CA Akarsh Gupta

CA Akarsh GuptaIntroduction:

This article tries to provide you with a one-stop solution for all the most important, most crucial queries you have regarding registration under the GST regime. All the frequently asked questions of general public are accumulated and assimilated into one place which anyone could refer. The answers are as per the current regime and any possible changes or relief in the future in any of the provisions of the GST law may render a change in the answer. Moreover, we suggest these answers should be augmented with a simultaneous reading of the bare acts and rules.

Set of Scrutinised Answers:

S.no Questions Answers
1. What is advantage of taking registration in GST? Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:

Legally recognized as supplier of goods or services.

Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.

Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

Getting eligible to avail various other benefits and privileges rendered under the GST laws.

2. Can a person without GST registration claim ITC and collect tax? No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
3. What will be the effective date of registration? Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date on which he became liable for registration.

Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.

In case of a person taking 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.

4. Who are the persons liable to take a Registration under the GST Law? As per Section 22 of the CGST/SGST Act 2017, every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over 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.

In case of eleven special category states (as mentioned in Art. 279A(4)(g) of the Constitution of India), this threshold limit for registration liability is ten lakh rupees.

Besides, Section 24 of the Act mentions certain categories of suppliers, who shall be liable to take registration even if their aggregate turnover is below the said threshold limit of 20 lakh rupees.

On the other hand, as per Section 23 of the Act, an agriculturist in respect of supply of his agricultural produce; as also any person exclusively making supply of non-taxable or wholly exempted goods and/or services under GST law will not be liable for registration.

In addition, the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 CGST Act as the category of persons exempted from obtaining registration under the aforesaid Act.

5. Does aggregate turnover include value of inward supplies received on which RCM is payable? Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
6. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership? New registration would be required as partnership firm would have new PAN.
7. A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration? He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies.
8. Can we continue using provisional GSTIN or do we get new GSTIN? Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.
9. Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law? If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
10. Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply? Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. (Section 2(78) of the CGST Act.)
11. Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice? A supplier of service will have to register at the location from where he is supplying services.
12. Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge? Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
13. If there are two SEZ units within same state, whether two registrations are required to be obtained? SEZs under same PAN in a state require one registration. (Proviso to CGST Rules)
14. Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration? Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
15. When is registration in other state required? Will giving service from one state to other state require registration in other state? If services are being provided from one state then registration is required to be taken only in that state and IGST to be paid on inter-state supplies.
16. I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure? A separate & new registration is required for ISD. New registrations are now open on GST portal
17. I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
18. I have ST number on individual name and have migrated to GST.I wish to transfer this on my proprietorship firm. This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
19. Please tell if rental income up to 20 lacs attracts GST or attracts any other charge? GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added
20. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs? A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
21. Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover > 20/10 Lakh? There is no liability of registration if the person is dealing with 100% exempt supplies.
22. If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration? Yes, you would be treated as a normal taxable person and would require to pay tax from the first supply you make post registration
23. Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)? Separate registration as tax deductor is required. This will be be triggered once the provisions regarding the same are made applicable by the concerned authorities.
24. Is separate registration required for trading and manufacturing by same entity in one state? There will be only one registration per State for all activities/supplies.
25. I am registered in Delhi and getting the service from unregistered dealer of UP, should I take registration in UP to discharge GST under RCM? Any person who makes make interstate taxable supply is required to take registration. Therefore in this case the UP dealer shall take registration and pay tax as it making an inter-state taxable supply.
26. Is there any concept of area based exemption under GST? There will be no area based exemptions in GST.
27. If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice? Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Maharashtra is sufficient (and pay IGST on supplies made from Mumbai to Delhi)
28. How long can I wait to register in GST? An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.
29. What If I am not liable to register under GST but I was registered under Service tax? You can apply for cancellation of Provisional ID under the GST regime.
30. Will turnover of agents be added to that of the principal for registration? No.
31. If I am not an existing taxpayer and wish to newly register under GST, when can I do so? You can apply for new registration at the GST Portal www.gst.gov.in
32. What is aggregate turnover? As per section 2(6) of the CGST/SGST Act “aggregate turnover” includes the aggregate value of:

(i) all taxable supplies,

(ii) all exempt supplies,

(iii) exports of goods and/or service, and,

(iv) all inter-state supplies of a person having the same PAN.

The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act, UTGST Act, and the IGST Act.

 

Aggregate turnover shall include all supplies made by the Taxable person, whether on his own account or made on behalf of all his principals. Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies.

 

The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal.

33. Which are the cases in which registration is compulsory? As per Section 24 of the CGST/SGST Act, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:

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i) persons making any inter-State taxable supply;

ii) casual taxable persons;

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

iv) electronic commerce operators required to pay tax under sub-section (5) of section 9;

v) non-resident taxable persons

vi) persons who are required to deduct tax under section 51;

vii) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;

viii) Input service distributor (whether or not separately registered under the Act)

ix) persons who are required to collect tax under section 52;

x) every electronic commerce operator

xi) every person supplying online information and data base 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 Central Government or a State Government on the recommendations of the Council.

