Registration of Taxpayers in GST

SECTION RANGE: 22 to 30

As per Section 22 of the CGST/SGST Act 2017, every supplier who makes a taxable supply with all India Aggregate Turnover exceeding Rs 20 lakh will have to register in every state in which he conducts business. This threshold will be 10 lakh if business is in Assam, Arunachal Pradesh, J&K, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or Tripura. A person may have multiple registrations for different business verticals in a state.

‘Aggregate Turnover’ (Section 2(6) of CGST ACT) 

= ALL Taxable supplies

+ ALL Exempt Supplies

+ Exports of goods and / or service

+ ALL Inter – State Supplies

of a person having the same PAN.

–Taxes under CGST, SGST, UTGST, IGST and compensation Cess

– Value of inward supplies on which tax is payable under reverse charge

Taxable Supply (Section 2(108) of CGST ACT) =supply of goods and / or services which are leviable to tax under GST law.

Supplier (Section 2(105) of CGST ACT) = in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied

Advantages of taking Registration under GST: 

In any tax system, registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input Tax Credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input Tax Credit of tax paid by him.

1. He is legally recognized as supplier of goods or services.

2. Legally authorized to collect GST on sale of goods or services: A person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him on purchases and services.

3. Benefit of Input Tax Credit: Registered supplier will issue tax invoice which will further help registered dealer to avail input tax credit on the basis of tax invoice on all the purchases and services availed by them and can utilize the same for payment of taxes due on supply of goods or services..

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

5. 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.

Voluntary Registration if turnover less than Rs. 20 Lakhs– The small businesses, having turnover below the threshold limit can, however, voluntarily opt to register. Section 25(3) allows voluntary registration even if the turnover does not exceed the prescribed limit. This will ensure that credit chain is not broken.

However the section contains that “all provisions of the ACT as are applicable to a registered person shall apply”. Hence a person who registers voluntarily even before the turnover exceeds the prescribed limits shall collect and pay GST even on the turnover which is less than the threshold limit.

IMPORTANT POINTS ON GST REGISTRATION

1. Separate Registration for multiple business verticals in a state : 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

2. person is operating in different states, with the same PAN number needs different registration in each state: 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. Thus there is no option to take centralized registration under GST Law.

Note: A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

3. SUO – Moto Registration by department through proper officer if a person fails to obtain registration: 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.

4. Registration of UN bodies under GST : In terms of Section 25(9) of the CGST/SGST Act, all notified UN bodies, Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States. This UIN will be needed for claiming refund of taxes paid on notified supplies of goods and services received by them, and for any other purpose as may be notified.

5. Registration of Govt. Organisation :- 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.

6. Input Service Distributor (ISD) Registration: – ISD will be required to separately register other than the existing tax payer registration. Different offices of a tax payer can apply for ISD registration.

Note: 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.

7. JOB WORKER Registration: – 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.

8. Transfer of Business and Registration: – If registered taxable person transfers business on account of succession or otherwise, to another person as a going concern, the transferee, or the successor, as the case may be, Ch-VI : Registration Sec. 22-30 CGST Act 209 shall be liable to be registered with effect from the date of such transfer or succession. This means that the Registration Certificate issued under Section 22 of the Act is not transferable to any other person. In a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies by an order of a High Court, 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.

9. Person obtaining more than single registration in one/more than one states, shall be treated as distinct persons

10. PERSON NOT LIABLE FOR GST REGISTRATION: 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.

– The following classes of taxpayers shall be exempted from obtaining registration: 

i. persons making inter-state supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees (ten lakh rupees for special category States except J & K) are exempted from obtaining registration vide Notification No. 10/2017-Integrated Tax dated 13.10.2017.

ii. Suppliers of services, having turnover upto Rs. 20 lakhs, making supplies through e-commerce platforms.

iii. If all the supplies being made by a supplier are taxable under reverse charge, there is no requirement for such a supplier to register in light of Notification No. 5/2017-Central Tax dated 19.06.2017.

11. EFFECTIVE DATE OF GST 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 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 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.

12. Time limit for taking a Registration under GST :- A person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as is prescribed under the Registration Rules. A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prior to commencement of business.

13. Registration compulsorily irrespective of the threshold limit for-

i) Persons making any inter-State taxable supply; except persons making inter-state supply of certain handicraft goods, and services;

NOTE: – The following classes of taxpayers shall be exempted from obtaining registration:

i. Suppliers of services, having turnover upto Rs. 20 lakhs, making inter State supplies;

ii. Suppliers of services, having turnover upto Rs. 20 lakhs, making supplies through e-commerce platforms.

ii) Casual taxable person who is not having fixed place of business in the State or Union Territory from where he wants to make supply.

A Casual taxable person is one who has a registered business in some State in India, and 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.  Such person needs to register in the State from where he seeks to supply as a Casual taxable person.

iii) Non-resident taxable persons making taxable supply;

A Non-Resident taxable person is one who is a foreigner and 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.

