme is not furnishing the return for 3 consecutive periods.
  • Return is not furnished by the assessee for a continuous period of 6 months.
  • In case of Voluntary registration, if the business does not commence within 6 months
  • Registration is obtained by means of fraud, willful misstatement or suppression of fraud.

Revoking a Cancelled Registration

1.In case the registration is cancelled by an officer, a taxable person can apply for revocation by submitting Form GST REG-21 within 30 days from the date of cancellation order.

2.If the officer requires additional details or clarification, Form GST REG-03 is issued within 3 working days.

3.The taxable person then needs to respond by providing requisite details in Form GST REG-04 (within 7 working days).

4.If the officer is satisfied, the cancellation is revoked by issuing an order in Form GST REG-22 within 30 days from the date of such application.

5.If the officer is not satisfied, the revocation application is rejected in Form GST REG-05. Prior to this rejection, the taxable person will be issued a show cause notice in Form GST REG-23 and hearing.

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