Ashish Mittal

Ashish MittalBackground:

Every time a law comes into force the Assessee falling under its ambit has to get them registered in said law and comply with the relevant provisions. CBEC in association with empowered GST council has notified Revised draft Model GST Law (in short “MGL”) as revised on 25th November 2016, rules and schedules issued in this regards wherein vide CHAPTER – VI, a set of five Sections(in short “Sec.”) read with separate rules issued in this regards for compliance and a schedule defining person liable to be registered wide Schedule-V of the MGL for classifying the fate of certain classes of Assessee.

Applicability of Goods and Services Tax

The applicability of registration under MGL on various classes of Assessee along with turnover limit (in short T/o) can be explained in a summarized form in the following table (Reference to Section-23 read with Schedule-V have been made herein)

Applicability of Registration under Revised Model GST LAW

S.No. Class of Assessee Liable for Registration as Per Sec. 23 of MGL and Schedule-V Turnover Limit When to Apply
1 Supplier of Taxable Service/Goods (Supply chargeable to tax under MGL as per Sec. 2(99))
including
1. Supply on behalf of principal
2. Supply by Job worker on Assessee account
excluding
Person supplying only Non-taxable service or goods (Supply not chargeable to tax under MGL as per Sec. 2(100)) or an agriculturist or for agriculture.
ForStates mentioned in Article-279A (4) (g) of Constitution of India –T/o Limit is exceeding  10 lakhs in a Financial Year(in Short “F.Y”) Within 30 days when T/o limit is crossed
For other States-T/o Limit is exceeding 20 lakhs in a F.Y. Within 30 days when T/o limit is crossed
2 Person holding registration in any previous law (Say, under VAT, CST, Service Tax, Excise Law, etc. i.e. law’s subsuming under MGL) No Limit is Applicable and Enrollment need to be done later registration can be cancelled if falling with the Supra mentioned limits Within 30 days of when liable to get registered i.e. 30 days from appointed date
3 In case of Succession of Business–the successor of business need to get fresh registration. No Limit is Applicable as it is transfer of existing business Within 30 days of transfer or succession
4 In case of amalgamation or demerger–the resultant Assessee No Limit is Applicable as it is transfer of running business Within 30 days of issue of Certificate of Incorporation
5 Interstate supplier No T/o Limit Within 30 days of indulging in such activity under MGL.
6 Casual taxable person No T/o Limit At least five days prior to the commencement of business
7 Non-Resident Taxable person
8 Person liable under Reverse Charge Mechanism (in Short “RCM”) No T/o Limit

 

Within 30 days of indulging in such activity under MGL.
9 Deductor specified under Sec. 46 of MGL or Collector of Tax under Sec. 56 (irrespective of fact of separate registration)
10 Agent of a taxable person No T/o Limit

 

Within 30 days of indulging in such activity under MGL.
11 Input Service Distributor
Special Point- In case registered under earlier law then also need to take fresh registration
12 E-Service provider or E-goods supplier
13 E-commerce Operator
14 An aggregator
15 Unregistered person located O/s India supplying online information and database access or retrieval services to a person in India
16 Other as specified by Govt.
17 Not falling above can take on voluntarily basis (S. 23(3))

Procedure for Registration under Revised Model GST Law :

Following is the procedure for registration under MGL, certain classes of Assessee as defined in Supra mentioned table have bifurcated according to various applicable rules on them in following summarized manner giving the gist of the various co-related provisions in an integrated manner, wherein Assessee on whom separate provisions are applicable are defined separately and on whom same provisions are applicable have been kept in general rule.

A: General Rule: (Reference of Section 23 read with rule 1, 2, and 3 of Registration rule have been made herewith)T

1. Other than Non-Resident, Deductor under sec. 46 or collector under Sec. 56, fill Part A of FORM GST REG-01 particulars such as email, PAN, Mobile No. which would be verified.

2. After verification an application reference number shall be generated and communicate

3. Then fill Part B of FORM GST REG-01, signed and submit along with documents.

4. An acknowledgement shall be issued in FORM GST REG-02 (electronic on temporary basis)

5. Proper officer after verifying above shall approve within 3 working days form application.

6. If found deficient with regards to information or documents, then it shall be intimated in FORM GST REG-03 within 3 working days form application and reply should be given within 7 working days form intimation receipt in FORM GST REG-04.

7. The reply forwarded to concerned proper officer and he may

a) Grant approval within 7 working days

b) Reject along with reasons in FORM GST REG-05.

Note:  If no action taken by proper officer in 3 or 7 working days then automatic registration shall be granted.

8. If approved then certificate of registration in FORM GST REG-06 shall be granted effective from

a) if applied within 30 days of being liable-date on which being liable to get registered

b) Otherwise on date of grant of approval for registration.

