Legal Aspects of registration & Its Verification, Supporting documents, Aadhar Authentication & Biometric verification under CSGT Act, 2017
Summary: The presentation outlines critical aspects of the registration process under the CGST Act, 2017, focusing on applicable sections, verification procedures, and documentation requirements. Sections 22, 23, and 24 specify who must and must not register, with mandatory registration for certain categories like inter-State taxable supply and casual taxable persons. The registration process includes submitting an application within 30 days of becoming liable, with additional provisions for Aadhaar authentication, biometric verification, and alternative identification methods when Aadhaar is unavailable. Notably, Rule 8 and Rule 9 address PAN validation, Aadhaar authentication, and the physical verification of business premises. The importance of supporting documents such as tenancy agreements and the relevance of the Registration Act, 1908, for certain property-related documents are also emphasized. The overall process ensures accountability, security, and the maintenance of accurate records in line with GST regulations.
Applicable Sections:
S.22 Persons liable for registration.-
S.23 Persons not liable for registration.-
S. 24:- Compulsory Registration.-
Applicable Sections:
S.22:- Persons liable for registration.-
1. Every supplier Turnover exceeds 20 Lakh. Provided:
i. Special States 10 Lakh.
ii. may enhance limit up to 40 Lakh subject to conditions.
2. Every Person who is registered under existing law.
3. business carried on by a registered taxable person transferred as going concern, transferee liable to register.
4. Transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, 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 or Tribunal.
Section 23. Persons not liable for registration.-
1. The following persons shall not be liable to registration, namely:-
i. any person engaged exclusively in supplying goods or services or both that are not liable to tax or wholly exempt.
ii. an agriculturist, to the extent of supply of produce out of cultivation of land.
2. Govt. may declare class of person exempt from registration.
Section 24. Compulsory registration in certain cases.-
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,-
1. Making inter-State taxable supply;
2. casual taxable persons making taxable supply;
3. persons who are required to pay tax under reverse charge;
4. electronic commerce operator
5. non-resident taxable persons making taxable supply;
Section 25. Procedure for registration.-
Let’s see time limit, conditions and procedure
1. Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration.
Provided that:
i. a casual taxable person or a non-resident taxable person shall apply at least five days prior to the commencement of business:
2. single registration in a State Provided That- Multiple RC may be granted.
3. May apply Voluntary.
4. Multiple GSTIN on same PAN be treated as distinct persons.
5. Multiple establishments shall be treated as establishments of distinct persons.
6. Mandatory having PAN under the Income- tax Act, 1961 (43 of 1961)
Provided that a person liable for TDS may have TAN instead of PAN.
6. A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed:
What if someone don’t have Aadhar..?
Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe:
6. A) Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration.
6. (B) On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification:
Provided that, alternate and viable means of identification shall be provided if Aadhar not assigned
6. (C) every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government may, specify.
6. (C) Provided that, alternate and viable means of identification shall be provided if Aadhar not asigned
7. a non-resident taxable person may be granted registration without Aadhar based on other document as may be prescribed.
8. If anyone liable but fails to obtained RC, officer proceed to registration
9. United Nations Organization or Foreign Embassy shall be granted Unique Identity Number
10. RC or UIN shall be granted or rejected after due verification, within such period as may be
11. RC with effective date as may be prescribed.
12. RC deemed to be granted if application not processed within such time as per S.10
Bored..?
Let’s play with Rules…..!
Rules Applicable to Registration.:-
Rule 8. Application for registration.
Rule 9. Verification of the application and approval. (IMP)
Rule 10B. Aadhaar authentication for registered person.
Rule 25. Physical verification of business premises in certain cases.
These are some important rules which are very helpful to us during RC verification.
Let’s elaborate...
Rules Applicable to Registration.:-
Rule.8:
1 Every person who is liable to be registered under sub-section (1) of section 25 and every person seeking registration under sub-section (3) of section 25 (hereafter in this Chapter referred to as “the applicant”), except–
i. a non-resident taxable person;
ii. a person required to deduct tax at source under section 51;
iii. a person required to collect tax at source under section 52; …….. (continue next page)
iv. a person supplying online information and database access or retrieval services from outside india to a non taxable online recipient referred to in S.14 of IGST, shall, before applying for registration, declare his PAN in Part A of FORM GST REG-01.
2. PAN shall be validated online and shall also be verified through separate OTP sent to the mobile number and email address linked to the PAN. ( This rule not yet notified)
What is S.25(1) & 25(3) referred under rule 8 above..?
S.25(1) covers RC applicable based on turnover limit prescribed under S.22 & Mandatory RC under S.24
(Means every person getting himself registered shall provide PAN, except person who is Non Resident Taxable Person, liable for TDS,TCS and supplying online data access or gaming platform from outside India)
3. After verification of PAN, Mobile Number & Email a TRN shall be communicated.
4. Using TRN applicant shall submit his application along with supporting documents signed using OTP.
A. Applicant shall authenticate Aadhar while submitting RC application and the date of application will be the date of Aadhar authentication or 15 days from submission of application which ever is earlier.
