GST is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
In any tax system, registration is the 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 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.
Persons liable for Registration under GST
As per sec 22 of the CGST/SGST Act 2017, every supplier who makes a taxable supply i.e supply of goods and/ or services which are leviable to tax under GST law, and his aggregate turnover 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.
Sec 24 of the CGST act mention certain categories of suppliers, who shall be liable to take GST registration even if their aggregate turnover is below the said threshold limit of 20 lakh rupees.
Persons not liable for registration under GST
Conditions and procedures for registration under GST
Effective date of registration under GST
Where the application for registration has been submitted within 30 days from the date on which the person becomes liable to GST registration, the effective date of GST registration shall be the date on which he became liable for GST registration.
Where an application for GST registration has been submitted by the applicant after 30 days from the date of his becoming liable to GST registration, the effective date of GST registration shall be the grant of GST registration.
In case of a person taking GST 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.
Advantages of taking registration under GST
Amendments to the GST registration certificate
As per sec 28, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars within a period of 15 common working days from the date of receipt of application for amendment.
It is to be noted that permission of the proper officer for making amendments for only certain core fields of information, whereas for the other fields, the certificate of registration shall stand amended upon submission of application in the GST common portal.
Cancellation of GST registration certificate
Any registration granted under this act may be cancelled by the proper officer, in circumstances mentioned in sec 29 of the CGST/SGST act. The proper officer may, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable 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. As per the registration rules, an order for cancellation is to be issued within 30 days from the date of receipt of reply to SCN or from the date of receipt of application for cancellation.
Such circumstances include contravention of any of the prescribed provisions of the CGST act or the rules made there under, not filing return by a composition dealer for three consecutive tax periods or non furnishing of returns by a regular taxpayer for a continuous period of 6 months, and not commencing business within 6 months from the date of voluntary registration. However, before cancelling the registration, the proper officer has to follow the principles of natural justice.
(Author can be reached on Srinivas. Battala77@gmail.com)