Introduction

Multiple taxes are merged under the GST structure for example Excise, Entry Tax, Sales Tax, Service Tax, VAT etc. Earlier taxpayers were under the burden of complex tax structure and thus ultimately they were paying taxes over such tax, hence to simplify the Indirect Taxation system, GST is introduced. Government introduce this taxation system as One Nation, One Market, One Tax, hence it will lead to uniform taxation system all around the counry thus state wise different tax rates is no longer be the case. it will also boost the secnerio of ease of doing business in the country.

The process of registration is referred as GST registration under GST Act. GST registration is very important because it will enable you to avail various benefits that are available under the GST regime, Also, timely registration will help you to avoid any kind of interface with tax authorities. In simple words registratioin under GST as a normal taxpayer person is mandatory for every business entirty carrying out a taxable supply of goods or services and whose turnover exceeds the threshold limit of Rs. 20 lakh/ 10 Lakh as applicable for different states. A person without GST registration can neither collect GST from his customers/ Consumers/ Clients nor claim any input tax credit of GST paid by him on his purchases. Hence one of the most important benefit is to avail seamless input tax credit.

GST registration is Mandatory for:-

  • Any business whose turnover in a financial year exceeds Rs 20 lakhs (limit is Rs 10 lakhs for special category States) Section 22 (1)

(Note: If turnover is of only exempted good /services which are exempt under GST, this clause does not apply.)

  • Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day (Section 22 (2))
  • persons making any inter-State taxable supply;
  • casual taxable persons making taxable supply;
  • persons who are required to pay tax under reverse charge;
  • person who are required to pay tax under sub-section (5) of section 9;
  • non-resident taxable persons making taxable supply;
  • persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
  • persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
  • Input Service Distributor, whether or not separately registered under this Act;
  • persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
  • every electronic commerce operator;
  • every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and
  • such other person or class of persons as may be notified by the Government on the recommendations of the Council.

The following persons shall not be liable to registration

  • Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act.
  • An agriculturist, to the extent of supply of produce out of cultivation of land.
  • The Government on the recommendations of the Council may specify by notification.

Process of Registration Under GST

GST registration process is a online process through a online portal provided by Central Government of India. Government also appoint GSPs (GST Suvidha Providers) to help businesses with the registration process. Facilitation Center are also available for assisting taxpayers for getting registration under GST.

Registration process for getting GST Registration is quite simple and important steps are as Follow:-

Step One:-

  • Logon to the GST online portal and select New registration.
  • The applicant, will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal.The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP).
  • Temporary Reference Number (TRN) will be allotted after successfully furnishing preliminary details in PART –A of the application which can be used for filling up details in PART-B of the application. TRN will be available on the Common Portal with a validity of a period of 15 days.

Step Two:

  • Applicant needs to fill Part- B of Form GST REG-01 then the form can be submitted after attaching required documents as applicable.

Step Three:

  • Your Application is Now Submitted and under process, The GST Officer now will verify your application on the basis of data and details you provided in application.

(This Process will lasts for Three Days that means the officer has to either approve your request or submit all of his objections for further process and clarification.)

Step Four:

  • If the information and the uploaded documents are found in order, the State and the Central authorities shall approve the application and communicate the approval to the common portal within three common working days. The portal will then automatically generate the Registration Certificate Form GST REG –06.

(In case no deficiency is communicated to the applicant by the tax authorities within three common working days, the registration shall be deemed to have been granted)

  • The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal.

Step Five:

  • If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.

Step Six:

  • The officer will further look in to the application / documents submitted in detail and then either approve or reject the application with in seven days.

In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order.The applicant shall have the right to appeal against the decision of the Authority. 

Final Step:

  • If you have provided all required information via Form GST REG-01 or Form GST REG-04,the registration certificate in Form GST REG –06 will be issued to the applicant,for the principal place of business as well as for every additional place of business

Note:

  • In case registration is granted, applicant can download the Registration Certificate from the GST common portal.
  • No fee is payable for filing application for registration.
  • Fifteen digits GSTIN includes First two digit of state code next TEN characters of PAN and TWO characters of entity code & one checksum character
  • Every certificate of registration shall be digitally signed by the proper officer under the Act. The registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
  • As per Section 25(3) A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
  • Any person who applies for registration may give an option to pay tax under section 10 (Composition Scheme) in Part B of FORM GST REG-01, which shall be considered as an intimation to pay tax under the said section.
  • As per Section 28(3) Any rejection or approval of amendments under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a rejection or approval under this Act.
  • A person seeking registration under this Act shall be granted a single registration in a State or Union territory: Provided that a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditions as may be prescribed. Section (25)(5)

Special provisions for registration relating to casual taxable person and non-resident taxable person.

