WHEN AND HOW TO GET REGISTERED UNDER GOODS AND SERVICE TAX
(Other than migration cases)
1. Who are liable to get registered under GST
(a) On the basis of amount of turnover
Every supplier whose aggregate turnover in a financial year exceeds twenty lakh rupees shall be liable to be registered under the Goods and Service Tax. He will be registered in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both.
In case where a person makes taxable supply of goods or services or both from a special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
Following States have been declared as special category States:
(i) Arunachal Pradesh ( ii) Assam (iii) Jammu & Kashmir (iv) Manipur (v) Meghalaya (vi) Mizoram (vii) Nagaland (viii) Sikkim (ix) Tripura (x) Himachal Pradesh & (xi) Uttarakhand.
> When a business carried on by a taxable person registered under the Goods and Service Tax is transferred on account of succession or otherwise, to another person, as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
> In case of amalgamation of two or more companies or demerger of a company, the transferee company or companies shall be registered under the Goods and Service Tax with effect from the date of issue of registration certificate by the Registrar of
> Companies (ROC).
> Aggregate Turnover” means the aggregate value of all taxable supplies(excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes taxes
> The expression “Aggregate Turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. However the supply of goods from the place of business of a registered job worker, after completion of job work, shall be treated as supply of goods by the principal and the value of such goods shall not be included in the aggregate turnover of the registered job worker.
(b) On the basis other than amount of turnover
Following categories of persons shall be required to be registered under the Goods and Service Tax:
(i) Persons making any inter-state taxable supply;
(ii) Casual taxable persons making taxable supply;
(iii) Persons who are required to pay under reverse charge;
(iv) E- Commerce operators or their representatives who are required to pay tax on certain notified intra-state supply of services if such services are supplied through it. In such cases e-commerce operator shall be treated as supplier of services for paying tax in relation to such supply of services;
(v) Non-resident taxable persons making taxable supply;
(vi) Persons who are required to deduct TDS under GST, whether or not separately registered under GST;
(vii) Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
(viii) Input service distributor, whether or not separately registered under the Goods and Service Tax;
(ix) Persons who supply goods or services or both, except certain notified supplies (serial iv), through such electronic commerce operator who is required to collect tax at source under Goods and Service Tax;
(x) Every electronic commerce operator;
(xi) Every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person; and
(xii) Such other person or class of persons as may be notified by the Government on recommendation of the GST council.
2. Time period of application for registration
A person shall make an application for registration within thirty days from the date on which he becomes liable to registration under the Goods and Service Tax. But a casual taxable person and non resident taxable person shall apply for registration at least five days prior to the commencement of business.
3. Voluntary Registration
A person who is not liable to be registered under GST may apply for registration voluntarily. Once a person gets himself registered, may be voluntarily, all the provisions of the Act shall apply accordingly.
4. Separate Registration for Business Verticals
A person shall be granted a single registration in a state or union territory. But where a person having multiple business verticals in a State or Union territory separate registration may be granted for each business vertical.
> “business vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.
Explanation.–For the purposes of this definition, factors that should be considered in determining whether goods or services are related include–
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities;
5. Distinct persons in respect of separate registrations under single PAN
i) A person who has obtained separate registration in one State or Union territory or more than one State or Union territory, shall be treated as distinct persons in respect of each such registration.
ii) Where a person has establishments in more than one State or Union territory, on becoming liable to registration under GST, each such establishment shall be registered separately in their respective State or Union territory from where such establishments make taxable supply of goods or services. Each such establishment shall be treated as distinct persons.
6. PAN/TAN issued under the Income Tax Act, 1961
iii) Every person shall have a Permanent Account Number (PAN) issued under the Income Tax Act, 1961 in order to be eligible for grant of registration. But in case of a person required to deduct TDS under GST shall have Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act, 1961 in order to be eligible for grant of registration.
> In the case of non resident taxable person, in lieu of PAN or TAN, registration may be granted on the basis of such other documents as may be prescribed.
7. Issue of unique identity number in case Certain specified agencies
In lieu of Goods and Service Tax Identity Number (GSTIN), a Unique Identity Number (UIN) shall be granted to the following persons:
(i) Any specified agency of United Nation Organisation (UNO).
(ii) Any multilateral financial institution and organization notified under the United Nations (Privileges and Immunities) Act, 1947.
(iii) Consulate or Embassy of foreign countries.
(iv) Any other person or class of person as may be notified by the commissioner.