34. What is the time limit for taking a Registration under GST for a casual taxable person and non-resident person? A Casual Taxable person and a non-resident taxable person should apply for registration at least 5 days prior to commencement of business.
35. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration? No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 22 of the CGST/SGST Act.
36. Whether a person having multiple business verticals in a state can obtain for different registrations? Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
37. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration? Yes. As per Section 25(6) of the CGST/SGST Act every person shall have a Permanent Account Number issued under the Income Tax Act, 1961(43 of 1961) in order to be eligible for grant of registration.

 

However as per the proviso to the aforesaid section 25(6), a person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration.

 

Also, as per Section 25(7) PAN is not mandatory for a non resident taxable person who may be granted registration on the basis of any other document as maybe prescribed.

38. Whether the Department through the proper officer, can suo-moto proceed to register of a Person under this Act? Yes. In terms of sub-section (8) of Section 25, where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as is prescribed in the Registration rules.
39. Whether the proper officer can reject an Application for Registration? Yes. In terms of sub-section 10 of section 25 of the CGST/SGST Act, the proper officer can reject an application for registration after due verification.
40. Whether the Registration granted to any person is permanent? Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
41. What is the responsibility of the taxable person supplying to UN bodies? The taxable supplier supplying to these organizations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier
42. Is it necessary for the Govt. Organization to get registration? A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.
43. Existing taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration?

 

For every State, a fresh registration is needed.
44. A firm dealing exclusively in exempted products has GST registration. Does it need to file return?

 

If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.
45. My all outward supplies are export services. In such case is it compulsory to register under GST?

 

Yes. Since exports are zero-rate, One needs to register under GST to claim refunds.
46. Is a job-worker required to register? Whether composition scheme is available to a job-worker?

 

Job-workers making taxable supplies above the threshold aggregate turnover need to register. Composition scheme is not available to job-workers.
47. If I register under the composition scheme, can I opt out of it later? What happens to my stock if I do so?

 

Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switch over in terms of Section 18(1)(c ) of CGST Act, 2017.
48. Can I register as a normal taxable person now and avail of the composition scheme later?

 

You can opt for composition scheme from the beginning of the next financial year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.
49. If I was registered earlier but not required to register under GST, what to do about provisional ID and accumulated ITC?

 

Please apply for cancellation of registration under Section 29(1) of the CGST Act, 2017 read with Rule 24(4) of CGST Rules, 2017. You will be required to calculate and pay ITC availed on goods held in stock on the date of cancellation of registration.
50. I have registered as a composition dealer. If my turnover crosses Rs. 75 lakh, can I continue in the scheme for the remaining part of the financial year?

 

No, a taxpayer becomes ineligible for composition scheme on the day his turnover crosses Rs. 75 Iakh.
51. I was registered under Central Excise or Service Tax, but could not migrate and therefore have taken a new registration. Will I be eligible for transitional credit?

 

In your new registration application, if you have referred to your past registration no. Of Central Excise or Service Tax, you will be eligible for transitional credit under Section 140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017
52. I have not received ARN or have received ARN but not GSTIN, how do I supply goods or services or both? (Most Important question going on in everyone’s mind)

 

You can supply goods or services or both on bill of supply without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon.
53. I am a supplier of exempted goods based out of Delhi and procure raw material from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for procurement of Inter-State goods. Is he right?

 

No, since you are dealing in 100% exempted supplies, you are not liable to be registered under GST. There is no requirement of registration for making Inter-State purchases.
54. Who is a Casual Taxable Person? Casual Taxable Person has been defined in Section 2 (20) of the CGST/SGST Act meaning a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, whether as principal, or agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
55. Who is a Non-resident Taxable Person? In terms of Section 2(77) of the CGST/SGST Act, a non-resident taxable person means any person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
56. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident Taxable person? In terms of Section 27(1) read with proviso thereto, the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.
57. Is there any Advance tax to be paid by a Casual Taxable Person and Non-resident Taxable Person at the time of obtaining registration under this Special Category? Yes. While a normal taxable person does not have to make any advance deposit of tax to obtain registration, a casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration is required, in terms of Section 27(2) read with proviso thereto, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought.
58. Whether Amendments to the Registration Certificate is permissible? Yes. In terms of Section 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 will be required 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.