Note: Advance tax to be paid by a Casual Taxable Person and Non-resident Taxable Person at the time of obtaining Registration: – 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, to 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.

iv) Those ecommerce operators who are notified as liable for GST payment under Section 9(5)

v) Persons who are required to pay tax under reverse charge;

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 supply goods, other than supplies specified under Section 9(5), through such e-commerce operator who is required to collect tax at source under section 52;

x) 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;

xi) Every electronic commerce operator;

14. Penalty for not taking registration when liable :where a taxable person who is liable to be registered under this Act but fails to obtain registration; he shall be liable to pay a penalty of Rs.10,000/- or an amount equivalent to the tax evaded, whichever is higher

15.  Validity of registration certificate: Registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.

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.

16. DISPLAY OF GST REGISTRATION CERTIFICATE : Every registered taxable 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.

17. Amendment to Registration Certificate : 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.

18.  Whether PAN mandatory for registration :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(6) of the CGST/SGST Act

Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said 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.

19. proper officer can reject an Application for Registration after due verification In terms of sub-section 10 of section 25 of the CGST/SGST Act

20. 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).

“ALL DOCUMENTS IN ORIGINAL” FOR GST Registration of INDIVIDUAL:

1. Passport Size Photo.

2. Active E-mail ID

3. Current Mobile Number

4. PAN card of the Individual

5. Aadhar Card of the Individual

6. ID proof of the individual: Passport/ Voter ID card/ Driving License.

7. Address proof of Office premises: (ANY 2)Electricity Bill/ Landline Telephone bill,
Municipal Tax (Vera Bill) copy, Rent/Lease agreement (in case premises are rented)
Consent letter (In case premises of relatives),Any Certificate or Record from Government Dept,

8. Address proof of Residence of Individual: (ANY 2)Electricity Bill/ Landline Telephone bill, Municipal Tax (Vera Bill) copy, Rent/ Lease agreement (in case premises are rented)Consent letter (In case premises of relatives),Any Certificate or Record from Government Dept

9. Business Proof :Gumasta Dhara Licence(Registration Certificate )/ SSI License

10. Cancelled Cheque of Bank Account showing Name of account Holder.
MICR Code, IFSC Code & Bank Branch Details.

11. First Page of Pass book OR latest Bank Statement of 2 months.

12. Digital Signature of Authorized Signatory / proprietor

13. Authority Letter in case proprietor is authorizing

14. Please Note:-

1. PIN would be sent to the E-mail ID and Mobile Number given which is to be given to us for verification

2. So please ensure that you have updated your mobile number in your Aadhar.

3. The Validation Process would take three working days and if no error is found, RC will be issued.

“ALL DOCUMENTS IN ORIGINAL” FOR GST Registration of PRIVATE LIMITED COMPANY:

a) Certificate of Incorporation (COI).

b) Company Pan Card Copy.

c) MOA & AOA of the company

d) Copy of the company latest current bank account statement

e) Copy of the board resolution

f)  All Director pan number

g) All Directors aadhar card number

h) Letter of authorization for authorising any director

i) ID proof of All Directors: Passport/ Voter ID card/ Driving License.

j) Address proof of Office premises: Copy of the electricity bill or landline or water bill of the company premise office.

k) No Objection certificate from the landlord of the premise office in case of rented premises.

l) Commercial rent agreement copy of the premise office in case of rented premises.

m) Passport size photographs of all directors.

n) Digital Signature of Authorized Signatory

o) Valid Email ID

p)  Valid Mobile No

“ALL DOCUMENTS IN ORIGINAL” FOR GST Registration of LLP/ firm:

a) Certificate of Incorporation (COI).

b) Company Pan Card Copy.

c) MOA & AOA of the company

d) Copy of the company latest current bank account statement

e) Copy of the board resolution

f)  All Director pan number

g) All Directors aadhar card number

h) Letter of authorization for authorising any director

i) ID proof of All Directors: Passport/ Voter ID card/ Driving License.

j) Address proof of Office premises: Copy of the electricity bill or landline or water bill of the company premise office.

k) No Objection certificate from the landlord of the premise office in case of rented premises.

l) Commercial rent agreement copy of the premise office in case of rented premises.

m) Passport size photographs of all directors.

n) Digital Signature of Authorized Signatory

o) Valid Email ID

p)  Valid Mobile No

GST REGISTRATION PROCESS:

· Go to the Government GST Portal (www.gst.gov.in) and look for Registration Tab

· Fill PAN, Mobile No., E-mail ID and State in Part-A of Form GST REG-01 of GST Registration

· You will receive a temporary reference number on your Mobile and via E-mail after OTP verification

· You will then need to fill Part-B of Form GST REG-01 duly signed (by DSC or EVC) and upload the required documents specified according to the business type

· An acknowledgement with the Application Reference Number (ARN) will be generated in Form GST REG-02

· The GST officer starts verifying your application After 3 working days, if the officer approves your GST application, you get the certificate of registration. If the officer rejects your application, he will ask you for additional details and documents in form GST-REG-03.

· You are then required to submit the additional documents along with GST-REG-04. You will have 7 working days to submit them. The office may also reject your application if they find any errors. You will be informed about this in form GST-REG-05.

· Finally, a certificate of registration in Form GST REG-06 will be issued to you by the department after verification and approval

NOTE: 1.TIME BY WHICH RESPONSE SHALL BE MADE FOR QUERY RAISED IN REGISTRATION 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.

2. TIME BY WHICH REGISTRATION WILL BE GRANTED AFTER 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.

3. 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.

4. In case registration is granted; applicant can download the Registration Certificate from the GST common portal.

Author- CS Suraj Bhardwaj

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