8. Special provisions for casual and non- resident taxable persons
(i) The certificate of registration granted 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. Where an extension of period is sought by such taxable person, such period of ninety days may be extended by proper office for a further period not exceeding ninety
(ii) 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 registration is sought.
, Where an extension of time is sought, such taxable person shall deposit an additional amount of tax equivalent to the estimates tax liability of such person for the period for which the extension is sought.
> “Casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
> “Non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;
9. Exempted Persons
(i) The following persons shall not be liable to registration, namely:––
(a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under the CGST Act or under the IGST Act;
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
(ii) The Government may, on the recommendations of the GST Council, by notification, specify the category of persons who may be exempted from obtaining registration under GST.
PROCEDURAL ASPECTS
(Other than migration cases)
If a person is not an existing tax payer and intend to register newly under Goods and Service Tax he may apply for registration at the GST common portal from 25th June, 2017. www.gst.gov.in has been declared as GST common portal.
(1) Application for Registration
(a) Every person who is liable to be registered (compulsory registration) and every person seeking registration (voluntary registration) shall before applying for registration declare his permanent Account Number(PAN), mobile number, e-mail address, State or Union territory in Part A of FORM GST REG – 01 on the common portal, either directly or through a facilitation centre notified by the commissioner.
> A person having a unit(s) in a Special Economic Zone or being a Special Economic Zone developer shall make a separate application for registration as a business vertical distinct from his other units located outside the Special Economic Zone.
> Every person being an Input Service Distributor shall make a separate application for registration as such Input Service Distributor.
(b) The PAN shall be validated online by the common portal from the data base maintained by the Central Board of Direct Taxes.
(c) The mobile number and e-mail address shall be verified through two separate onetime passwords (OTP) sent to the said mobile number and e-mail address.
(d) 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 the said mobile number and e-mail address.
(e) Using the temporary reference number the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly digitally signed or verified through electronic verification code (EVC), along with documents specified in the said Form at the Common Portal, either directly or through a Facilitation Centre notified by the commissioner.
(f) On submission of the application, the applicant shall receive an acknowledgement in Form GST REG – 02 generated electronically.
> A person applying for registration as a casual taxable person shall be given a temporary reference number by the common portal for making advance deposit of tax in an amount equivalent to the estimated tax liability of such casual person for the period for which registration is sought. Acknowledgement in Form GST REG -02 shall be issued electronically to such casual person only after the said deposit of tax.
(2) Verification of the application and approval
(a) The proper office after verifying the application and accompanying documents and if the same are found to be in order, approve the grant of registration within three working days from the date of submission of application.
(b) Where the proper office finds the application to be deficient, either in terms of any information or any document required to be furnished or where the proper officer requires any clarification with regard to any information provided in the application or documents furnished therewith, 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 and the applicant shall furnish such clarification, information or documents electronically, in FORM GST REG-04, within seven working days from the date of receipt of such notice .
(c) Where the proper officer is satisfied with the clarifications, information 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.
(d) Where no reply is furnished by the applicant in response to the notice as mentioned in point (b) above within the prescribed period 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 such application and inform the applicant electronically in FORM GST REG- 05.
(e) The application for grant of registration shall be deemed to have been approved, if the proper officer fails to take any action –
(i) Within 3 working days from the date of submission of application, or
(i) within seven working days from the date of receipt of clarification, information or documents furnished by the applicant as mentioned in point (c) above.
(3) Issue of registration certificate
Where the application for grant of registration certification has been approved by the proper officer 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 and such certificate may be downloaded by the applicant.
> 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 30 days from such date.
> Where an application for registration has been submitted by the applicant after 30 days from the date of his becoming liable for registration, the effective date of registration shall be the date of grant of registration.
> Every certificate of registration shall be digitally signed by the proper officer.
(4) Separate registration for multiple business verticals within a State or Union territory.
A person having multiple business verticals within a State or Union territory may require separate registration for any of its business verticals. He may be granted separate registration in respect of each of the business verticals on fulfilling following conditions:
(i) No business vertical of such person shall be granted registration to pay tax under composition levy if any one of the other business verticals of the same person is paying tax at normal rate.
(ii) Where any business vertical of a registered person that has been granted a separate registration becomes ineligible to pay tax under composition scheme, all others business verticals of the said person shall become ineligible to pay tax under the said
(iii) All separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business verticals of such person and issue a tax invoice on such supply.