59. Whether Cancellation of Registration Certificate is permissible? Yes. Any Registration granted under this Act may be cancelled by the Proper Officer, in circumstances mentioned in Section 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 (in cases where the cancellation is proposed to be carried out suo moto by the proper officer) or from the date of receipt of application for cancellation (in case where the taxable person/legal heir applies for such cancellation)
60. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also? Yes, the cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act). (Section 29 (4))
61. Can the proper Officer Cancel the Registration on his own? Yes, in certain circumstances specified under section 29(2) of the CGST/SGST Act, the proper officer can cancel the registration on his own. 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 six months, and not commencing business within six months from the date of voluntary registration. However, before cancelling the registration, the proper officer has to follow the principles of natural justice. (proviso to Section 29(2)(e))
62. What happens when the registration is obtained by means of willful mis-statement, fraud or suppression of facts? In such cases, the registration may be cancelled with retrospective effect by the proper officer. (Section 29(2)(e))
63. Is there an option to take centralized registration for services under GST Law? No, the tax payer has to take separate registration in every state from where he makes taxable supplies.
64. Who is an ISD? ISD stands for Input Service Distributor and has been defined under Section 2(61) of the CGST/SGST Act. It is basically an office meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units (having the same PAN) proportionately.
65. Will ISD be required to be separately registered other than the existing tax payer registration? Yes, the ISD registration is for one office of the taxpayer which will be different from the normal registration.
66. Can a tax payer have multiple ISDs? Yes. Different offices of a tax payer can apply for ISD registration.
67. What could be the liabilities (in so far as registration is concerned) on transfer of a business? The transferee or the successor shall be liable to be registered with effect from such transfer or succession and he will have to obtain a fresh registration with effect from the date of such transfer or succession. (Section 22(3)).
68. Whether the job worker will have to be compulsorily registered? No, a Job worker is a supplier of services and will be obliged to take registration only when his turnover crosses the prescribed threshold of 20/10 Lakhs
69. Whether the goods will be permitted to be supplied from the place of business of a job worker? Yes. But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker as his additional place of business.
70. At the time of registration will the assessee have to declare all his places of business? Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST/SGST Act respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.
71. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure? In order to cater to the needs of tax payers who are not IT savvy, following facilities shall be made available: –

Tax Return Preparer (TRP): A taxable person may prepare his registration application /returns himself or can approach the TRP for assistance. TRP will prepare the said registration document / return in prescribed format on the basis of the information furnished to him by the taxable person. The legal responsibility of the correctness of information contained in the forms prepared by the TRP will rest with the taxable person only and the TRP shall not be liable for any errors or incorrect information.

 

Facilitation Centre (FC): shall be responsible for the digitization and/or uploading of the forms and documents including summary sheet duly signed by the Authorized Signatory and given to it by the taxable person. After uploading the data on common portal using the ID and Password of FC, a print-out of acknowledgement will be taken and signed by the FC and handed over to the taxable person for his records. The FC will scan and upload the summary sheet duly signed by the Authorized Signatory.

72. What will be the time limit for the decision on the on line registration application? If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within three common working days. If they communicate any deficiency or discrepancy in the application within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such communication. Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have 7 days from the date when the taxable person communicates removal of deficiencies. In case no response is given by the departmental authorities within the said time line, the portal shall automatically generate the registration.
73. What will be the time of response by the applicant if any query is raised in the online application? If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be communicated to the applicant and to the other tax authority through the GST Common Portal within 3 common working days. The applicant will reply to the query/rectify the error/ answer the query within a period of seven days from the date of receipt of deficiency intimation. On receipt of additional document or clarification, the relevant tax authority will respond within seven common working days from the date of receipt of clarification.
74. What is the process of refusal of registration? In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. As per sub-section (2) of section 26 of the CGST Act, any rejection of application for registration by one authority (i.e. under the CGST Act / SGST Act) shall be deemed to be a rejection of application for registration by the other tax authority (i.e. under the SGST Act / UTGST Act/ CGST Act)
75. Will there be any communication related to the application disposal? The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal. Jurisdictional details would be intimated to the applicant at this stage.
76. Can the registration certificate be downloaded from the GSTN portal? In case registration is granted; applicant can download the Registration Certificate from the GST common portal.
77. Can cancellation of registration order be revoked? Yes, but only in cases where the initial cancellation has been done by the proper officer suo moto, and not on the request of the taxable person or his legal heirs. A person whose registration has been cancelled suo moto can apply to the proper officer for revocation of cancellation of registration within 30 days from the date of communication of the cancellation order. The proper officer may within a period of 30 days from the date of receipt of application for revocation of cancellation or receipt of information/clarification, either revoke the cancellation or reject the application for revocation of cancellation of registration.
78. Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled? Yes, as per Section 29(5) of the CGST/SGST Act, every registered taxable person whose registration is cancelled shall pay an amount, by way of debit in the electronic cash/credit ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher

Courtesy: CBEC

(The author is a practising Chartered Accountant based in Delhi and can be reached at guptaakarsh92@gmail.com or +91 9717244288)

Disclaimer: The contents of this document are solely for informational and educational purpose. The questions and answers have been collected and republished from the govt. website. While due care has been taken in preparing the above article, possibility of any errors and omissions cannot be ruled out.

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One response to “GST Registration: Set of Scrutinised Answers”

  1. Akash Dhanania says:

    What is the definition of financial year as per GST? Since, GST is applicable from 01.07.2017, then how can assessee determine its liability for registration under GST. Suppose, my firm has been incorporated during the month of Feburary’2017. I have not crossed the limit of 20 lakhs during the period April to June’17. Whethwe i have to take registration under GST?

    If my turnover has crossed on 22.06.2017, and i have not registered under any of the previous act, then when i have to take registration and when not?

    There is a confusion regarding Financial Year.

    Please clarify it.

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