Summary: The Goods and Services Tax (GST) registration process is governed by Chapter III of the CGST Act and its related rules. Any individual or entity liable for GST must apply for registration within 30 days of becoming liable using FORM GST REG-01. Applicants must provide key details, including their PAN, email, and mobile number. Upon verification, a Temporary Reference Number (TRN) is issued, and the applicant can complete the registration by submitting Part B of the form along with required documents. The registration is granted after verification by the Central Processing Cell (CPC). For additional clarification, FORM GST REG-03 may be issued by the proper officer. Special rules apply to non-residents and casual taxable persons, requiring registration at least five days before commencing business. Further, businesses with multiple locations in a state may require separate registrations, subject to specific conditions. Provisions are also made for suo moto registration and those required to deduct or collect tax at source. In case of physical verification of business premises, a report must be submitted within 15 days. GSTIN is provided after successful registration completion, and forms for cancellation, amendment, or extension are available for specific scenarios.
Chapter III deals with registration [Rule 8-26]. Any person can apply for GST Registration in FORM GST REG-01 in every State or Union territory in which he is liable, within thirty days from the date on which he becomes liable to registration. The applicant has to declare his Permanent Account Number (PAN), mobile number, e-mail address and place of registration in Part A of Form GST REG-01 at the GST common portal and on successful verification, a Temporary Reference Number (TRN) is generated. Using the Temporary Reference Number (TRN), the applicant has to submit an application in Part B of Form GST REG-01 with required documents at the common portal duly signed and verified with Digital Signature. The proper officer at Central Processing Cell (CPC) examines the application and the documents and if the same are found to be in order, shall approve the grant of registration to the applicant. While examining, if the officer requires any additional information/ document/ clarification, notice in Form GST REG-03 will be issued. On verification, the proper officer shall issue certificate of registration in Form GST REG-06 as per Rule 10.
After a certificate of registration in FORM GST REG-06 has been made available on the common portal and a Goods and Services Tax Identification Number has been assigned, the registered person, except those who have been granted registration under rule 12 or, as the case may be rule 16, shall [within a period of thirty days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using invoice furnishing facility, whichever is earlier, furnish information with respect to
details of bank account on the common portal].
[Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.]
Furnishing of Bank Account Details as per Rule 10A
Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business under sub-section (2) of section 25 shall be granted separate registration in respect of each such place of business subject to the following conditions, namely: –
(a) such person has more than one place of business as defined in clause (85) of section 2;
(b) such person shall not pay tax under section 10 for any of his places of business if he is paying tax under section 9 for any other place of business;
(c) all separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply, as the case maybe, for such supply.
Explanation.– For the purposes of clause (b), it is hereby clarified that where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section. [ As per Rule 11 Separate registration for multiple places of business within a State or a Union territory].
Total 31 forms/ formats have been prescribed in the GST Rules, for every process in the registration chain such as application for registration, acknowledgment, query, rejection, registration certificate, show cause notice for cancellation, reply, cancellation, amendment, field visit report etc., which are standard formats. Strict timelines have been stipulated for completion of different stages of registration process. (Rule 8 of CGST Rules, 2017)
In accordance with the provisions of Section 25 of CGST Act, 2017 read with Rule 8 of CGST Rules, 2017 an application in FORM GST REG-01 has to be submitted online through the common portal Goods and Services Tax Network (GSTN) within thirty days from the date when liability to register arose. The casual and non-resident taxable persons need to apply at least five days prior to the commencement of the business. (Section 25 of CGST Act, 2017)
A transferee or the successor of a business on-going concern basis shall be liable to be registered with effect from the date of such transfer or succession. In a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or demerger of two or more companies by an order of a High Court, the transferee shall be liable to be registered with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court. This means that the Registration Certificate issued to a person is not transferable to any other person. (Rule 9 of CGST Rules, 2017) (Section 27 of CGST Act, 2017)
The proper officer shall examine the application and the accompanying documents and if the same are found to be in order, approves the grant of registration to the applicant within a period of seven working days from the date of submission of the application as per Rule 9 of CGST Rules, 2017 [Rule 9. Verification of the application and approval]. A person applying for registration as a casual taxable person [CTP ] shall be given a temporary reference number by the common portal for making advance deposit of tax in accordance with the provisions of Section 27. An acknowledgement shall be issued electronically to the applicant in FORM GST REG-02 only after the said deposit.
