The procedure for GST Registration covers under Section 25, Section 26 and Rule 8 to Rule 11 of CGST Rule 2017. Section wise / Rule wise analysis of registration procedure have been brought out in succeeding Paragraphs.
1. Requirements & Procedure for GST Registration Section 25(1) :
| Section 25(1) | Every person who is liable to be registered under section 22 or 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. |
| Proviso to section 25(1) | Casual Taxable Person: A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. |
| Second Proviso to section 25(1) | SEZ Unit / SEZ Developer A person having a unit in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State – inserted vide CGST (Amendment) Act, 2018 w.e.f. 1-2-2019. |
| Explanation to section 25(1) | Supply from territorial waters Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State where the nearest point of the appropriate baseline is located
Area up to 12 nautical miles belong to State for the purpose of GST |
2. Application for Registration: Rule 8 of CGST Rules :
| Rule 8(1) | Every person applying for registration shall, before applying for registration, declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the Common portal
Such an application is not required for – (a) a person required to deduct tax at source under section 51 (b) a person required to collect tax at source under section 52 and (c) a person supplying OIDAR services from a place outside India to a non-taxable online recipient. Different provisions have been made under the GST Act for such persons. |
| Proviso to Rule 8(1) | Input Service Distributor shall make a separate application for registration as Input Service Distributor.
A person can have multiple ISD registrations at different offices – FAQ issued by CBI&C dt 15-12-2018 |
|
Rule 8(2) |
Validation of details and the temporary number
The PAN shall be validated online by the Common Portal from the database maintained by CBDT. The mobile number declared shall be verified through a one-time password sent to the said mobile number. The e-mail address declared shall be verified through a separate onetime password sent to the said e-mail address |
|
Rule 8(3) |
On successful verification of the PAN, mobile number and e-mail address, a temporary reference number shall be generated and communicated to the applicant on his mobile number and e-mail address. |
|
Rule 8(4) |
Submission of the application after verification of mobile and e-mail address – Using the reference number generated as above, the applicant shall electronically submit an application in Part B of Form GST REG-01, duly signed or verified through Electronic Verification Code (EVC – Aadhaar based), along with documents specified in that Form at the Common Portal |
| Rule 8(4A) | Aadhaar Authentication: The applicant shall, while submitting an application, undergo authentication of Aadhaar number for grant of registration with effect from 01.04.2020 |
| Rule 8(5) | On receipt of an application, an acknowledgment shall be issued electronically to the applicant in form GST REG–02 |
|
Rule 8(6) |
Provision in respect of casual taxable person – A person applying for registration as a casual taxable person shall be given a temporary reference number by the Common Portal for making an advance deposit of tax. The acknowledgment under rule 8(5) shall be issued electronically only after the deposit of amount in the electronic cash ledger. |
3. Authentication Process :
| 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: |
| Section 25(6A) | Existing registered persons will have to get verified through Aadhaar number in a phase manner – inserted vide Finance (No. 2) Act, 2019 w.e.f 01.01.2020 |
| Section 25(6B) | In phase 1, Aadhaar number is made mandatory for fresh registration inserted vide Finance (No. 2) Act, 2019 w.e.f 01.01.2020.
