registration under gst act - registration.pdf · registration under gst ... all india basis but...

SURESH AGGARWAL

ADVOCATEMOBILE NO. 9810032846

EMAIL ID: [email protected]

REGISTRATION UNDER GST ACT

Registration under GST

MeaningRegistration means taking a unique number called GSTIN from theconcerned Authority which require for the following purpose:-

1. Legally recognized person as supplier of goods or services.

2. Authorized to collect tax from the customers and deposit as per Rules.

3. Allowed to pass on the credit of taxes paid to him by his buyers.

The Department will issue PAN based Registration to thedealer.

Non Resident person would be granted Registration onthe basis of other documents like Passport etc.

In case of enforcement case or other case whereRegistration is granted suo-moto by the department, ifsuch person dose not have PAN the Registration wouldbe initially granted temporary and later on would beconverted in to a PAN based Registration.

PAN based Registration

Liable to be Registered

LIABLE TO BE REGISTERED

Based on thresholdSection 22

Irrespective of thresholdSection 24

Any business entity whose Aggregate Turnover in a Financial Yearexceeds Rs. 20 lakhs (Rs 10 lakhs for special category of States) isliable to be registered in the state from where he makes a taxablesupply

Special Category States includes States of Arunachal Pradesh, Assam,Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram,Nagaland, Sikkim, Tripura, Uttrakhand.

Aggregate Turnover – Aggregate value of all taxable supplies,exempt supplies, exports of goods or services or both and inter-statesupplies of persons having the same PAN number , to be computed onall India basis but excludes the taxes levied in GST

Section 22- Persons Liable for Registration

Any person engaged exclusively in the business ofsupplying goods or services or both which are notliable to tax under the Act.

An Agriculturist.

Any class of person as may be notified by theGovernment on the recommendation of theCouncil.

Section 23- Persons Not Liable for Registration

Inter-state taxable supply

Casual & Non-resident

taxable persons

Person liable under Reverse

charge

Person deducting

TDS u/s 51

E-commerce operator – TCS &

person supply goods through them

E-commerce operator

AgentISD whether

or not separately registered under the

Act

Person supplying Online information & database

access or retrieval service from outside

India

Other notified person

Section 24- Compulsory Registration

Registration can be obtain State wise by the business entityand one number would be granted in one State irrespectiveof the facts that the business entity having numerous place ofbusiness in a particular State.

If a business entity having different business verticals thenhe can obtain Registration on vertical basis.

Business vertical means, engaged in different kind of Itemsor different type of services which are subject to risk andreturns that are different from those of other businessverticals or different type or class of customer and separateaccounting and profit calculation, separate purchase andsales transitions etc.

One PAN One Registration

Every person Registered under the existing law (State VAT Act,Service Tax, Luxury Tax, Entertainment Tax, Entry Tax etc.) shallenroll on the common portal by validating his Email address andMobile No.

On the basis of enrollment, the said person shall be granted aProvisional Registration in Form GST REG-25 on the appointed date.

Within three months or extended period, of the appointed date suchperson shall submit an Application electronically in GST REG-24 dulysigned along with information and relevant documents as specified inthe said Application on the common portal.

If Application and documents are found satisfactory then properofficer shall grant him Registration in Form GST REG-06.

Migrated Dealers

If Application or documents are not furnished or not found to becorrect or complete, the proper officer shall issue Show Cause Noticein GST REG-27.

Show Cause Notice in Form GST REG-27 can be vacated by issuing anorder in Form GST REG-19 if on reply by the dealer it is found that nosuch cause exist for which the Notice was issue.

After satisfaction the proper officer shall grant Registration in FormGST REG-06.

Every person Registered under the existing law but is not liable toregister under the GST Act, may filed an Application in GST REG-28within 30 days from the appointed date for cancellation ofRegistration granted to him and proper officer shall, after conductingsuch inquiry as deemed fit, cancel the said Registration.

Migrated Dealers

Every person who is liable to Registration shall, before applying forRegistration, declare his PAN, Mobile Number, Email address andState in Part-A of Form GST REG-01 on the common portal.