Provided that, who has opted for Aadhar authentication and is identified based on data analysis and risk parameters, shall undergo biometric-based Aadhaar authentication and taking photograph of the applicant
Where applicant is individual, or such individuals in relation to the applicant if applicant is other than individual, along with original copy of the documents uploaded.
4B. After bio-metric authentication ARN shall be generated.
after ARN:-
1. we can see the office to whom RC assigned.
2. Currently only CGST officers have powers to authenticate bio-metric
Rules Applicable to Registration.:-
Rule.9: Verification of the application and approval.
1. After ARN the application shall be forwarded to the officer (SGST or CGST as the case may be) for approval and officer shall process within 7 working days.
Provided that where:-
a) Applicable person fails to authenticate Aadhar or aa) Identified risky by system for physical verification
b) Proper officer proceed for physical verification after approval by officer not below AC.
Grant RC within 30 days from date of submission of application, after physical verification.
What if there is any Deficiency..?
2. If there is any deficiency in terms of any information or any document required to be furnished under the said rule or where officer requires clarification of the same, he may issue notice within 7 working days from ARN and applicant shall furnish clerification within 7 working days from receipt of notice.
Provided that where:-
A person fails to authenticate Aadhar, or A person identified for physical verification After approval from AC or above rank officer….
The notice may be issued not later than 30 days from ARN
3. Officer may approv RC within 7 working days.
4. Where no reply received within 7 days or officer not satisfied with reply, he may reject application with reason recorded in writing.
5. If officer fails to take action within specified period, it is deemed to have been approved.
Rules Applicable to Registration.:-
Rule.25: Physical Verification of POB
1. Where officer satisfied that PV of POB is required after grant of RC, he may get verification of POB done and upload verification report along with documents and photographs within 15 working days from such verification.
(This rule provide powers to verify POB after RC or who is already registered. But subject to specified approval procedure.)
2. Where the PV is required based on risk by portal, before grant of RC officer Shall do PV and upload report at least 5 working days prior to 30 days from ARN.
Rules Applicable to Registration.:-
Rule 10B. Aadhaar authentication for registered person
The registered person to whom the RC has been grnated shall undergo for Aadhar autentication of the person :-
1. Proprietor, in the case of proprietorship firm.
2. any partner, in the case of a partnership firm.
3. the karta, in the case of a Hindu undivided family.
4. the Managing Director or any whole time Director, in the case of a company
5. any of the Members of the Managing Committee, if Association of Persons or Body of Individuals or society.
6. the Trustee in the Board of Trustees, in the case of a Trust and of the authorized signatory,…….
Rules Applicable to Registration.:-
Rule 10B. Aadhaar authentication for registered person for the purposes as specified below:-
1. For filing of application for revocation
2. For filing of refund application.
The end of theory… but not the problems..!
Lets See some Q&A
1. How will I get the information regarding Biometric Aadhaar Authentication while applying for GST registration?
Ans. Once submission of application for RC and PAN validation successful, you will receive an eamil and sms with TRN asking to visit nearest GST Suvidha Kendra for for biometric authentication
2. When I will get ARN?
Ans. The ARN will be communicated after bio metric authentication when it is applicable to you.
Lets See some Q&A
3. What is the validity of the TRN Number?
Ans. 15 days from submission of application and before validation of PAN database. When PAN validation failed and resubmitted after correction, the date will be from the resubmission.
4. Is it mandatory for all the applicants to get Biometric Aadhaar Authentication?
Ans. No. based on risk parameters.
5. Am I need to authenticate again and again?
Ans. No. Once Biometric is done, then the taxpayer doesn’t need to do it again for other applications.
Supporting documents required for RC
Provisions to be considered for supporting documents. The Maharashtra Rent control Act, 1999.
Section 55. Tenancy agreement to be compulsorily registered.
Notwithstanding anything
contained in this Act or any other law for the time being in force, any agreement for leave and licence or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of this Act, shall be in writing and shall be registered under the Registration Act, 1908 (XVI of 1908)
Provisions to be considered for supporting documents. Registration Act, 1908.
17. Documents of which registration is compulsory.
The following documents shall be registered,
(a) instruments of gift of immovable property;
(b) other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
(c)….. Not relevant to GST
(d) leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent;
Provided that the 2
[State Government] may, by order published in the 3 [Official Gazette], exempt from the operation of this sub-section any lease executed in any district, or part of a district, the terms granted by which do not exceed five years and the annual rents reserved by which do not exceed fifty rupees.
18. Documents of which registration is optional:-
(c) leases of immovable property for any term not exceeding one year, and leases exempted under section 17;
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