CHAPTER 21

 

Registration under GST
  1. A supplier having an aggregate turnover exceeding 20 lakhs needs to register under GST. In the special category states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, suppliers exceeding an aggregate turnover of 10 lakhs are required to register.
  2. Aggregate turnover shall include all supplies made by the taxable person whether on his own account or made on behalf of his principals.
  3. In cases of business transfer, amalgamation, merger, demerger, etc, the transferee is required to be registered.
  4. Persons engaged in supplies that are wholly exempt or not liable to tax and agriculturists need not register under the Act.
  5. However, there are certain categories who need to register in spite of being within the threshold limits of 20/10 lakhs:
  • Inter-state taxable supplier.
  • Casual taxable persons – A Casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he does not have any fixed place of business. Such persons needs to register in the State from where they seek to supply as a Casual taxable person.
  • Supplier under reverse charge mechanism.
  • E-commerce operators.
  • Non-Residents making taxable supply – A Non-Resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs a GST registration.
  • Persons required to deduct TDS under section 51.
  • Supplier on behalf of another taxable person.
  • Input Service Distributor.
  • Persons supplying through e-commerce operator.
  • Suppliers of online information and database access or retrieval services from outside India to person in India.
  • Such other persons notified by the Government.

 

Procedure for registration

  1. A person liable to be registered shall apply within 30 days of the date on which he becomes liable to pay tax in every such liable State.
  2. Casual taxable person and non-resident taxable person shall apply at least 5 days prior to the commencement of business.
  3. Supplier from territorial waters shall apply in the coastal state or UT where the nearest point of the appropriate base line is located.
  4. PAN is mandatory for all registration applications.
  5. Application to be made online on the common portal or through a facilitator in Part A of Form GST REG-01 declaring PAN, mobile number, e-mail address, State or UT.
  6. PAN will be verified from the CBDT data base, mobile number and e-mail address will be verified by sending OTPs and then a temporary reference number will be generated.
  7. Using this reference number, Part B of Form GST REG-01 is to be submitted with relevant documents electronically.
  8. On verification of the documents, the proper officer can grant registration within 3 working days from the date of application.
  9. If the proper officer requires further information or documents he can issue an order in Form GST REG-03 within 3 days of the application.
  10. The applicant is required to respond with clarifications in Form GST REG-04 within 7 working days of receipt of such intimation.
  11. If the officer is satisfied, he shall grant registration within 7 working days of receipt of the clarification.
  12. If the officer is not satisfied or if the applicant does not respond, the application can be rejected and informed electronically in Form GST REG-05.
  13. If the officer has not taken any action within 3 day of the application or within 7 days of the clarification, the registration is deemed to have been granted.
  14. Once the registration has been granted or deemed to be granted, the applicant will receive the certificate of registration in Form GST REG-06 showing the principal and additional places of business and the GSTIN.
  15. In some cases, the officer may require a physical verification of the business premises which can be done after registration.
  16. Every registered person shall display the certificate of registration and the GSTIN on their name board in each of their business premises.
  17. Where, pursuant to any survey, enquiry, inspection, search or any other proceedings, the proper officer finds that a person liable to registration has failed to apply, such officer may register the said person on a temporary basis and issue an order in form GST REG-11 after which the taxable person needs to submit an application within 90 days of such order or if has appealed against it, within 30 days of the order upholding registration by the Appellate Authority.  

 

Registration for business verticals

  1. Taxable persons having the same PAN but multiple categories of business are termed as business verticals.
  2. Such persons having goods and services distinguishable from other goods and services of the enterprise can take multiple registrations for ease of transactions even if all the categories are in the same State.
  3. The taxable person has to submit separate Forms GST REG-01 for each business vertical.
  4. All other verification processes remain the same.
  5. In this case, all business verticals will be either under the normal tax regime or under the composite scheme. A mixture of the two among the verticals is not permitted.

 

Registration for Casual Taxable Person and Non-Resident Taxable Persons

  1. A Non-Resident taxable person means any person who occasionally undertakes transactions involving supply of goods and services whether as a principal or agent, but who has no fixed place of business or residence in India.
  2. Casual Taxable Person means a person who occasionally undertakes transactions involving supply of goods or services in the course or furtherance of business whether as principal, agent, etc., in a State or UT where he has no fixed place of business.
  3. A Non-Resident taxable person may be granted registration based on a document other than PAN. He has to submit a valid passport in Form GST REG-10. The application has to be signed by an authorised signatory in India holding a valid PAN.
  4. A Casual Taxable Person has to submit an application in the regular Form GST REG-01.
  5. Both categories will be subject to the same verification process as in the general rule.
  6. Both categories at the time of application shall make an advance deposit of the estimated tax liability and registration will be granted after the deposit is credited to electronic cash ledger.
  7. Both categories will be granted registration for 90 days or a period as specified in the certificate, whichever is earlier.
  8. They may seek an extension by applying for extension in Form GST REG-11 before the expiry of the registration and make an advance deposit for the extra estimated tax liability.

 

Other Registrations

  1. Suppliers of online information and database access or retrieval services from outside India to non-taxable person in India shall apply for registration in Form GST REG-10.
  2. Any person required to deduct or collect tax at source shall register in form GST REG-07.

 

Amendment of Registration

  1. Where there is any change in the information furnished at the time of registration, the taxable person can submit an application in Form GST REG-14 to request for appropriate amendments in the certificate.
  2. The proper officer shall within 15 working days of the application approve the amendment in Form GST REG-15.
  3. Provisions and time periods to issue show cause notice and response from the applicant and deemed registrations and cancellations are the same as for a fresh application.
  4. If the applicant’s PAN changes for any reason, he needs to make a fresh registration application.

 

Cancellation of Registration

  1. The proper officer may, either on his own motion or on an application filed by registered person or his legal heir cancel the registration in the manner prescribed.
  2. A registered person shall electronically submit an application in Form GST REG-16 along with required documents within 30 days of occurrence of the event warranting cancellation.
  3. No application for cancellation shall be considered in case of a taxable person who has registered voluntarily before the expiry of a period of one year from the effective date of registration.
  4. The registration granted to a person is liable to be cancelled if the said person does not conduct any business from the declared place of business or issues invoice or bill without supply of goods or services in violation of the Act.
  5. The proper officer may in the manner as may be prescribed, cancel the registration of taxable person from such date, including any retrospective date, as he may deem fit in certain specific cases, but not without providing an opportunity to the registered person to be heard.
  6. The proper officer may issue a show cause notice in GST REG-17 as to why the registration should not be cancelled and the registered person is required to respond in form GST REG-18 within 7 working days of receipt of the notice.
  7. Where the proper officer is satisfied with the application, he shall process an application for cancellation within 30 days of receipt of the application or the response to a show cause notice and issue an order in Form GST REG-19.
  8. Where the proper officer is satisfied with the response to a show cause notice to not cancel a registration, he shall pass an order in Form GST REG-20.
  9. When the registration is cancelled by the proper officer on his own motion, the registered person may apply for revocation of cancellation of the registration within 30 days and follow the prescribed process.