Where the application is found to be deficient, or where the Proper Officer requires any clarification, Proper Officer may issue a notice in FORM GST REG-03 within a period of seven working days from the date of submission of the application as per Rule 9(2) of CGST Rules, 2017 and the applicant shall furnish such clarify cation, information or documents electronically, in FORM GST REG-04, within a period of seven working days from the date of the receipt of such notice as per Rule 9(4) of CGST Rules, 2017. (Rule 9(2) read with rule 9(4) of CGST Rules, 2017)
However, if the applicant fails to undergo authentication of Aadhaar number or does not opt for authentication of Aadhaar number; or having undergone authentication of Aadhaar, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or the Proper Officer deems it fi t to carry out physical verification of places of business, the notice in FORM GST REG-03 may be issued not later than thirty days from the date of submission of the application as per Rule 9(2) of CGST Rules, 2017. (Rule 9(2) of CGST Rules, 2017)
The provisions of Aadhaar authentication are not applicable to a person who is:
(a) not a citizen of India; or
(b) a department or establishment of Central or State Government; or
(c) a local authority; or
(d) a statutory body; or
(e) a PSU; or
(f) a person applying for registration under Section 25 (9) of the CGST Act, 2017. (Section 25(9) of CGST Act, 2017)
(a) any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries; and
(b) any other person or class of persons, as may be notified by the Commissioner, shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services or both received by them, as may be prescribed.
Where the Proper Officer is satisfied with the clarification, information or documents furnished by the applicant, he may approve the grant of registration to the applicant within a period of seven working days from the date of the receipt of such clarification or information or documents as per Rule 9(3) of CGST Rules, 2017. (Rule 9(3) of CGST Rules, 2017)
Where no reply is furnished by the applicant in response to the notice or where the Proper Officer is not satisfied with the clarification, information or documents furnished, he may for reasons to be recorded in writing, reject such application and inform the applicant electronically in FORM GST REG-05 as per Rule 9(4) of CGST Rules, 2017. (Rule 9(4) of CGST Rules, 2017)
If the Proper Officer fails to take any action within the aforementioned timelines, the application for grant of registration shall be deemed to have been approved as per Rule 9(5) of CGST Rules, 2017. (Rule 9(5) of CGST Rules,2017)
Physical verification (PV) in connection with registration: Where the proper officer is satisfied that the physical verification of the place of business of a person is required after the grant of registration, he may get such verification of the place of business done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification as per Rule 25 of CGST Rules, 2017. (Rule 25 of CGST Rules, 2017)
Where the application for grant of registration has been approved under Rule 9 of CGST Rules, 2017, a certificate of registration in FORM GST REG-06 showing the principal place of business and additional place or places of business shall be made available to the applicant on the common portal and a Goods and Services Tax Identification Number (GSTIN) shall be assigned. (Rule 9 of CGST Rules, 2017)
Any person required to deduct tax in accordance with the provisions of Section 51 of the CGST Act, 2017 or collect tax at source in accordance with the provisions of Section 52 of the CGST Act shall electronically submit an application, duly signed or verified through electronic verification code, in form GST REG-07 for grant of registration as per Rule 12(1) of CGST Rules. (Section 51 & 52 of CGST Act, 2017) [Rule 12(1) of CGST Rules, 2017 Grant of registration to persons required to deduct tax at source or to collect tax at source.]
