Registration under GST and Migration of Existing Taxpayer to GST by CS Ridhima Pareek


As per Section 22 of the CGST/SGST Act 2017, every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to register himself in the State or the Union territory of Delhi or Puducherry from where he makes the taxable supply.
In case of eleven special category states (as mentioned in Art.279A(4)(g) of the Constitution of India), this threshold limit for registration liability is ten lakh rupees.
 
Besides, Section 24 of the Act mentions certain categories of suppliers, who shall be liable to take registration even if their aggregate turnover is below the said threshold limit of 20 lakh rupees.

On the other hand, as per Section 23 of the Act, an agriculturist in respect of supply of his agricultural produce; as also any person exclusively making supply of non-taxable or wholly exempted goods and/or services under GST law will not be liable for registration

Each taxpayer will be allotted a state-wise Permanent Account Number (PAN) based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed. A person who is not liable to be registered under section 22 may get himself voluntarily registered, and all the provisions of this Act, as are applicable to a registered taxable person, shall apply to such persons.

Registration would be granted to persons as defined under Income-tax Act, 1961 as per which persons includes:

  • an individual
  • an HUF
  • a company registered under the Companies Act
  • a firm
  • an association of persons (‘AOP’) or a body corporate of individuals whether incorporated or not
  • a local authority
  • every artificial person, not falling in any of the above categories

 

MIGRATION OF EXISTING TAXPAYER TO GST

GSTN shall migrate all such assesses/dealers to the GSTN network and shall issue a provisional registration certificate with GSTIN number on the appointed day, which after due verification by the departmental officers within six months, will be converted into final registration certificate. For converting the provisional registration to final registration the registrants will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of the provisional GSTIN number. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have their businesses.

Procedure for applying for provisional registration is as follows : 

Step 1 : Get provisional ID and password from State VAT Department : To begin with, the State Department will be communicating the provisional ID and password to taxpayers registered with VAT department. It can be collected from http://dvat.gov.in. GST enrolment provisional ID would be of 15 digits – State wise PAN based 15 digits CSTIN and the structure is as under:

STATE CODE

 

 

 

 

 

 

 

PERMANENT ACCOUNT NUMBER

(PAN)                                                      

ENTITY NUMBER OF THE SAME PAN HOLDER IN A STATE

ALPHABET ‘Z’ BY DEFAULT

CHECK SUM DIGIT

2

2

A

A

A

A

A

0

0

0

0

0

                1  

Z

5

                             

 

Information required for registration with GST portal :

  1. Provisional ID received from State/Central authorities
  2. Provisional ID received from State/Central authorities
  3. Valid email address
  4. Valid Mobile number
  5. Valid Mobile number

EFFECTIVE DATE OF REGISTRATION

Where the application for registration has been submitted within 30 days from the date on which the person becomes liable to register, the effective date of registration shall be the date on which he became liable for registration.

Where the applicant has submitted an application for registration after 30 days from the date of becoming liable to register, the effective date of registration shall be the date registration is granted. 

In the event of a person holding the registration voluntarily while being inside the threshold exemption limit for paying tax, the effective date of registration shall be the date of the order of enrolment.

 DOCUMENTARY REQUIREMENTS FOR GST REGISTRATION

INDIVIDUAL DOCUMENTS

 

·PAN card and ID proof

·Copy of Cancelled cheque or bank statement.

Registered Office documents

 

·Copy of electricity bill/landline bill,  water Bill

·Copy of electricity bill/landline bill,  water Bill

Documents required for Private Limited Company/Public Company/One person company

 

1. PAN card of the company

2. Registration Certificate of the company

3. Memorandum of Association (MOA) /Articles of Association (AOA)

4. Copy of Bank Statement

5. Copy of Board resolution

 

Director related documents

 
PAN and ID proof of directors


Partnership documents


1. PAN card of the Partnership

2. Partnership Deed

3. Copy of Bank Statement

Registered Office documents

 


1. Copy of electricity bill/landline bill,  water Bill

2. Rent agreement (in case premises are rented)


Photographs (wherever specified in the Application Form)

Proprietary Concern

Proprietor

Partnership Firm / LLP

Managing/Authorized/Designated Partners (personal details of all partners is to be submitted but photos of only ten partners including that of Managing Partner is to be submitted)

HUF

Karta

Company 

Managing Director or the Authorised Person

Trust

Managing Trustee

Association of Person or Body of Individual 

Members of Managing Committee (personal details of all members is to be submitted but photos of only ten members including that of Chairman is to be submitted)

Local Authority

CEO or his equivalent

Statutory Body

CEO or his equivalent

Others

 Person in Charge


Constitution of Taxpayer:

Partnership Deed in case of Partnership Firm, Registration Certificate/Proof of Constitution in case of Society, Trust, Club, Government Department, Association of Person or Body of Individual, Local Authority, Statutory Body and Others etc.