The PAN shall be validated online by the common portal and MobileNumber and Email address would be verified.

On successful verification of the PAN, Mobile Number and Emailaddress, a temporary Reference Number shall be generated andcommunicated to the applicant on the said Mobile Number and Emailaddress.

Using the Reference Number, the applicant shall electronically file anapplication in Part-B of Form GST REG-01 duly signed along withrelevant documents on the common portal.

Application for Registration

On receipt of an Application, an Acknowledgement shall be issued to theApplicant in Form GST REG-02.

The Application shall be forwarded to the principal officer who shallexamine the documents and if requires any clarification or documentsthen issue a Notice in GST REG-03 within 3 working days and applicantshall reply in GST REG-04 within 7 days and if proper officer satisfiedwith the reply then he may approve the grant of Registration in GST Reg-06 within 7 days.

If no reply furnished by the applicant then Application shall be rejectedin Form GST REG-05.

If proper officer fails to take any action within 3 working days from thedate of submission of original Application or within 7 days from the dateof receipt of information or documents in GST REG-04 then it shall bedeemed to have been approved for grant of Registration.

Application for Registration

Section 22 Persons liable for Registration

(1) Every supplier shall be liable to be registered under this Act in theState or Union territory, other than special category States, fromwhere he makes a taxable supply of goods or services or both, if hisaggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods orservices or both from any of the special category States, he shall beliable to be registered if his aggregate turnover in a financial yearexceeds ten lakh rupees.

(2) Every person who, on the day immediately preceding theappointed day, is registered or holds a license under an existing law,shall be liable to be registered under this Act with effect from theappointed day.

Section-22 GST Registration

(3) Where a business carried on by a taxable person registered underthis Act is transferred, whether on account of succession or otherwise, toanother person as a going concern, the transferee or the successor, as thecase may be, shall be liable to be registered with effect from the date ofsuch transfer or succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in acase of transfer pursuant to sanction of a scheme or an arrangement foramalgamation or, as the case may be, de-merger of two or morecompanies pursuant to an order of a High Court, Tribunal or otherwise,the transferee shall be liable to be registered, with effect from the dateon which the Registrar of Companies issues a certificate of incorporationgiving effect to such order of the High Court or Tribunal.


Explanation.–For the purposes of this section,–

(i) the expression “aggregate turnover” shall include all suppliesmade by the taxable person, whether on his own account ormade on behalf of all his principals;

(ii) the supply of goods, after completion of job-work, by aregistered job worker shall be treated as the supply of goods bythe principal referred to in section 143, and the value of suchgoods shall not be included in the aggregate turnover of theregistered job worker;

(iii) the expression “special category States” shall mean theStates as specified in sub-clause (g) of clause (4) of article 279Aof the Constitution.


Section 23 Persons not liable for Registration

(1) The following persons shall not be liable to registration, namely:-

(a) any person engaged exclusively in the business of supplyinggoods or services or both that are not liable to tax or whollyexempt from tax under this Act or under the Integrated Goods andServices Tax Act;

(b) an agriculturist, to the extent of supply of produce out ofcultivation of land.

(2) The Government may, on the recommendations of the Council, bynotification, specify the category of persons who may be exemptedfrom obtaining registration under this Act.


Section 24 Compulsory Registration in certain cases:-

Notwithstanding anything contained in sub-section (1) ofsection 22, the following categories of persons shall be requiredto be registered under this Act,–

(i) persons making any inter-State taxable supply;

(ii) casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under sub-section (5) ofsection 9;

(v) non-resident taxable persons making taxable supply;

(vi) persons who are required to deduct tax under section 51,whether or not separately registered under this Act;


(vii) persons who make taxable supply of goods or services or both onbehalf of other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registeredunder this Act;

(ix) persons who supply goods or services or both, other thansupplies specified under sub-section (5) of section 9, through suchelectronic commerce operator who is required to collect tax at sourceunder section 52;

(x) every electronic commerce operator;

(xi) every person supplying online information and database accessor 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 theGovernment on the recommendations of the Council.