A screen will be provided for e-KYC authentication for Aadhaar |
| Notification No. 18/2020 dated 23.03.2020 notified the date from which an individual shall undergo authentication of Aadhaar Number. Such a notified date is 01 April 2020. | |
| Section 25(6C)
|
For other than an individual ( partnership firm, company, trust, HUF, AOP, etc ) the authentication will be by verification of Aadhaar number of partner, director, trustee, authorized representative, managing committee member or Karta of HUF- inserted vide Finance (No. 2) Act, 2019 w.e.f 01.01.2020
Notification No. 19/2020 – CT dated 23.03.2020 applicable w.e.f. 01.04.2020 |
| If the promoter is not willing to share Aadhaar with Auth Signatory, GST System shall send “link” to the concerned persons at their email and mobile to enter Aadhaar and OTP,
On successful authentication, demographic data of the persons shall be fetched from Aadhaar to GST System The registration process, thereafter, will remain the same as existing |
|
| Section 25(6D)
|
The government can exempt a person or class of persons or any State or Union Territory or part thereof, on the recommendation of GST Council – inserted vide Finance (No. 2) Act, 2019 w.e.f 01.01.2020 |
| Exemption form Aadhar Authentication – The Government vide Notification No. 17/2020 has stated that Provision of Aadhar authentication, shall not apply to a person who is not a citizen of India or to a class of persons other than specified in sec 25 6(A) to 25(6C) of CGST Act. | |
| Where a person, other than those notified under sub-sec (6D) of sec 25 fails to undergo authentication of Aadhaar number), then the registration shall be granted only after physical verification of the principal place of business in the presence of the said person, not later than sixty days from the date of application.- Proviso to Rule 9 | |
4. Verification Procedures Rule 9 of CGST Rules 2017 :
| Rule 9(1) | The application shall be forwarded to the proper officer who shall examine the application and the accompanying documents. If the same is found to be in order, approve the grant of registration to the applicant within three working days from the date of submission of application. |
| Proviso to Rule 9 | In case, a person fails to undergo Aadhaar the registration shall be granted only after physical verification of the principal place of business in the presence of the said person, not later than sixty days from the date of application. |
| Rule 9(2) | If the application is found to be deficient or proper officer requires clarification ,he may issue a notice to the applicant electronically in form GST REG-03 ,within three working days from the date of submission of application.
The applicant shall furnish such clarification, information, or documents sought electronically, in form GST REG-04, within seven working days from the date of receipt of such notice. |
| Rule 9(3) | If the proper officer is satisfied with the clarification or documents furnished by the applicant,he may approve the grant of registration to the applicant within seven working days,from the date of receipt of such clarification or information or documents |
| Rule 9(4) | If no reply is furnished by the applicant or where the proper officer is not satisfied with the clarification, information or documents furnished, he shall, for reasons to be recorded in writing, reject the application for registration under GST and inform the applicant electronically in form GST REG-05 |
| Rule 9(5) | Deemed registration – The application for grant of registration shall be deemed to have been approved, if the proper officer fails to take any action -(a) within three working days from the date of submission of application, or (b)within seven working days from the date of receipt of clarification, information or documents furnished by the applicant. |
5. Registration Certificate Rule 10: A certificate of registration in form GST REG-06 showing the principal place of business and additional place(s) of business shall be made available to the applicant on the Common Portal. The certificate shall be signed by a proper officer. Superintendent of Central Tax is ‘proper officer’ for purpose of rule 9 – CBE&C circular No. 1/1/2017, dated 26-6-2017.
| Rule 10(1) | GSTIN Number – Goods and Services Tax Identification Number (“GSTIN”) shall be assigned in the following format – (a) two characters for the State code (b) ten characters for the PAN or the Tax Deduction and Collection Account Number (c) two characters for the entity code; and(d) one checksum character |
| Rule 10(2) | The effective date of registration – The registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within thirty days from such date. |
| If the application for GST registration is made within 30 days from the date the person was liable to pay GST, he can issue revised invoices for GST for the period prior to registration.- Rule 53(2) of CGST Rule | |
| Rule 10(3) | If the application for registration was submitted by the applicant after the expiry of thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of the grant of registration. |
| Rule 10(4) | Signature on Registration Certificate – Every certificate of registration shall be duly signed or verified through electronic verification code (EVC), by the proper officer. |
| Rule 10(5) | Registration certificate for Deemed Registration: In case of deemed registration, the certificate of registration, duly signed or verified, shall be made available on the common portal within three days after expiry of the period ( 3/7 working days ) specified in rule 9(5). |
6. Bank Accounts Details: The business entities were required to furnish the bank account details and thereafter the businesses could be registered under GST. For opening a bank account, a GST Number/registration certificate was required. Thus, bank accounts could not be opened prior to the GST registration of businesses.