Proof of Principal/Additional Place of Business:

  • For Own premises –Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
  • For Rented or Leased premises –A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
  • For Rented or Leased premises –A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.

Bank Account Related Proof

Scanned copy of the first page of Bank passbook / one page of Bank StatemenT.

Opening page of the Bank Passbook held in the name of the Proprietor / Business Concern – containing the Account No., Name of the Account Holder, MICR and IFSC and Branch details.

WHO ARE EXEMPTED UNDER GST REGISTRATION?

The following shall not be required to obtain registration, and will be allotted a UIN (Unique Identification Number) instead. They can receive refund of taxes on notified supplies of goods/services received by them:

  1. Any specialized agency of UNO (United Nations Organisation) or any multilateral financial institution and organisation notified under the United Nations Act, 1947
  2. Consulate or Embassy of foreign countries
  3. Any other person notified by the Board/Commissioner
  4. The central government or state government may, based on the recommendation of the GST council, notify exemption from registration to specific persons.

PERSONS REQUIRED TO OBTAIN REGISTRATION:

  1. Every supplier who makes a taxable supply having aggregate turnover more than Rs.20 Lacs for States other than Special Category states
  2. Every supplier who makes a taxable supply having aggregate turnover more than Rs.10 Lacs for Special Category States
  3. Aggregate turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals
  4. Supply of goods, after completion of job-work shall not be included in the aggregate turnover of the registered job worker
  5. Every person who is registered on the day immediately preceding the appointed day

FOLLOWING CATEGORIES OF PERSONS SHALL BE REQUIRED TO TAKE REGISTRATION UNDER GST IRRESPECTIVE OF THE THRESHOLD LIMIT:

  1. Persons making any interstate taxable supply
  2. Casual taxable persons
  3. Persons required to pay tax under reverse charge
  4. E-commerce operators required to pay tax under sub-section (5) of section 9
  5. Non-resident taxable persons
  6. Persons who are required to deduct tax under section 51
  7. Persons who supply goods and/or services on behalf of other registered taxable persons, whether as an agent or otherwise
  8. Input service distributor (whether or not separately registered)
  9. Persons who are required to collect tax under section 52
  10. Every e-Commerce operator
  11. Every person supplying online information and database retrieval services from a place outside India to a person in India, other than a registered person
  12. Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council

Steps for applying for GST

Every person, other than a non-resident taxable person who wants to register under GST must provide his Permanent Account Number (PAN), mobile number and e-mail address in Part A of FORM GST REG-01

  1. The PAN shall be validated online via the Common Portal from the database maintained by the Central Board of Direct Taxes
  2. The mobile number is verified through a one-time password sent to the said mobile number.
  3. The e-mail address is verified through a separate one-time password sent to the said e-mail address
  4. On successful verification of the PAN, mobile number and e-mail address, an application reference number (ARN) is generated and sent on the mobile number and email address provided.
  5. Using the application reference number or ARN generated Part B of FORM GST REG-01 has to be submitted. It must be signed and documents specified in the Form must be submitted at the Common Portal either directly or through a Facilitation Centre, notified by the Board.

TIME LIMIT FOR MAKING APPLICATION FOR REGISTRATION

A person is required to get registered within 30 days from the date of becoming liable for registration subject to such conditions as is prescribed under the Registration Rules. A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prior to commencement of business.

 If person fails to register, officer may proceed to register. Registration or an Unique Identity Number shall be deemed to have been granted if no deficiency is communicated. Any rejection of application for registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be rejection in other. PAN / Mobile number / Email address is mandatory for registration – validation of PAN online / Validation of mobile and email id through OTP passwords to respective accounts. Online application reference number will be generated based on which application can be done electronically along with information / documents.

Query / clarification needs to be called for within 3 days of submission of application. Registration to be issued within 3 common working days from the date of submission of application, or within 7 common working days from the date of receipt of clarification, information or documents furnished. Physical verification of business premises may be done after issue of registration certificate in some cases.

AMENDMENT IN REGISTRATION CERTIFICATE-

Application to be made electronically within 15 days of the change along with documents. If change relates to the Name of Business, Principal Place of Business, and details of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible for day to day affairs of the business which does not warrant cancellation of registration under section 21, approval for amendment is required. If change relates to any particulars other than those specified above, approval will not be required. Change in the mobile number or the e-mail address will be only through Common portal. Fresh registration required where change in constitution results in new PAN. Registration to be issued within 15 common working days from the date of submission of application, or within 7 common working days from the date of receipt of clarification, information or documents furnished. Notice may be issued within 15 common working days from the date of receipt of the application, requiring the registered taxable person to show cause, within seven common working days of the service of the said as to why the application submitted shall not be rejected.

