Introduction
Gaining a GSTIN (Goods and Services Tax Identification Number) is a crucial step for many businesses in India. This registration brings your business into the official GST network, allowing you to legally collect taxes, claim input tax credits on your purchases, and participate in a unified national market. However, the process isn’t just about filling out a form. It’s a structured journey that starts with understanding who is required to register and ends with either voluntary or compulsory cancellation.
Registration under the Goods and Services Tax (GST) regime is not merely an administrative formality but a legal mandate as stipulated by the Central Goods and Services Tax Act, 2017 (CGST Act) and corresponding State/Union Territory GST Acts. It is the foundational step that brings a taxable person within the ambit of the GST framework, enabling them to levy and collect tax, claim Input Tax Credit (ITC), and comply with a unified indirect tax system. Many business owners, especially those new to the GST regime, find this entire process complex and confusing, often struggling to understand when to register, what the procedure involves, and what happens if a registration needs to be cancelled.
This blog offers a comprehensive legal and procedural analysis of the entire GST registration lifecycle. We will meticulously examine the statutory provisions governing the mandatory and voluntary registration requirements, outline the prescribed procedural steps, and provide a detailed review of the provisions concerning the cancellation and subsequent revocation of a GST registration. The objective of this guide is to provide a clear, well-structured, and legally-informed overview that serves as a valuable resource for law students and professionals navigating the intricacies of GST compliance.
Page Contents
Persons Liable for GST Registration
The liability for GST registration is determined by specific thresholds and conditions outlined in Section 22 and 24 of the CGST Act, 2017.
- Threshold-Based Liability (Section 22): A person must register for GST if their aggregate turnover in a financial year exceeds the specified threshold limit. The standard limit is ₹20 lakhs, while for certain special category states, it is ₹10 lakhs. For suppliers of goods, a higher threshold of ₹40 lakhs applies, subject to certain conditions. This ensures that only businesses of a certain size are brought into the tax net, easing the compliance burden on smaller enterprises.
- Compulsory Registration (Section 24):This section mandates registration for certain categories of persons regardless of their turnover. This provision is crucial for preventing tax evasion and ensuring a level playing field. Key examples include:
- Inter-state suppliers of goods.
- Casual taxable persons (who undertake supply in a state where they have no fixed place of business).
- Non-resident taxable persons.
- Persons required to pay tax under the reverse charge mechanism.
- E-commerce operators.
Persons Not Liable for Registration
While many are required to register, Section 23 of the CGST Act provides specific exemptions. This includes:
- Any person engaged exclusively in the business of supplying goods or services that are not liable to tax or are wholly exempt from tax.
- An agriculturist to the extent of supply of produce out of cultivation of land.
This provision ensures that individuals and entities who are not part of the taxable supply chain are not burdened with the complexities of GST registration and compliance.
Procedure for GST Registration
The GST registration process is entirely online through the GST Common Portal. The procedure can be broken down into the following key steps:
- An applicant first needs to submit basic details (PAN, mobile number, email) to receive a Temporary Reference Number (TRN). This is followed by the submission of detailed business information and supporting documents, such as proof of business, photographs, and bank account details.
- The submitted application is then scrutinized by a GST officer. If the officer finds the application to be in order, the registration is approved within a specified time frame.
- Upon approval, the applicant is granted a unique 15-digit GSTIN, which is their official identity under the GST regime.
Cancellation of GST Registration
GST registration can be cancelled under specific circumstances as per Section 29 of the CGST Act.
- By the Proper Officer (Suo Moto):An officer may cancel a registration if the business has ceased its operations, if it has not filed returns for a continuous period (e.g., six months for a regular taxpayer), or if the registration was obtained through fraud.
- By the Taxpayer (Voluntary):A taxpayer can apply for cancellation if their business has been discontinued, transferred, or if they are no longer required to be registered (e.g., their turnover falls below the threshold).
Revocation of Cancellation of GST Registration
A taxpayer whose registration has been cancelled by a proper officer can apply for revocation under Section 30 of the CGST Act.
- Procedure for Revocation: The application for revocation must be filed within 30 days from the date of the cancellation order. The taxpayer must demonstrate that the reason for cancellation has been rectified and all pending returns have been filed. The proper officer will then review the application and, if satisfied, revoke the cancellation, restoring the taxpayer’s registration.
Conclusion
In conclusion, the GST registration lifecycle is a well-defined legal and procedural framework designed to ensure transparency, compliance, and the seamless functioning of a unified tax system. From the initial determination of liability to the provisions for cancellation and revocation, each stage is governed by statutory provisions that provide clarity and enforceability. For law students and future legal professionals, a thorough understanding of these procedures is not just a matter of academic interest but a practical necessity. The GST regime, with its emphasis on digital processes and streamlined compliance, represents a modern approach to indirect taxation, making it a pivotal area of study for those specializing in tax law.
Author Bio
A state govt body providing Suvidha for Export of Consignment to Bangla Desh through Petrapole Border is charging Rs 10,000/- per truck . Thus the said Govt body’s Turn over us much more than Rs 40 lakhs per annum . Is it liable to get itself registered under GST ?