Section 25 Procedure for Registration:-

(1) Every person who is liable to be registered under section 22 orsection 24 shall apply for registration in every such State or Unionterritory in which he is so liable within thirty days from the date onwhich he becomes liable to registration, in such manner and subjectto such conditions as may be prescribed:

Provided that a casual taxable person or a non-resident taxableperson shall apply for registration at least five days prior to thecommencement of business.

Explanation- Every person who makes a supply from the territorialwaters of India shall obtain registration in the coastal State or Unionterritory where the nearest point of the appropriate baseline islocated.


(2) A person seeking registration under this Act shall be granted asingle registration in a State or Union territory:

Provided that a person having multiple business verticals in a Stateor Union territory may be granted a separate registration for eachbusiness vertical, subject to such conditions as may be prescribed.

(3) A person, though not liable to be registered under section 22 orsection 24 may get himself registered voluntarily, and all provisionsof this Act, as are applicable to a registered person, shall apply tosuch person.

(4) A person who has obtained or is required to obtain more thanone registration, whether in one State or Union territory or morethan one State or Union territory shall, in respect of each suchregistration, be treated as distinct persons for the purposes of thisAct.


(5) Where a person who has obtained or is required to obtainregistration in a State or Union territory in respect of anestablishment, has an establishment in another State or Unionterritory, then such establishments shall be treated asestablishments of distinct persons for the purposes of this Act.

(6) Every person shall have a Permanent Account Numberissued under the Income tax Act, 1961 in order to be eligible forgrant of registration:

Provided that a person required to deduct tax under section 51may have, in lieu of a Permanent Account Number, a TaxDeduction and Collection Account Number issued under thesaid Act in order to be eligible for grant of registration.


(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) on the basis of such other documents as may beprescribed.

(8) Where a person who is liable to be registered under this Actfails to obtain registration, the proper officer may, withoutprejudice to any action which may be taken under this Act orunder any other law for the time being in force, proceed toregister such person in such manner as may be prescribed.


(9) Notwithstanding anything contained in sub-section (1),–

(a) any specialised agency of the United NationsOrganisation or any Multilateral Financial Institution andOrganisation notified under the United Nations (Privilegesand Immunities) Act, 1947, Consulate or Embassy of foreigncountries; and

(b) any other person or class of persons, as may be notifiedby the Commissioner, shall be granted a Unique IdentityNumber in such manner and for such purposes, includingrefund of taxes on the notified supplies of goods or servicesor both received by them, as may be prescribed.


(10) The registration or the Unique Identity Number shall begranted or rejected after due verification in such manner andwithin such period as may be prescribed.

(11) A certificate of registration shall be issued in such formand with effect from such date as may be prescribed.

(12) A registration or a Unique Identity Number shall bedeemed to have been granted after the expiry of the periodprescribed under sub-section (10), if no deficiency has beencommunicated to the applicant within that period.


1. Application for registration(1) Every person (other than a non-resident taxable person, a person supplying

online information and data base access or retrieval services from a placeoutside India to a non-taxable online recipient referred to in section 14 of theIntegrated Goods and Services Tax Act, a person required to deduct tax at sourceunder section 51 and a person required to collect tax at source under section 52)who is liable to be registered under sub-section (1) of section 25 and everyperson seeking registration under subsection (3) of section 25 (hereinafterreferred to in this Chapter as “the applicant”) shall, before applying forregistration, declare his Permanent Account Number (PAN), Mobile Number, e-mail address, State or Union Territory in Part-A of FORM GST REG-01 on theCommon Portal either directly or through a Facilitation Centre notified by theCommissioner:Provided that a Special Economic Zone unit or Special Economic Zone developershall make a separate application for registration as a business vertical distinctfrom its other units located outside the Special Economic Zone.

