Understanding GST Registration: A Comprehensive Guide

Introduction

In every tax system, registration stands as the foundational prerequisite for identifying taxpayers, thereby ensuring tax compliance within the economy. Under the GST Law, the registration of a business entity involves obtaining a distinct number from the relevant tax authorities. This number serves the dual purpose of enabling the collection of taxes on behalf of the government and facilitating the availment of Input Tax Credit for taxes paid on inward supplies. Absent registration, an individual is unable to collect taxes from customers or claim input tax credits for taxes paid.

This article contains all the section mentioned under registration chapter of the CGST, Act.

Section 22 (Person liable for GST registration)[1]

1. Every supplier liable to be registered in the state or union territory, from he makes a taxable supply, if his aggregate turnover in a financial year exceed Rs 20 lakhs

Indian State	If exclusively engaged in sale of goods	If exclusively engaged in sale of supply, Sale of goods + sale of supply
Manipur, Mizoram, Nagaland, Tripura.	10 Lakhs	10 Lakhs
Pondicherry, Uttarakhand, Meghalaya, Arunachal Pradesh, Telangana, Sikkim.	20 Lakhs	20 Lakhs
All the other states including following special category state- Assam, J & K, Himachal Pradesh.	40 Lakhs	20 Lakhs

Proviso- In the following cases 40 lakh limit is not applicable (only 10/20 Lakh Limit is available)

a) Required to take compulsory registration

b) Person who has taken voluntary registration

c) Supply of-

a. Ice- cream or edible ice cream

b. Pan Masala

c. All Tobacco & Tobacco Products

d. Fly ash bricks

e. Fly Ash Aggregates

f. Fly Ash Blocks

Proviso- Person deemed exclusive supplier of goods even if he has received interest or discount (Exempt SOS) on Loan advances, deposits.

2. Supply made by an agent on the behalf of principals to be added in aggregate turnover of agent.

3. Supply made by job workers on the behalf of the principals not to be added aggregate turnover of job work.

4. When business is carried on by the taxable person transferred, whether on account of succession or otherwise then transferee/ successors shall take new registration.

Section 23 (Person Not liable for GST registration)[2]

An individual solely involved in providing non-taxable goods, such as alcohol for human consumption or petroleum products, or exclusively engaged in supplying exempted goods like agricultural produce, as well as agriculturists or individuals exclusively engaged in providing goods or services under the reverse charge mechanism, are not obligated to obtain registration under the Goods and Services Tax (GST).

Section 24 (Compulsory GST Registration)[3]

Even if the general rule says you may not have to register, some specific cases require you to register under this law. These include:

1. Person making any inter-State Taxable Supply Except-

a) Person making inter-state taxable supplies of service.

b) Person making inter-state taxable supplies of Handicraft Goods.

c) Job Worker engaged in making inter-state supply of services.

2. Casual taxable person making taxable supply Except-

a) CTP making Supply of Handicraft Goods & Handmade Shawls, Stoles, etc.

3. Person who are required to pay tax under Reverse Charge.

4. Person who are required to pay tax under Sec 9(5)- ECO.

5. NRTP (Non- Resident Taxable Person) Making Taxable Supply.

6. Persons who are required to deduct tax under section 51, Whether Separately Registered under this act.

7. Persons who make taxable supply of goods or services or both on the behalf of the other taxable persons whether as an agent or otherwise (Agent issuing own invoice).

8. Input service distributor, whether separately registered under this act.

9. Every electric Commerce Operator, who is required to collect tax at source U/s 52.

10. Person who supply goods or services or both, other than supplies specified under sec 9(5) through such electronic commerce operator who is required to collect tax at source U/s 52.

a) Exception- Exemption from registration person making supply of services is exempted from obtaining registration till threshold.

11. Every person suppling OIDAR Services from place outside India to person in India, other than a registered person.

12. Any other person notified by Central Government.

Section 25 (Procedure for GST Registration)[4]

1.  Individuals or entities obligated to register under section 22 or section 24 must apply for registration in each relevant State or Union Territory within thirty days of becoming liable. The application process is subject to prescribed conditions. Notably, casual or non-resident taxable persons must apply at least five days before commencing business. Furthermore, those with a unit in a Special Economic Zone or serving as a Special Economic Zone developer must obtain a separate registration for that unit.

2. A person seeking registration under this Act will be granted a single registration in a State or Union Territory. However, individuals with multiple places of business may be granted separate registrations for each, subject to prescribed conditions.

3. Individuals not required to register under section 22 or section 24 may voluntarily register, subject to the provisions of this Act applicable to registered persons.

4. Individuals with multiple registrations, whether in one or more States or Union Territories, are treated as distinct persons under this Act.

5. Establishments in different States or Union Territories owned by a person with registration in one location are treated as distinct persons for the purposes of this Act.

6. Every person seeking registration must have a Permanent Account Number issued under the Income-tax Act, 1961, or a Tax Deduction and Collection Account Number in the case of tax deduction under section 51.(6A), (6B), (6C), (6D) – Aadhaar authentication is required for registration, and alternate means of identification may be offered if an Aadhaar number is not assigned.

7. Non-resident taxable persons may be granted registration based on prescribed documents.

8. If a person liable for registration fails to obtain it, the proper officer may proceed to register them as prescribed.

9. Specialized agencies, consulates, and entities notified by the Commissioner may be granted a Unique Identity Number for specific purposes.

