GST Registration – A Detailed Analysis

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 registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him.

In this article, we’ll cover all the aspects of registration, persons eligible for registration, manner of registration and much more.

Types of Registration under GST

Section 22 of the CGST Act: Persons liable for GST registration

Every person is liable to be registered under GST if the aggregate turnover exceeds the specified limit in the respective states or UT as mentioned below:

• Persons who are registered under the erstwhile law, on the day immediately preceding the appointment date, is liable to obtain GST registration.
• The registered taxable person when transfers business to another person on going concern basis, whether on account of succession or otherwise, in such case the transferee or the successor is liable to obtain GST registration.
• Transfer of company in case of amalgamation or de-merger in accordance with an order of a high court, tribunal or otherwise.

Notes:

• ‘Aggregate Turnover’ means the aggregate value of all taxable supplies, exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on an all-India basis but excludes Value of inward supplies on which tax is payable by a person on reverse charge basis, Central tax, State tax, Union territory tax, Integrated tax and cess.
• The expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
• Supply of goods, after completion of jobwork (JW), by a registered JW shall be treated as the supply of goods by the principal (section 143), and the value of such goods shall not be included in the aggregate turnover of the registered JW.

Vide Notification No. 10/2019-CT dated 07.03.2019, the Central Government has granted general exemption from obtaining registration by any person, who is engaged in exclusively supply of goods and whose aggregate turnover in the financial year does not exceed Rs. 40 Lakhs, except

• Person required to take compulsory registration under Section 24 of the said Act (discussed below)
• In Person exercising option under the provision of sec 25(3) for voluntary registration under the GST Act, or such registered persons who intend to continue with their registration under the GST Act.
• Person, who is engaged in making supplies of the Ice Cream and other edible Ice, whether or not containing cocoa; Pan Masala; and Tobacco and manufactured tobacco substitutes.

Section 24 of the CGST Act: Mandatory GST Registration

• Person making inter state taxable supply of goods or services or both.
• Casual Taxable Person making taxable supply
• Person liable to pay the taxes under reverse charge
• Electronic Commerce operator for supplying services notified u/s 9(5)
• Non resident taxable person making taxable supply
• Person who, are required to deduct the TDS u/s 51 whether or not separately registered under this act
• Person who makes taxable supply of goods and/or services on behalf of other taxable person whether as an agent or otherwise
• Input Service Distributor whether or not separately registered under this act
• Person who supply goods or services or both through electronic commerce operator who is required to collect tax at source u/s 52, other than supplies specified u/s 9(5)
• E-commerce operator or aggregator who is required to collect tax at source u/s 52
• Person supplying online information and database access or retrieval services (OIDAR) from a place outside India to a person in India, other than a registered taxable person
• Such other person as may be notified by the government

Section 25: Manner of Registration under GST

• Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is also liable within 30 days from the date on which he becomes liable to registration.
• In case of a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.
• In case of any person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
• Any person who is seeking registration under GST shall be granted a single registration in a State or Union territory. In case a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical.
• A person, though not liable to be registered under section 22 or section 24 of the CGST Act, may get himself voluntarily registered and comply the all provisions of GST Act as applicable to a registered person. It includes Job Worker Services also.
• Any specialized agency of the UNO or any other organisation as notified by the commissioner shall be granted Unique Identity Number (UIN) for all purposes including refund of taxes on notified supplies. The registration number or UIN shall be issued as per procedure or shall be deemed to have been granted with a period of 7 days.
• A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of the GST Act.
• The taxpayers shall declare all place of business (principal & additional places) at the time of filing registration form.
• Where an eligible person who is liable to be registered under this Act fails to obtain registration, the proper officer may proceed to register such person in such manner as may be prescribed. [Registration by Department]

Eligibility for GST Registration:

Every person shall have a PAN issued under the Income-tax Act, 1961 in order to be eligible for grant of registration. Also, a person who is required to deduct tax u/s 51 (TDS under GST Act), shall have a TAN, in lieu of PAN in order to be eligible for registration.

Along with the PAN & TAN, w.e.f 01.04.2020, Aadhar Authentication for specified persons is also mandatory and if Aadhar Number is not available, such person shall offer alternate and viable means of identification. If such persons failed to undergo authentication, then registration shall be granted only after physical verification of the principal place of business by the proper officer, not later than 60 days from the date of application and the verification report, including photographs shall be uploaded in Form GST REG-30 on the common portal within a period of 15 working days from the date of such verification.

Section 27: Casual Taxable Person & Non- Resident Taxable Person

• The registration by casual taxable person or non-resident taxable person shall be applied 5 days prior to commencement of business.
• The certificate of registration issued to a casual taxable person or non-resident taxable person shall be valid for 90 days from the effective date of registration, which can be further extended for a period of 90 days by the proper officer on sufficient reasons. And also, Period of Registration will be written in the Registration Certificate.
• Such persons have to make taxable supplies only after the date of issuance of certificate of registration. The casual or non-resident taxable persons have to make an advance deposit of estimated tax liability and make additional deposit of tax for extension period if so required.

Section 28: Amendment of GST Registration

• Every registered person or a person to whom a Unique Identity Number has been issued shall inform the proper officer of any changes in the information furnished at the time of registration within 15 days of the said changes.
• The proper office may approve or reject the amendment in the registration of such particulars but the proper officer shall not reject the application for registration without giving the person an opportunity of being heard.

Section 23: Person Not Liable for Registration

• If person is engaged exclusively in the business of supplying goods and/or services that are neither not liable to tax or are wholly exempt from tax under the GST Act
• An agriculturist to the extent of supply of produce out of cultivation of land.

The government from time to time has through notifications specify category of persons not liable for registration. Some of them are discussed below:

• If a person is ONLY engaged in making supply, the tax on which to be paid by the recipient under RCM as per Sec 9(3)
• Suppliers providing services through an ecommerce platform
• Casual taxable person making taxable supplies of handicraft goods.
• Job worker providing inter-state supply to a registered person not liable to be registered u/s 22(1) or who opt to take registration voluntarily u/s 25(3) or who is involved in making supply of service in relation to the goods

(All the above services are exempt if the aggregate turnover does not exceed the prescribed limit)

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