GST Registration Provisions

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.

GST means:-

It 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.

NEED AND ADVANTAGES OF GST REGISTRATION

Registration will confer the following advantages to a taxpayer:

• He is legally recognized as supplier of goods or services.
• He is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients.
• He can claim input tax credit of taxes paid and can utilize the same for payment of taxes due on supply of goods or services.
• Seamless flow of Input Tax Credit from suppliers to recipients at the national level.

PERSONS LIABLE FOR GST REGISTRATION [SECTION 22]

Threshold limit for registration [Section 22(1)]

Every supplier shall be liable to be registered under this Act-

• in the State or Union territory,
• other than special category States,
• from where he makes a taxable supply of goods or services or both,

if his aggregate turnover in a financial year exceeds twenty lakh rupees.

However, where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

COMPULSORY GST REGISTRATION IN CERTAIN CASES [SECTION 24]

Notwithstanding anything contained in Section 22(1), the following categories of persons shall be required to be registered under the GST Act,–

(i) persons making any inter-State taxable supply;

(ii) casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under Section 9(5);

(v) non-resident taxable persons making taxable supply;

(vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registered under this Act;

(ix) persons who supply goods or services or both, other than supplies specified under Section 9(5), through such electronic commerce operator who is required to collect tax at source under section 52;

(x) every electronic commerce operator;

(xi) 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

(xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.

PROCEDURE FOR GST REGISTRATION [Section 25]

Procedure for registration {Section 25(1)]

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 so liable within thirty days from the date on which he becomes liable to registration,

in such manner and subject to such conditions as may be prescribed.

However, a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.

Explanation — Every 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.

Note:- The term “casual taxable person” is defined under section 2 (20) of CGST Act. The term “non-resident taxable person” is defined under section 2 (77) of CGST Act.

Only one registration to be granted in a State or UT [Section 25(2)]

A person seeking registration under this Act shall be granted a single registration in a State or Union territory.

However, 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.

All the provisions of Act, as are applicable to a registered person, are applicable to the person getting registered voluntarily [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.

Every registration to be treated as distinct person in case of a person having more than one registration [Section 25(4)]

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 GST Act, 2017.

Establishment of same person in different states to be treated as establishment of distinct person [Section 25(5)]

Where a person who has obtained or is required to obtain registration in a State or Union territory in respect

of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act.

PAN necessary for getting GST registration [Section 25(6)]

Every person shall have a Permanent Account Number issued under the Income-tax Act, 1961 in order to be

eligible for grant of registration:

However, a person required to deduct tax under section 51 may have, in lieu of a Permanent Account

Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.

RATES OF GST

India has adopted multi rate GST structure. Goods have been divided into 6 Schedules for GST rates purposes which are as under:

SCHEDULE I II III IV V VI

No. Of Goods	263	242	453	228	18	3
GST Rates                  (CGST & SGCT)	5%	12%	18%	28%	3%	0.25%

There is NIL rate of tax also. These rates will apply to IGST also. CGST and SGST rate are same (equal).

IGST rate is equal to CGST+SGST rate.

The Government is in the process of rationalizing the rates, as suggested in GST Council meetings, and thus various items are subject to change in rate bracket.

 For Example:-  Rajesh, a dealer in Maharashtra sold goods to Anand in Maharashtra worth Rs. 10,000.

The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%, in such case the dealer collects

`1800 and `900 will go to the central government and ` 900 will go to the Maharashtra government.

Again, if Rajesh sells goods to dealer in Delhi worth `10,000. This being an inter- state transaction, the dealer will charge IGST at the rate of 18% and the amount collected `1800 will go the central government and will later be apportioned between the union and the states on the recommendation of the GST Council.

There is a special rate of 0.25% for rough diamonds and 3% for Gold, silver and jewellery, platinum, imitation jewellery, pearl, diamond, synthetic stone.

In addition, there will be GST Compensation cess on Aerated waters, cigarettes, tobacco and tobacco products, coal, peat, lignite and motor vehicles.

The GST would replace the following taxes:

(i) taxes currently levied and collected by the Centre:

1. Central Excise duty

2. Duties of Excise (Medicinal and Toilet Preparations)

3. Additional Duties of Excise (Goods of Special Importance)

4. Additional Duties of Excise (Textiles and Textile Products)

5. Additional Duties of Customs (commonly known as CVD)

6. Special Additional Duty of Customs (SAD)

7. Service Tax

8. Central Surcharges and Cesses so far as they relate to supply of goods and services.

(ii) State taxes that would be subsumed under the GST are:

1. State VAT

2. Central Sales Tax c. Luxury Tax

3. Entry Tax (all forms)

4. Entertainment and Amusement Tax(except when levied by the local bodies)

5. Taxes on advertisements

6. Purchase Tax

Taxes on lotteries, betting and gambling i. State Surcharge sand Cesses so far as they relate to supply of goods and services. The GST Council shall make recommendations to the Union and States on the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed in the GST.

CANCELLATION OF REGISTRATION

The GST law provides for two scenarios where cancellation of registration can take place; the one when the taxable person no more requires it (voluntary cancellation), and another when the proper officer considers the registration liable for cancellation in view of certain specified defaults (Suo-motu cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services. The taxable person desirous of cancellation of Registration will apply on the common portal within 30 days of event warranting cancellation. He will also declare in the application the stock held on the date with effect from which he seeks cancellation. He will also work out and declare the quantum of dues of payments and credit reversal, and the particulars of payments made towards discharge of such liabilities. In case of voluntary registration (taken despite not being liable for obtaining registration), no cancellation is allowed until expiry of one year from the effective date of registration. If satisfied, the proper officer has to cancel the registration within 30 days from the date
of application or the date of reply to notice (if issued, when rejection is concluded by the officer).

REVOCATION OF CANCELLATION

In case where registration is cancelled suo-moto by the proper officer, the taxable person can apply within 30 days of service of cancellation order, requesting the officer for revoking the cancellation ordered by him. However, before so applying, the person has to make good the defaults (by filing all pending returns, making payment of all dues and so) for which the registration was cancelled by the officer.

If satisfied, the proper officer will revoke the cancellation earlier ordered by him. However, if the officer concludes to reject the request for revocation of cancellation, he will first observe the principle of natural justice by way of issuing notice to the person and hearing him on the issue.