10. Registration or Unique Identity Number is granted or rejected after due verification within the prescribed period.

11. A certificate of registration is issued in the prescribed form and with effect from the prescribed date.

12. Registration or Unique Identity Number is deemed granted if no deficiency is communicated within the prescribed period.

Section 26 (Deemed GST Registration)[5]

1. If you get registered or receive a Unique Identity Number (UIN) under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, it’s automatically considered as being registered or having a UIN under this Act. This is as long as your application hasn’t been rejected under this Act within the specified time.

2. Even if your application is rejected under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, it’s treated as a rejection under this Act too, regardless of what’s mentioned in sub-section (10) of section 25.

Section 27 (Special provisions relating to casual taxable person and non-resident taxable person.)[6]

1. The registration certificate granted to a casual taxable person or a non-resident taxable person remains valid for the duration specified in the registration application or ninety days from the effective registration date, whichever is earlier. The individual is authorized to engage in taxable transactions only after receiving the registration certificate. In cases where the taxable person demonstrates sufficient reasons, the designated officer may extend the ninety-day period for an additional ninety days.

2. Upon submitting the registration application as per subsection (1) of section 25, a casual taxable person or a non-resident taxable person is required to make an upfront tax deposit equivalent to the estimated tax liability for the applied registration period. If an extension is requested under subsection (1), the taxable person must deposit an extra amount of tax equivalent to the estimated liability for the extended period.

3. The deposited amount under subsection (2) is credited to the electronic cash ledger of the individual and is to be utilized in accordance with the provisions outlined in section 49.

Section 28 (Amendment of GST registration.)[7]

1. Any registered person or an individual assigned a Unique Identity Number must promptly notify the designated officer of any modifications to the information provided during registration or subsequently, using the prescribed form and method within the stipulated period.

2. The designated officer, relying on the information submitted under subsection (1) or as determined by them, has the authority to endorse or disapprove alterations to the registration details. This process is to be carried out in the manner and timeframe specified. It’s important to note that the approval of the designated officer is not obligatory for amendments to particulars specified by regulations. Additionally, the designated officer cannot reject an application for amendment in registration details without affording the concerned individual an opportunity to present their case.

3. Any endorsement or disapproval of amendments under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as applicable, is considered an endorsement or disapproval under this Act.Top of Form

Section 29 (Cancellation of GST Registration)[8]

1. The designated officer, either at their own discretion or upon application by the registered person or their legal heirs in the event of the person’s demise, may cancel the registration in the manner and within the timeframe prescribed. This is contingent on certain circumstances, such as: (a) discontinuation, full transfer, amalgamation, demerger, or any other disposal of the business, including the death of the proprietor; (b) changes in the business’s constitution; or (c) the taxable person, excluding those registered under subsection (3) of section 25, is no longer obligated to be registered under section 22 or section 24. [Provided that, during the pendency of registration cancellation proceedings initiated by the registered person, the registration may be temporarily suspended as prescribed.]

2. The designated officer is empowered to cancel a person’s registration from a determined date, including any retrospective date, if: (a) a registered person breaches specified provisions of the Act or the rules outlined therein; (b) a person paying tax under section 10 fails to submit the return for a financial year beyond three months from the due date; (c) any registered person, excluding those in clause (b), fails to furnish returns for a continuous tax period as specified; (d) a person voluntarily registered under subsection (3) of section 25 fails to commence business within six months from the date of registration; or (e) registration is obtained through fraud, deliberate misrepresentation, or the suppression of facts. [Provided that the cancellation cannot occur without affording the person an opportunity to be heard. Provided further that, during the pendency of registration cancellation proceedings, the proper officer may suspend the registration as prescribed.]

3. The cancellation of registration does not absolve the person’s liability to pay taxes and other dues under this Act or fulfill any obligations under this Act or the rules made thereunder for any period preceding the cancellation date, regardless of whether such tax and other dues are determined before or after the cancellation date.

4. The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act is considered a cancellation of registration under this Act.

5. Upon the cancellation of registration, the registered person must pay an amount, debited in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax on inputs held in stock, inputs in semi-finished or finished goods, or capital goods and plant machinery on the day preceding the cancellation date, or the output tax payable on such goods, whichever is higher. This calculation is done as prescribed. [Provided that, in the case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on these items, reduced by a prescribed percentage or the tax on the transaction value, whichever is higher.]

6. The amount payable under subsection (5) is calculated as prescribed.

Section 30 Revocation of cancellation of GST registration.[9]

1. Under conditions as stipulated, a registered person whose registration is canceled by the designated officer on their own initiative may apply for the revocation of the registration cancellation in the prescribed manner within thirty days from the date of receiving the cancellation order. [Provided that, for registered persons served notice under subsection (2) of section 29, as provided in clause (c) or clause (d) of subsection (1) of section 169 and who, due to an inability to respond, resulted in the cancellation of their registration certificate up to 31-03-2019, they are permitted to file an application for revocation of the registration cancellation not later than 22-07-2019.]

2. The designated officer may, by order, either revoke the cancellation of the registration or reject the application in the manner and within the period prescribed. However, the application for revocation of cancellation of registration cannot be rejected without providing the applicant an opportunity to be heard.

3. The revocation of cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act is considered a revocation of cancellation of registration under this Act.

[1] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[2] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[3] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[4] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[5] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[6] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[7] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[8] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

[9] THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 (12 OF 2017)

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Author Yash Bhardwaj is Lawyer, Jamia Hamdard University, Delhi