B. For Deductor under 46 or 56 of MGL:

1. Application electronically along with documents in FORM GST REG-07

2. Grant of RC within 3 working days of application in FORM GST REG-08

3. Can cancel also if satisfied that no future needs to deduct TDS in FORM GST REG-08

C. For Non-Resident and Casual Dealer:

1. Application electronically along with documents in FORM GST REG-10 at least 5 days before business commencement

2. Grant temporary identification number and later temporary acknowledgement.

3. Person shall make advance payment of tax liability.

4. Other steps and condition for RC shall apply mutatis mutandis.

5. RC shall be valid for 90 days subject to extension

6. Extension can be granted under Form GST REG-25

Special Comment:

At the outset emphasis must be given to governments intention of keeping each and every communication with the department in electronic form thereby defining forms for each and every communication whether from Assessee or department’s side thereby promoting the Hon’ble PM view of digital India and paper less economy which would definitely be appreciated by the industry thereby reducing the manual work load and regular visiting to the department. Although huge efforts are being made by the government towards building a strong GSTN portal but it should effectively carters the need of various class of Assessee thereby enabling in “Digitalization”.

Common Points and Penal Provisions related to GST Registration:

Certain common & penal provisions for all the Assessee (Reference to Section 23 and 24 read with rule 4, 6,7,10, 15, 17 of Registration rule)

1. For Multiple Locations in a single state, different registration may be taken on fulfilling certain conditions i.e. as per Rule-4 of registration rules:

a. Having different business segment as per AS-17.

b. No business segment registered under composition scheme under Sec. 9 (if separate registration granted then not allowed for opting composition scheme)

c. Tax to be paid and tax invoice to be issued in case of inter unit transfer

Note: If above condition satisfied then each segment can apply for registration individually and other steps and condition apply mutatis mutandis.

2.PAN is mandatorily required (for NON-RESIDENT other documents may be considered)

3. If person liable to register fails, then proper officer may register him

4. Rejection shall be done after giving opportunity of being heard and Show Cause Notice (in short “SCN”).

5. Certain Class of person may be exempted by Govt.

6. Suo-moto if at time of search any person not registered found liable to be registered shall be register by proper officer in FORM GST REG 13, and later he shall apply for registration normally under this act as specified in rules.

7. Display GSTIN and RC in prominent place in principal place of business.

8. All communication shall be done electronically on GST site by department and Assessee and communication shall be appropriately signed by authorized person.

9. Physical verification if required by proper officer may be conducted and documents shall be uploaded in Form GST REG-26.

Amendment in GST registration

Amendment in registration (Reference of Section 25 read with rule 9 of Registration rule has been made)

1. Any information change which was filled at time of registration shall be intimated within 15 days to the proper officer in FORM GST REG-11 along with documents as proof.

2. Changes relates to the Name, Principal Place of Business, and details of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent then order to be passed within 15 days by proper officer on satisfaction in order under FORM GST REG-12.

3. for others as soon as application is filled on portal

4. If change in PAN then fresh application is required.

5. If application filled above is incomplete or docs are not complete then SCN under FORM GST REG-03 within 15 days of application shall be send for show cause in next 7 days of receipt of SCN.

6. Reply to be filled in FORM GST REG-04

Note:  If no action taken by proper officer in 15 or 7 working days then automatic amendment in registration shall be granted.

Note: Non acceptance of amendment shall be done after giving opportunity of being heard.

Cancellation and Revocation of GST Registration:

Cancellation of registration and Revocation of Cancellation in registration (Reference of Section 26 and 27 read with rule 11, 12, 13 of Registration rule has been made)

1. Proper officer may Suo moto in case of death, if

a) business discontinued

b) change in the constitution of the business

c) No longer required registration

2. Cancellation may also take place if

a) Contravention of any provision of this act

b) Return not filled continuously for 3 month in case of composition scheme person and 6 month for others

c) person taken voluntary registration don’t start business within 6 month

3. Registration obtained by fraud, willful misstatement or suppression of facts, can be cancelled with retrospective effect.

4. Cancellation after giving Opportunity of being heard (in short “OBH”), by issuing SCN under FORM GST REG-15,Assessee still liable for old dues.

5. In case of cancellation ITC/CENVAT of inputs capitalgoods shall be reversed in prescribed manner.

6. Application may be made in FORM GST REG-14 for cancellation along with relevant documents on being satisfied proper officer shall issue cancellation order under FORM GST REG-16 within 30 days. (Apply mutatis mundis to legal heir)

7. On cancellation by proper officer an application in FORM GST REG-17 within 30 days of service shall be filled (except in case of non-filling of return in such case application can be filled after return is filled and dues paid thereof).

8. After being satisfied and recording reason proper officer shall revoke cancellation under FORM GST REG-18 or reject application under FORM GST REG-05.

9. Officer may require Assessee to furnish additional documents in FORM GST REG–03 within 3 working days and reply to be submitted within 7 working days by Assessee.

10. Proper officer may dispose of the application within 30 days or issue rejection under FORM GST REG-23 without OBH

Transitional Provisions under GST:

Transitional Provision (Reference to Section 166 and Rule 14 of Registration Rule has been made)

1. Registered Person in earlier law shall be granted provisional registration in FORM GST REG-26 with GSTIN.

2. Such person shall file application under FORM GST REG–25 along with documents and information as required within 6 month plus extension.

3. If Found Ok then grant RC under FORM GST REG-06, otherwise or in docs or information not submitted on time cancel the provisional registration and issue an order in FORM GST REG-27 after giving OBH.

4. Person registered in earlier law not required in current law shall apply for cancellation in FORM GST REG-24.

(Author is Article Assistant at S.S. Khothari Mehta & Co. and can be reached at Email Id.- ashishmittal5555@gmail.com)

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