When the proper officer is satisfied that the TDS Deductors/ TCS collector is no longer liable to deduct TDS or TCS, then the proper officer may cancel the GST registration and inform the same to the TDS Deductors/ TCS collector in Form GST REG-08 as per Section 52 of CGST Act, 2017. (Section 52 of CGST Act, 2017)
As per Section 24 of the Central Goods and Services Tax Act, 2017, any non-resident taxable person [NRTP] engaged in providing taxable supply is compulsorily required to obtain GST registration. In order to obtain GST registration, the non-resident taxable person is required to electronically fi le an application in Form GST REG-09. [Section 24 of CGST Act, 2017 read with Rule 13 Grant of registration to non-resident taxable person]
As per Section 24 of the CGST Act, 2017 the person engaged in supplying ‘online information and database access or retrieval services’[OIDAR] to obtain compulsory registration, when the services are supplied from a place outside India to a person in India (other than a registered person). Such a person can obtain GST registration by filing an application in Form GST REG-10 [Section 24 read with Rule 14].
The casual taxable person and/or a non-resident taxable person willing to extend his GST registration is required to file an application in Form GST REG-11 as per Rule 15 of the CGST Rules, 2017. (Rule 15 of the CGST Rule, 2017)
Suo moto registration. –
(1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG-12 .
(2) The registration granted under sub-rule (1) shall be effective from the date of such order granting registration.
(3) Every person to whom a temporary registration has been granted under sub-rule (1) shall, within a period of ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 8 or rule 12:
Provided that where the said person has filed an appeal against the grant of temporary registration, in such case, the application for registration shall be submitted within a period of thirty days from the date of the issuance of the order upholding the liability to registration by the Appellate Authority.
(4) The provisions of rule 9 and rule 10 relating to verification and the issue of the certificate of registration shall, mutatis mutandis, apply to an application submitted under sub-rule (3).
(5) The Goods and Services Tax Identification Number assigned, pursuant to the verification under sub-rule (4), shall be effective from the date of the order granting registration under sub-rule (1).[ Rule 16.]
Assignment of Unique Identity Number to certain special entities. –
(1) Every person required to be granted a Unique Identity Number in accordance with the provisions of sub-section (9) of section 25 may submit an application electronically in FORM GST REG-13, duly signed or verified through electronic verification code, in the manner specified in rule 8 at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
The Unique Identity Number granted under sub-rule (1) to a person under
clause (a) of sub-section (9) of section 25 shall be applicable to the territory of India.]
(2) The proper officer may, upon submission of an application in FORM GST REG-13 or after filling up the said form 32 [or after receiving a recommendation from the Ministry of External Affairs, Government of India], assign a Unique Identity Number to the said person and issue a certificate in FORM GST REG-06 within a period of three working days from the date of the submission of the application .[Rule 17]
Display of registration certificate and Goods and Services Tax Identification Number on the name board. –
(1) Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or places of business.
(2) Every registered person shall display his Goods and Services Tax Identification
Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business.[ Rule 18]
FUNCTIONS OF CENTRAL PROCESSING CELL OFFICERS
The registration applications fi led at the GST common portal (GSTN) are forwarded to the Central and State tax authorities as per GST Law and defined algorithms. The applications will be routed to the concerned CPC zone based on the address of the principal place of business.
The CPC officer views the application falling under category either ‘With PV or ‘without PV’. If the Aadhar has not been authenticated while fi ling for registration then the application will land on the dashboard under category ‘with PV’. Even, if the Aadhar has been authenticated, based on data analysis and risk parameters, certain applications will land on the CPC dashboard under category ‘with PV’.
CPC views the attached documents and can either approve or raise query within 7 working days (if application falling under ‘without PV’ category). If no response to query is received within next 7 working days or the response to query is not satisfactory, the officer can reject the application. In other cases, CPC verifies the attached documents and can either approve or raise query within 30 days (if application falling under ‘with PV’ category). If no response to query is received within next 7 working days or the response to query is not satisfactory, the officer can reject the application.