> Application for registration may be submitted on the common portal separately in respect of each eligible business vertical in FORM GST REG – 01
> Other provisions of granting registration will remain same. Already discussed above.
(5) Grant of registration to persons required to deduct tax at source or collect tax at source.
(i) A person required to deduct tax at source or collect tax at source under GST shall electronically submit an application on the common portal, digitally signed or verified through EVC, in form GST REG – 07 for grant of registration, either directly or through a facilitation centre notified by the commissioner.
(ii) The proper officer may grant registration after due verification and issue a certificate of registration in FORM GST REG – 06 within three working days from the date of submission of application.
(iii) Where, upon an enquiry or pursuant to any other proceedings, the proper officer is satisfied that the person to whom a certificate of registration has been issued in FORM REG – 06 is no longer liable to deduct tax at source or collect tax at source, the said officer may cancel the registration following the prescribed procedures and such cancellation shall be communicated to the said person electronically in FORM GST REG – 08
(6) Grant of registration to Non- resident taxable person
(i) A non-resident taxable person shall electronically submit an application for registration on the common portal, along with a self-attested copy of his valid passport, digitally signed or verified through EVC in FORM GST REG – 09, at least five days prior to the commencement of business at the common portal either directly or through a Facilitation Centre notified by the Commissioner.
> In case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available.
(ii) A person applying for registration as a non resident taxable person shall be given a temporary reference number by the common portal for making 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 and acknowledgement of said application shall be issued electronically in FORM GST REG – 02 only after such deposit of estimated tax liability and credited in his electronic cash ledger.
> Other provisions of grant of registration will remain same as already discussed.
> The application for registration made by a non-resident taxable person shall be signed by his authorized signatory who shall be a person resident in India having a valid PAN.
(7) Grant of registration to a person supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient
(i) Any person supplying online information and data base access or retrieval services from a place outside India to a no- taxable online recipient shall electronically submit an application for registration, digitally signed or verified through Electronic Verification Code (EVC), in FORM GST REG – 10, on the common portal, either directly or through a facilitation centre notified by the commissioner.
(ii) The applicant shall be granted registration in FORM GST REG – 06, subject to such conditions and restrictions and by such officer as may be notified by the Central Government on the recommendations of the GST council.
(8) Extension in period of operation by casual taxable person and non- resident taxable person
(i) To extend the period of registration indicated in application of registration, a registered casual taxable person or a non resident taxable person shall submit an application electronically through the common portal in FORM GST REG – 11 either directly or through a facilitation centre notified by the commissioner before the end of validity of registration granted initially.
(ii) The application for extension the period of registration shall be acknowledged after payment of an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
(9) Suo Moto Registration
(1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the GST has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG- 12.
(2) Such temporary registration shall be effective from the date of order granting
(3) Every person to whom a temporary registration has been granted shall, within thirty days from the date of the grant of such registration, submit an application for registration in the form and manner discussed in point number (1) (i.e. Application for registration) or point number (5) (i.e. application for registration as TDS deductor or TCS collector) unless the said person has filed an appeal against the grant of temporary registration, in which case the application for registration shall be submitted within thirty days from the date of issuance of order upholding the liability to registration by the Appellate Authority.
(4) After verification of the application in an appropriate manner the proper officer shall issue electronically registration certificate in FORM GST REG – 06.
(5) Such certificate of registration granted in Form GST REG -06 shall be effective from the date of granting temporary registration.
(10) Assignment of Unique Identity Number to Certain Special Entities
(1) Every person required to be granted a Unique Identity Number may submit an application electronically in FORM GST REG – 13, digitally signed or verified through EVC on the common GST portal either directly or through a Facilitation center notified by the Board or Commissioner.
(2) The proper office may after verification in an appropriate manner, assign a Unique Identity Number to the said person and issue a certificate in FORM GST REG – 06 within 3 working days from the date of submission of the application.
(11) Physical Verification of Business Premises
After granting registration, where the proper officer is satisfied that the physical verification of place of business of the registered person is required he may get such verification done and verification report along with other documents, including photographs, shall be uploaded in FORM GST REG – 30 on the common portal within fifteen working days from the date of such verification.
(12) Display of registration certificate and GSTIN on the name board
(i) 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
(ii) Every registered person shall display his Goods and Service Tax Identity Number (GSTIN) on the name board exhibited at the entry of his principal place of business and at every additional place or places of business
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Nice and informative