In this article, provisions relating to Registration under GST as given (Draft) Model Goods and Services Act, 2016 (“GST Act”) and Draft Goods and Services Tax – Registration Rules (“Rules”) are presented.
Liability to be registered as per Chapter VI of GST Act:
(I) Section 19 – Registration
♠ Person is liable to register under this Act as per Schedule III (Same is discussed below). Registration has to be done in every such state where he is so liable within 30 days from the date on which he becomes liable.
♠ For the persons registered under earlier laws (except Input Service Distributor): Fresh registration under GST in not required and will get automatic registration based on PAN as per the procedure prescribed in Rule 14 of GST Registration Rules. (Same is discussed below in the ‘Rules’ segment)
♠ A person having multiple businesses in the same State may obtain separate registration for each business in accordance with Rule 4 of GST Registration Rules.
♠ Voluntary registration is also available under the GST Regime.
♠ Every person should have PAN as given under Income Tax, to be eligible for registration under GST. For NRI who does not have PAN would be eligible for registration with some other equivalent document as may be prescribed.
♠ Once the registration is accepted, Certificate of registration & Unique Identity Number (GSTIN) shall be granted.
(II) Schedule III – Liability to be registered:
♠ Threshold Limit (As per Draft Model GST Law / As decided by the GST Council in their meeting):
Every Supplier will be liable to register under the Act in the “State” from where he makes a taxable supply of goods and/or services only if his aggregate turnover in a financial year exceeds Rs. 9 Lakhs / Rs. 20 Lakhs. However, this limit is Rs. 4 Lakhs / Rs. 10 Lakhs for the Supplier conducting business in NE states including Sikkim.
Comment: If a supplier’s turnover is less than the threshold limit per annum, he would not be covered under the GST Regime.
Definition of Supplier – Means a person supplying goods and/or services includes agent acting on behalf of the supplier in relation goods and/or services supplied.
Definition of Aggregate Turnover – Means aggregate value of all taxable and non-taxable
♠ Person shall not be liable to registration if his aggregate turnover consists of only goods and/or services which are not liable to tax under this Act.
♠ Persons registered under earlier laws are liable to get register from the effective date (appointed day) of the Act.
♠ Mandatory registration irrespective of threshold limit stated above:
|1.||Person making Inter-State supply.|
|2.||Casual Taxable person:
[Means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business].
|3.||Persons who are required to pay tax under Reverse Charge Mechanism.|
|4.||Non-resident taxable person.
[Means a person who occasionally undertakes transactions involving supply of goods and/or services whether as principal, agent or in any other capacity but has no fixed place of business in India].
|5.||Person who is required to deduct TDS under GST Law (As per Section 37).|
|6.||Person who supplies goods and/or services on behalf of other registered taxable persons. (For E.g. Agent)|
|7.||Input Service Distributor (ISD).|
|8.||Every E-Commerce Operator.
[E-Commerce Operator includes every person who owns, operates or manages an electronic platform that is engaged in facilitating the supply of any goods and/or services or in providing any information or any other services incidental to or in connection therewith]
|9.||Persons who supply goods and/or services (except branded goods) through E-Commerce Operator.|
|10.||An Aggregator supplying services under his brand name or trade name.
[Means a person who owns and manages an electronic platform by means of the application and a communication device which enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the said aggregator]
(III) Section 19A of Chapter VI of GST Act – Special provisions relating to Casual Taxable Person & Non-resident taxable person
♠ Validity period of certificate of registration issued will be only for 90 days and the same can be extended upto 180 days on request to appropriate officer.
♠ If a person is registered under earlier law (except Input Service Distributor), fresh registration under GST in not required and procedure for transformation for such cases would be prescribed in course of time.
♠ At the time of submission of application, Causal Taxable Person or Non-resident Person would be required to advance deposit the estimated tax liability. Such amount deposited shall be deposited in the electronic ledger of such person.
(IV) Section 21 of Chapter VI of GST Act – Provisions relating to Cancellation of registration
♠ Scenarios of Cancellation:-
I. The Officer on his own or on the basis of an application filed by the registered person or by his legal heirs in case of death may cancel the registration on account of following circumstances:
a) Disposal or discontinuance of business or amalgamation or demerger.
b) Change in constitution of the business
c) Person is no longer liable to registered other than voluntarily registered person.
II. The Officer may cancel registration with effect from any anterior date i.e., date earlier than existing date on account of following circumstances:
a) Contravention of the provisions of Act or Rules.
b) Person under composition scheme has not filed returns for 3 consecutive tax periods.
c) Any person other than under composition scheme has not filed returns for a continuous period of 6 months.
III. Where any person has obtained registration by means of fraud, willful misstatement or suppression of facts, the Officer may cancel the registration with retrospective effect.
♠ The cancellation of registration under this section shall not affect the liability of the taxable person to pay tax and other dues for any period before to the date of cancellation as determined.
♠ Stock of Inputs or Work in Progress held by registered taxable person as on the date of cancellation, he will be liable to pay input tax credit availed or output tax payable on that, whichever is higher.
♠ For the capital goods held, the taxable person shall pay the amount of input tax credit availed as reduced by some percentage points as may be prescribed or tax payable on the transaction value of capital goods, whichever is higher.