GST Registration Rules

(2) (a) The PAN shall be validated online by the Common Portalfrom the database maintained by the Central Board of DirectTaxes constituted under the Central Boards of Revenue Act,1963 (54 of 1963);

(b) The mobile number declared under sub-rule (1) shall beverified through a one-time password sent to the said mobilenumber; and

(c) The e-mail address declared under sub-rule (1) shall beverified through a separate onetime password sent to the said e-mail address.

(3) On successful verification of the PAN, mobile number and e-mailaddress, a temporary reference number shall be generated andcommunicated to the applicant on the said mobile number and e-mailaddress.


(4) Using the reference number generated under sub-rule (3), theapplicant shall electronically submit an application in Part B ofFORM GST REG-01, duly signed, along with documents specified inthe said Form at the Common Portal, either directly or through aFacilitation Centre notified by the Commissioner.

(5) On receipt of an application under sub-rule (4), anacknowledgement shall be issued electronically to the applicant inFORM GST REG-02.

(6) A person applying for registration as a casual taxable person shallbe given a temporary reference number by the Common Portal formaking advance deposit of tax in accordance with the provisions ofsection 27 and the acknowledgement under sub-rule (5) shall beissued electronically only after the said deposit in the electronic cashledger.


2. Verification of the application and approval

(1) The application shall be forwarded to the proper officer who shallexamine the application and the accompanying documents and if the sameare found to be in order, approve the grant of registration to the applicantwithin three working days from the date of submission of application.

(2) Where the application submitted under rule 1 is found to be deficient,either in terms of any information or any document required to be furnishedunder the said rule, or where the proper officer requires any clarificationwith regard to any information provided in the application or documentsfurnished therewith, he may issue a notice to the applicant electronically inFORM GST REG-03 within three working days from the date of submissionof application and the applicant shall furnish such clarification, informationor documents sought electronically, in FORM GST REG-04, within sevenworking days from the date of receipt of such intimation.


Explanation.- The clarification includes modification or correction ofparticulars declared in the application for registration, other than PAN,State, mobile number and e-mail address declared in Part A of FORMGST REG-01.

(3) Where the proper officer is satisfied with the clarification,information or documents furnished by the applicant, he may approvethe grant of registration to the applicant within seven working days fromthe date of receipt of such clarification or information or documents.

(4) Where no reply is furnished by the applicant in response to thenotice issued under sub-rule (2) within the prescribed period or wherethe proper officer is not satisfied with the clarification, information ordocuments furnished, he shall, for reasons to be recorded in writing,reject such application and inform the applicant electronically in FORMGST REG-05.


(5) 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 under sub-rule(2), the application for grant of registration shall be deemed to havebeen approved.

3. Issue of registration certificate

(1) Subject to the provisions of sub-section (12) of section 25, where theapplication for grant of registration has been approved under rule 2, acertificate of registration in FORM GST REG-06 showing the principal placeof business and additional place(s) of business shall be made available to theapplicant on the Common Portal and a Goods and Services Tax IdentificationNumber (hereinafter in these rules referred to as “GSTIN”) shall be assignedin the following format:


(a) two characters for the State code;

(b) ten characters for the PAN or the Tax Deduction and Collection A/c No.

(c) two characters for the entity code; and

(d) one checksum character.

(2) The registration shall be effective from the date on which the personbecomes liable to registration where the application for registration has beensubmitted within thirty days from such date.

(3) Where an application for registration has been submitted by the applicantafter thirty days from the date of his becoming liable to registration, theeffective date of registration shall be the date of grant of registration undersub-rule (1) or sub-rule (3) or sub-rule (5) of rule 2.


(4) Every certificate of registration made available on theCommon Portal shall be digitally signed by the proper officerunder the Act.

(5) Where the registration has been granted under sub-rule (5)of rule 2, the applicant shall be communicated the registrationnumber and the certificate of registration under sub-rule (1),duly signed, shall be made available to him on the commonportal within three days after expiry of the period specified insub-rule (5) of rule 2.

the application for grant of registration shall be deemed to havebeen approved.


SURESH AGGARWAL

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