6.1 The GSTN Council took note of these difficulties faced by the businesses and removed this prerequisite for registration, The CBIC vide notification no. 31/2019 – Central Tax dated 28th June 2019 notified the Central Goods and Service Tax (Fourth Amendment) Rules, 2019. And inserted a new rule 10A :-
| Rule 10 A | The registered person shall furnish details of bank account earlier of the following:-
within 45 days of obtaining GST REG-06 on the common portal or the date on which the return required under Section 39 is due to be furnished. Those registered under rule 12 [TDS or TCS] or rule 14 [OIDAR services] are not required to submit these details |
7. Multiple GST Registrations
| Section 25(2) | A person seeking registration under this Act shall be granted a single registration in a State. |
| For the period 01.07.2017 to 31.01.2019 – A person having multiple business verticals in a State may be granted a separate registration for each business vertical. The provision in respect of separate registration for different ‘business vertical’ has been omitted vides CGST (Amendment) Act, 2018 w.e.f. 1-2-2019.
W.e.f. 01.02.2019: A person having multiple places of business in a state or union territory may be granted a separate registration for each such place of business, subject to the prescribed conditions. Procedure for obtaining multiple registrations for different places within a State or Union Territory have been specified in Rule 11 of CSGT Rules |
|
| Rule 11 | Conditions for obtaining multiple registrations within a State:
More than one place of business in a State as defined in section 2(85) of the CGST Act. None of the business is registered under composition scheme under sec 10. All separately registered places of business of such person shall pay tax under the Act on supply to another registered place of business and issue a tax invoice or a bill of supply, as the case may be, for such supply. |
| Explanation to Rule 11(1) | where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10 (composition scheme), all other registered places of business of the said person shall become ineligible to pay tax under the said section.- inserted w.e.f. 1-2-2019 |
| Rule 11(2) | A registered person opting to obtain separate registration for a place of business shall submit a separate application in FORM GST REG-01 in respect of such place of business – inserted w.e.f. 1-2-2019 |
| Rule 11(3) | The provisions of rule 9 and rule 10 of CGST Rules relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under rule 11 |
| Section 25 (4) | A person who has obtained or is required to obtain more than one registration, whether in one State or more than one State shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. |
| Section 25 (5) | If a person obtains separate registration with same PAN number within State, these will be treated as establishments of distinct persons for the purposes of CGST Act
They will be treated as separate taxable persons for all purposes of GST, including free supply, tax invoice, job work, returns, payment of taxes, etc |
8. Voluntary Registration Section 25(3) A person, though not liable to be registered under section 22 (thresh hold limit) or sec 24 (compulsory registration) may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
9. Non-Resident taxable person – Section 25(7) A non-resident taxable person may be granted registration on the basis of any other document as may be prescribed.
10. Suo Motto Registration – Section 25 (8) Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may proceed to register such person
11. Unique Identity Number (UIN)
| Section 25(9)
Section 25(10) Section 25(11) Section 25(12) Section 26(1) Section 26(2) |
Any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries and any other person or class of persons as may be notified by the Commissioner shall be granted a Unique Identity
The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period prescribed under Rule 9 A certificate of registration shall be issued in such form and with effect from such date as may be prescribed under Rule 10 of CGST Rules. A registration or a Unique Identity Number shall be deemed to have been granted after the expiry of the period prescribed under Rule 9 , if no deficiency has been communicated to the applicant within that period. Registration or UIN under SGST shall be deemed to be registration under CGST also, unless the application for registration has been rejected under section 25(10) Any rejection of application for registration or the Unique Identity Number under the CGST Act/SGST Act shall be deemed to be a rejection of application for registration under the SGST Act/CGST Act |
12. Special provisions relating to Casual Taxable Person and Non-resident Taxable Person :
| Section 27(1)
proviso to section 27(1) |
The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and such person shall make taxable supplies only after the issuance of the certificate of registration:
Provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding ninety days |
| Section 27(2)
proviso to section 27(1) |
A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration 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:
Provided that where any extension of time is sought as casual taxable person , such person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought |
| Section 27(3) | The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilized in the manner provided under section 49 |
13. Display of Registration Certificate and GSTIN 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.
13.1 Every registered person shall display his GSTIN 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 of CGST Rules, 2017
14. Part 18 of the series will cover the topic Amendment of Registration under section 27 of CGST Act 2017
Suggestions and feedback to improve the task are welcome. The author can be approached at caanitabhadra@gmail.com.
Author Bio
Dear Ma’am,
In case of place of business is on consent basis, is it required to notarize the consent letter? The GST officer has sent a notice asking for notarized consent letter
Artical is well written and covers all aspect of the subject and helps to understand the issue .
Thanks