Registration application sent to Divisional AC/DC for physical verification. If the physical verification report is not sent to CPC within thirty days from the date of submission of the application so as the notice in FORM GST REG-03 may be issued not later than thirty days from the date of submission of the application, it will get deemed approved. A detailed Standard Operating Procedure dated 27.11.2020 has been issued by GST Policy Wing for verification of taxpayers granted deemed registration.
In terms of Rule 25 of CGST Rules, 2017, when the proper officer is satisfied that the physical verification of the place of business of a person is required due to failure of Aadhaar authentication or due to not opting for Aadhaar authentication before the grant of registration, or due to any other reason after the grant of registration, he may get such verification of the place of business, in the presence of the said person, done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification. (Rule 25 of CGST Rules, 2017)
Physical verification of business premises in certain cases –
(i) The Physical Verification is carried out by the Inspector/ Superintendent at Division Level. The CBIC notified the Standard Operating Procedure (SOP) for verification of taxpayers granted deemed registration vide Instruction No. 4/3/2020-GST dated 27.11.2020. After the completion of Physical Verification, the officer has to submit the Visit Report and on the basis of the same the Superintendent shall submit the Physical Verification report in FORM GST REG-30 along with recommendation to CPC for further processing of registration.
(ii) The said Inspector/ Superintendent conduct physical verification of the principal place of business and wherever possible, additional place of business, indicated in GST registration FORM REG-01 of the concerned registrant. During the physical verification, the officer, among other things, would also verify the following details:
(a) In case the applicant intends to carry out manufacturing activity, whether capital goods, if required for the said manufacturing activity, have been installed.
(b) Electricity connection, bills paid in the relevant period.
(c) Size of the premises – whether it is commensurate with the activity to be carried out by the applicant.
(d) Whether premises is self-owned or is rented and documents relating to ownership/ registered lease of the said property. In case of doubt, enquiry may also be made from the landlord/ owner of the property in case of rented / leased premises.
(e) No. of employees already employed and record of their employment.
(f) Aadhaar and PAN of the applicant and its Proprietor, Partners, Karta, Directors as the case may be and the authorised signatories.
(g) Bank’s letter for up-to-date KYC.
(iii) In addition to the physical verification conducted, the said Inspector/ Superintendent, in the interest of revenue, would carry out the preliminary financial verification of the registrants by seeking the following documents and carrying out its scrutiny:
(a) ITRs of the company / LLP from the date of incorporation or for last three
financial years, whichever is less. ITRs of proprietor, partners, Karta, etc. may be taken in other cases.
(b) The status of activity from the date of registration of all the bank account(s) linked to registration;
the same may be taken through a letter / undertaking from the applicant. Phone number declared /linked to each of the bank accounts may also be obtained.
(c) Quantum of capital employed/proposed to be employed.
(d) Out of the amount mentioned at (c) above: (i) Own Funds: (ii) Loan Funds: (indicate the names, complete address, PAN and amount borrowed from each such lender separately):
(e) In case of own funds, also check the audited balance sheet for previous financial year, where available, in addition to the Income Tax Returns mentioned in (a) above.
(f) In case of loan funds check the proposal submitted to the Bank/FI for approval of the loan and the maximum permissible bank fi nance as per such proposal, where the amount is proposed.
Conclusions:-
Under Goods & Services Tax (GST), businesses whose turnover exceeds the threshold limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be, must register as a normal taxable person. For certain businesses, registration under GST is mandatory. Citizen can apply for New GST by Registrating online without Visiting the Govt. office.
Go to the GST portal and click on New Registration under the registration tab. Fill up Part-A of the application form with your basic details and verify your mobile number and email address. You will receive a Temporary Reference Number (TRN) on your mobile and email.
No charges are levied to complete the GST registration process. In case businesses do not complete the registration process, 10% of the amount that is due or Rs.10,000 will be levied. In the case of tax evasion, 100% of the amount that is due will be levied as a penalty.
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