Complete analytical view of GST Registration & Applicability

In any tax system registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without GST registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.

A. Need & Advantages of GST registration

There are following advantages:

1. Legal Recognition

2. Authorized to collect tax from customers

3. Claim input tax credit

4. Seamless flow of input tax credit.

B. Type of taxable person under GST Regime

1. Normal taxable person: Registration for all but not include all mentioned below person.

2. Composition taxable person: No input tax credit allowed and GST have to pay on concessional rate on outward supply.

3. Casual Taxable person: This registration is for seasonal business and for limited period (usually 90 days), but it may be extend. Before taking registration, person have to pay estimated tax liability in advance.

4. Non-Resident Taxable person: if any person from outside India want to supply goods to person stays in India, then such person has to take such registration. This is like Casual taxable person and for limited period (usually 90 days), but it may be extend. Before taking registration, person have to pay estimated tax liability in advance.

C. Documents Required to take GST Registration

1. PAN Card

2. Aadhar Card

3. Business address proof (ownership documents, Rent agreement along with NOC)

4. Bank Account statement and cancelled cheque.

5. In Case of Company – incorporation certificate, other – business registration

6. Digital signature

7. ID proof, Address proof, passport size photo of Individual/Karta/partner/director etc.

8. Letter of authorization or Board resolution from authorized signatory.

9. Proof of Constitution like MOA/AOA.

D. Penalty for non-registering under GST

100% of the tax amount due or Rs. 10,000, which ever is higher.

E. Step-By-Step Guidelines for Online GST Registration

Following are the various steps you need to follow to take GST registration on the GST portal.:

1. Go to the GST portal and click on the ‘Services’ tab.

2. You will have four options under Services ‘Registration’, ‘Payments, ‘User Services’ and ‘Refunds’.

3. Select ‘Registration’ and press on ‘New Registration’.

4. You will be redirected to a new page. Select ‘New Registration’ and enter your details in the empty columns (Part A).

5. Once you are done, click on ‘Proceed’

6. Enter the OTP sent to your email ID and mobile number. Press ‘Continue’.

7. You will get a Temporary Reference Number (TRN). Take a note of this number.

8. Go to GST portal once again and click on ‘Register Now’.

9. Click on ‘Temporary Reference Number (TRN)’ and enter the details. Click on ‘Proceed’ after you are done.

10. Enter the OTP sent to your email ID and mobile number. Select ‘Proceed’ afterwards.

11. You will be able to view the status of the application, which will be shown as draft. Press on the edit icon.

12. Part B will contain 10 sections. You will need to enter the necessary details and submit the required documents.

13. Head to the verification page. Tick on declaration and submit the application via any of the following means – DSC, e-Sign and EVC.

14. You will get a success message and an Application Reference Number (ARN) on your registered email ID and mobile number. To track the status of your registration, enter the ARN on the GST Portal.

F. Law relating to GST Registration

As per section 22 of the CGST Act, 2017 every supplier shall be liable to be registered under this Act if the applicable limit is exceeded.

Limits are following.

1. In case of Supply of Goods

States	Applicable Limit
Andhra Pradesh, Bihar, Chhattisgarh, Delhi, Goa, Gujrat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, West Bengal or union territory	Rs. 40 Lakh (if supplier engaged exclusively in supply of Goods)* This limit is not applicable to persons engaged in making supplies of the following goods 1. Ice Cream and other edible ice, whether or not containing cocoa 2.  Pan Masala 3.  All goods, i.e. Tobacco and manufactured tobacco substitute
Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Kerala, Meghalaya, Puducherry, Sikkim, Telangana, Uttarakhand	Rs. 20 Lakh
Manipur, Mizoram, Nagaland, Tripura	Rs. 10 Lakh

* Explanation– For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.

2. In case of Supply of services

States	Applicable Limit
Andhra Pradesh, Bihar, Chhattisgarh, Delhi, Goa, Gujrat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, West Bengal, or union territory	Rs. 20 Lakh
Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Kerala, Meghalaya, Puducherry, Sikkim, Telangana, Uttarakhand	Rs. 20 Lakh
Manipur, Mizoram, Nagaland, Tripura	Rs. 10 Lakh

The above-mentioned limit is applicable from 1^st of April, 2019.

G. Type of GST Registration

1. Mandatory GST Registration:

As per Section 24 of CGST Act, 2017, certain category of person as defined by government, have to take registration even the limit as defined above is not exceeded. These are followings: –

i. Person making any interstate taxable supply.

ii. Casual Taxable person making taxable supply.

iii. Person who are required to pay tax under RCM.

iv. E-commerce operator.

v. Nonresident taxable persons making taxable supply.

vi. Person who are required to deduct tax under section 51, whether or not separately registered under the Act.

vii. Person making taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise.

viii. Input service Distributor, whether or not separately registered under the act.

ix. Every 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.

x. Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

2. Voluntary GST Registration:

Person making taxable supply may take registration on voluntary basis even if the above-mentioned limit as defined above as is not exceeded and not liable to compulsory register under section 24 of CGST Act, 2017.