GST Registration Rules:
♠ GST Registration Rules have been discussed in five segments as follows:
I. Registration of Person existing under earlier laws.
II. New Applicant registration.
III. Amendment of registration.
IV. Cancellation of registration.
V. Revocation of cancellation of registration.
VI. General / Common rules.
♠ Basic Points:
a) All the e-applications discussed in below segment have to be filed at Common Portal either directly or through a Facilitation Centre, as notified by the Board or Commissioner.
b) Digital Signature Certificate (DSC) would be required for e-signing the applications.
Segment I – Registration of Person existing under earlier laws (Central Excise, Service Tax, Respective VAT)
Rule 14 – Procedure for migration of persons registered under earlier law:
Segment II – Procedure of registration of new applicant
Rule 1 – Application for registration for new applicants:
Every person liable to register u/s 19 except 1) Non-resident taxable person, 2) Person who is required to deduct tax u/s 37, 3) E- Commerce Operator is required to follow the below prescribed procedure:
Rule 2 – Verification of the application:
Rule 3 – Registration Certificate:
|Scenario||Effective date of registration|
|In case of application is submitted within 30 days||Date from which the person becomes liable.|
|In case of application is submitted after 30 days||Date of grant of registration certificate.|
Rule 5 – Application of Registration for the person required to deduct tax u/s 37 and E Commerce Operator:
Person who is required to deduct tax u/s 37 and E- Commerce Operator is required to follow the below prescribed procedure:
Rule 8 – Application of Registration for Non-resident taxable person:
Non-resident taxable person is required to follow the below prescribed procedure:
Rule 16 – Extension in period of operation by casual taxable person and non-resident taxable person:
Segment III – Amendment to registration
Rule 9 – Amendment to registration
|Details to be changed||Action|
|Change in Constitution of business resulting in change of PAN Number||Fresh application in Form GST REG-01 and follow procedure thereafter|
|Registered Mobile Number and E-Mail ID||Submit Form GST REG-11 and certificate would get amended only after validation of mobile number or E-mail ID as the case may be.|
|Name of business, Principal place of business, Details of partners, directors, karta, CEO, Board of Trustees as the case may be||Submit Form GST REG-11 and amendment will take effect after verification by Officer and Issue of order by him in Form GST REG-12|
Segment IV – Cancellation of Registration
Rule 11 – Application for cancellation of registration by self:
Rule 12 – Cancellation of registration by Officer:
Segment V – Revocation of cancellation of registration
Rule 13 – Revocation of cancellation of registration:
Segment VI – General / Common rules
Rule 7 – Display of registration certificate and GSTIN:
Rule 17 – Physical verification of business premises in certain cases:
In case the Officer requires the physical verification of business premises before granting registration, he may do so and submit the verification report in Form GST REG-26 in the online portal on the same of day of verification.
Table of List of Forms under GST Registration Rules:
|S. No.||Form Name||Particular|
|1||GST REG-01||Application for Registration u/s 19(1)|
|2||GST REG-02||Acknowledgement of registration.|
|3||GST REG-03||Notice for Seeking Additional Information / Clarification / Documents relating to original application submitted for registration/Amendment/Cancellation|
|4||GST REG-04||Application for filing clarification/additional information/document for Registration/Amendment/Cancellation/Revocation of Cancellation|
|5||GST REG-05||Order of Rejection of Application for Registration / Amendment / Cancellation/ Revocation of Cancellation|
|6||GST REG-06||Registration Certificate issued u/s 19|
|7||GST REG-07||Application for Registration as Tax Deductor or E-Commerce Operator (Tax Collector at Source) u/s 19|
|8||GST REG-08||Order of Cancellation of Application for Registration as Tax Deductor or E-Commerce Operator (Tax Collector at Source) u/s 21|
|9||GST REG-10||Application for Registration for Non Resident Taxable Person.|
|10||GST REG-11||Application for Amendment in Particulars subsequent to Registration|
|11||GST REG-12||Order of Amendment of existing Registration|
|12||GST REG-14||Application for Cancellation of Registration|
|13||GST REG-15||Show Cause Notice for Cancellation of Registration|
|14||GST REG-16||Order for Cancellation of Registration|
|15||GST REG-17||Application for Revocation of Cancelled Registration|
|16||GST REG-18||Order for Approval of Application for Revocation of Cancelled Registration|
|17||GST REG-19||Notice for Seeking Clarification / Documents relating to Application for Revocation of Cancellation|
|18||GST REG-20||Application for Enrolment of Existing Taxpayer|
|19||GST REG-21||Provisional Registration Certificate to existing taxpayer|
|20||GST REG-22||Order of cancellation of provisional certificate|
|21||GST REG-23||Intimation of discrepancies in Application for Enrolment of existing taxpayer|
|22||GST REG-24||Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under GST Act|
|23||GST REG-25||Application for extension of registration period by Casual / Non-Resident taxable person|
|24||GST REG-26||Form for Field Visit Report|
The above analyses of several provisions of GST are only for general understanding of the readers and should not be relied upon before obtaining appropriate professional advice.
For feedback or queries, author could be reached at [email protected].