Section 27 of CGST Act provides for special provisions relating to casual taxable person and non-resident under GST. As per section 24 of CGST Act 2017, casual taxable person or a non-resident taxable person are liable to get registered under this act irrespective of the their total turnover. Further a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Section 25.

Section 27 says that Casual/non-resident taxable person may obtain a temporary registration for a period of 90 days (extendable for additional 90 days).

A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 25, 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.

Basic Documents required for GST registration:

  • Photographs of applicant as per business entity i.e. Indvidual / Partners/ MD/ Directors/ Authorised person etc
  • PAN card No./ Aadharcard No./ Valid Mobile No./ E-mail ID of the Applicant
  • Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation any other Registration Certificate issued by government.
  • Details and proof of place of business like Rent Agreement/Lease Deed/Electricity Bill/ Consent Letter/ Affidavit as the case may be.
  • Cancelled cheque/ Bank Passbook of your bank account showing name of account holder, MICR code, IFSC code and bank branch details.
  • Authority Letter/ Board Resolution for applying for GST

Effective date of registration

  • Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date of his liability for registration.
  • Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
  • In case of suo moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration.

Digitally Signed Application

Taxpayers would have the option to sign the submitted application using valid digital signatures or other alternative mechanisms. Further some specified taxpayers mandatorily have to sign digitally only, details are given in table below:-

SR. No. Type of Applicant Type of Signature required
1 Private Limited Company, Public Limited Company, Public Sector Undertaking, Unlimited Company, Limited Liability Partnership, Foreign Company, Foreign Limited Liability Partnership

 

Digital Signature Certificate (DSC)- Class-2 and above
2 Other than above

 

Digital Signature Certificate class 2 and above e-Signature or any other mode as may be notified

Further Amendments to the Registration Certificate is permissible

As per Section 28 Every registered person and a person to whom a Unique Identity Number has been assigned shall inform the proper officer of any changes in the information furnished at the time of registration or subsequent thereto, in such form and manner and within such period as may be prescribed. The proper officer may, on the basis of information furnished or as ascertained by him, approve or reject amendments in the registration particulars in such manner and within such period as may be prescribed.

Provided that approval of the proper officer shall not be required in respect of amendment of such particulars as may be prescribed, Provided further that the proper officer shall not reject the application for amendment in the registration particulars without giving the person an opportunity of being heard.

Cancellation OF GST Registration

The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,–

(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of;

(b) there is any change in the constitution of the business;

(c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24.

Further the registration may be cancelled with retrospective effect by the proper officer in following cases:

(a) registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed;

(b) registered person paying tax under section 10 (Composite Scheme) has not furnished returns for three consecutive tax periods, and other registered person, has not furnished returns for a continuous period of six months;

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration;

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation for any period prior to the date of cancellation.

The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.

Important forms Related with GST Registration:

Various forms pertaining to registration and its cancellation as provided under the GST law are given in table below:-

Registration Under GST
SR. No. Forms Particulars
1. 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))
2. GST REG-02 Acknowledgement
3. GST REG-03 Notice for Seeking Additional Information / Clarification / Documents relating to Application for Registration / Amendment / Cancellation
4. GST REG-04 Clarification /additional information/ document for Registration / Amendment / Cancellation
5. GST REG-05 Order of Rejection of Application for Registration/ Amendment / Cancellation
6. GST REG-06 Registration Certificate
Application for Registration of Non Resident Taxable Person
SR. No. Forms Particulars
1. GST REG-09 Application for Registration of Non Resident Taxable Person
Cancellation Of Registration
SR. No. Forms Particulars
1. GST REG-16 Application for Cancellation of Registration

 

2. GST REG-17 Show Cause Notice for Cancellation of Registration
3. GST REG-18 Reply to the Show Cause Notice issued for Cancellation
4. GST REG-19 Order for Cancellation of Registration
5. GST REG-20 Order for dropping the proceedings for cancellation of registration
6. GST REG-21 Application for Revocation of Cancellation of Registration
7. GST REG-22 Order for revocation of cancellation of registration

What is Composition Scheme Under GST?

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2 responses to “Analytical Note on Registration under GST”

  1. Harkesh Sharma says:

    Nice..
    It is helpful to understand the process easily..
    Thanks

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