CERTIFICATE OF REGISTRATION

CANCELLATION OF REGISTRATION CERTIFICATE

Any Registration granted under this Act may be cancelled by the Proper Officer, in circumstances mentioned in Section 29 of CGST ACT. The proper officer may, either on his own motion or on an application filed by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration. The cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act). (Section 29 (4)). When a registration of a taxable person is cancelled by a proper officer on his own motion, then such person shall apply for revocation of such cancellation to such proper officer within 30 days from the date of service of cancellation order. No revocation is possible for cancellation on account of non-filing of returns unless such returns are filed and the tax thereon is paid along with applicable interest, penalty and late fee. If the proper officer is satisfied that sufficient ground for revocation of cancellation are there then such officer may revoke the cancellation of the registration by an order within 30 days from the receipt of such application of revocation.

 In certain circumstances specified under section 29(2) of the CGST ACT, the  proper officer can cancel the registration on his own. Such circumstances include: a  person contravene the provisions of the Act; not filing return for a continuous period of  six months (for a normal taxable person) or three returns (for Composition taxable Person); registration has been obtained by means of fraud, and not commencing business within six months from the date of registration (in case of voluntary registration). However, before cancelling the registration, the proper officer shall give reasonable opportunity of being heard. (Section 29 (2)).

The proper officer may cancel registration if the person who has voluntarily registered doesn’t commence the business within 6 months for the date of registration. The registered person himself may apply for cancellation of registration only after the expiry of 1 year from the effective date of registration.

Every registered taxable person whose registration has been cancelled shall pay the amount of ITC on inputs which are held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such cancellation or the output tax payable on such goods whichever is higher to be calculated in a manner as prescribed. In case of capital goods, the person shall pay the ITC claimed on such capital goods reduced by such percentage points as maybe prescribed in this behalf or tax on transaction value whichever is higher. 

CASUAL TAXABLE PERSON

Casual Taxable Person has been defined in Section 2 (20) of the CGST/SGST Act meaning a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, whether as principal, or agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

ADVANCE TAX BY CASUAL TAXABLE PERSON AND NON-RESIDENT TAXABLE PERSON -

While a normal taxable person does not have to make any advance deposit of tax to obtain registration, a casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration is required, in terms of Section 27(2) read with proviso thereto, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought

VALIDITY PERIOD OF THE REGISTRATION CERTIFICATE ISSUED TO A CASUAL TAXABLE PERSON AND NON- RESIDENT TAXABLE PERSON-

In terms of Section 27(1) read with proviso thereto, the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.      

REGISTRATION FORMS

SR. NO

FORM NUMBER

DESCRIPTION

01.

GST REG-01

Application for Registration (Other than a non-resident taxable person, a person supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, a person required to deduct tax at source under section 51 and a person required to collect tax at source under section 52))

02.

GST REG-02

Acknowledgement

03.

GST REG-03

Notice for Seeking Additional Information / Clarification / Documents relating to Application for Rgistration/Amendment/Cancellation

04.

GST REG-04

Clarification/additional information/document for Rgistration/Amendment/Cancellation.

05.

GST REG-05

Order of Rejection of Application for Rgistration/Amendment/Cancellation

06.

GST REG-06

Registration Certificate

07.

GST REG-07

Application for Registration as Tax Deductor at source (u/s 51) or Tax Collector at source (u/s 52)

08.

GST REG-08

Order of Cancellation of Registration as Tax Deductor at source or Tax Collector at source

09.

GST REG-09

Application for Registration of Non Resident Taxable Person

10.

GST REG-10

Application for registration of person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person

11.

GST REG-11

Application for extension of registration period by casual / non-resident taxable person

12.

GST REG-12

Order of Grant of Temporary Registration/ Suo Moto Registration

13.

GST REG-13

Application/Form for grant of Unique Identity Number (UIN) to UN Bodies/ Embassies /others

14.

GST REG-14

Application for Amendment in Registration Particulars (For all types of registered persons)

15.

GST REG-15

Order of Amendment

16

GST REG-16

Application for Cancellation of Registration

17.

GST REG-17

Show Cause Notice for Cancellation of Registration

18.

GST REG-18

Reply to the Show Cause Notice issued for Cancellation

19.

GST REG-19

Order for Cancellation of Registration

20.

GST REG-20

Order for dropping the proceedings for cancellation of registration

21.

GST REG-21

Application for Revocation of Cancellation of Registration

22.

GST REG-22

Order for revocation of cancellation of registration

23.

GST REG-23

Show Cause Notice for rejection of application for revocation of cancellation of registration

24.

GST REG-24

Reply to the notice for rejection of application for revocation of cancellation of registration

25.

GST REG-25

Certificate of Provisional Registration

26.

GST REG-26

Application for Enrolment of Existing Taxpayer

27.

GST REG-27

Show Cause Notice for cancellation of provisional registration

28.

GST REG-28

Order of cancellation of provisional registration

29.

GST REG-29

Application for cancellation of provisional registration

30.

GST REG-30

Form for Field Visit Report

 
Author:

Name:- CS Ridhima Pareek
Email:- pareek.ridhima@gmail.com

 

Click here to read the disclaimer


Write a Comment