REGISTRATION UNDER GST

 

 

 

Person liable for Registration – Section 22

 

 

Who is Liable for Registration?

 

• Every supplier shall be liable for Registration in the State or Union Territory (Other than Special Category States) if Aggregate Turnover in a Financial Year Exceeds :-

 

• If Supplier of Goods – Forty Lakh Rupees
• If Supplier of Services – Twenty Lakh Rupees

 

• If Supplier is from Special Category States then the Turnover Limit is reduced to Ten Lakh Rupees

 

 

What is Aggregate Turnover?

 

• ‘Aggregate Turnover’ shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals

 

• Section 2(6) of the CGST Act, defines “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 central tax, State tax, Union territory tax, integrated tax and cess;

 

• Example :

Mr. ABC owns a Agricultural Land & earns Rs. 1.00 Crore by selling Rice Produce, this is Exempt Activity under GST Act.

However He also deals in trading of business from which he gets Rs. 6 Lakh Rupees Annually, this Activity is Taxable under GST

 

Is Mr ABC Liable for Registration?

Yes, Because aggregate turnover includes exempt supply also & aggregate turnover of Mr ABC exceeds threshold limit of Rs. 40 Lakh

 

 

Person Not Liable to Registration – Section 23

 

• 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 CGST Act or IGST Act

 

• An agriculturist, to the extent of supply of produce out of cultivation of land.

 

• The Government may, on the recommendations of the GST Council by notification, specify the category of persons who may be exempted from obtaining registration

 

Person Liable for Compulsory Registration – Section 24

 

• Persons making any inter-State taxable supply

 

• Casual taxable persons making taxable supply;

 

• Persons who are required to pay tax under reverse charge;

 

• Person who are required to pay tax under sub-section (5) of section 9;

 

• Non-resident taxable persons making taxable supply;

 

• Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

 

• Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

 

• Input Service Distributor, whether or not separately registered under this Act;

 

• Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;

 

• Every electronic commerce operator;

 

• Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

 

• Such other person or class of persons as may be notified by the Government on the recommendations of the Council

 

Procedure for GST Registration – Section 25

 

• Person Liable to take registration under Section 22(Aggregate T/O exceeding Threshold Limit) or Section 24 (Compulsory Registration) shall apply for GST Number within 30 days from the date he is liable to register.

 

• In case a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical

 

• In case person is Casual Taxable Person or Non-Resident Taxable Person shall apply 5 days prior to commencement of business

 

• If a person wants to register Voluntarily i.e. even if person does not fall under Sec 22 or Sec 24 he can apply for GST Number & comply the all provisions of GST Act as applicable to a registered person

 

• A person who has obtained or is require to obtain more than one Registration whether in one State or Union Territory or Multiple Territory shall be considered as DISTINCT PERSON for purpose of GST Act.

 

• If Person is liable to registration and fails to register himself under GST Act, then proper officer may take suitable action as mentioned in the Law

 

• Any specialized agency of the UNO or any other organisation as notified by the commissioner shall be granted Unique Identity Number for all purposes including refund of taxes

 

• The registration or Unique Identity Number shall be issued as per procedure or shall be deemed to have been granted within period of 7 days

 

 

Deemed Registration – Section 26

 

• The grant of registration or issuance of the Unique Identity Number to a person or applicant under the GST Act, and shall to be deemed to be granted within 30 days subject to that there is no rejection of application under the Act

 

Provisions relating to casual taxable person and non-resident taxable person – Section 27

 

• Registration granted to casual taxable person or non-resident taxable person is valid for period mentioned in certificate or 90 days from date of registration whichever is earlier.

 

• Validity of Certificate further can be extended for more 90 days by proper officer on sufficient cause mentioned by the said taxable person.

 

Amendment of Registration – Section 28

 

• Every Person who is registered under the GST Act shall inform to proper officer about any changes in the registration within 15 days of such change.

 

• Such Changes can be done by logging on the GST Portal & applying to Amendment to Core Field or Non-Core Field.

 

Cancellation of GST Registration – Section 29

 

• Cancellation of Registration on application filed by Registered Taxable Person

 

• the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or

 

• There is any change in the constitution of the business; or

 

• The taxable person, other than the person registered as voluntarily , is no longer liable to be registered under section 22 or section 24

 

Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period

 

• Cancellation of Registration by Proper Officer from any date (including Retrospective Date)
  • A registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

 

• A person paying tax under section 10 ( composition levy scheme ) has not furnished returns for three consecutive tax periods; or

 

• Any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or

 

• Any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or

 

• Registration has been obtained by means of fraud, wilful misstatement or suppression of facts:

 

Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

 

Provided that is there is any pendency of proceedings relating to cancellation, then officer may suspend the registration for such period in manner prescribed

 

• Cancellation of Registration won’t affect the liability of the person to pay tax and other dues under this Act for any period prior to date of cancellation whether such dues after determined after or before date of cancellation

 

• The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under CGST Act as well.

 

• Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of –

 

• inputs held in stock or
• inputs contained in semi-finished or
• finished goods held in stock or
• capital goods or plant and machinery

 

on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed:

 

• Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher

 

• The amount payable as mentioned above shall be calculated in such manner as may be prescribed

 

Revocation of Cancellation of Registration – Section 30

 

• Application Revocation of cancellation of the registration within 30 days from the date of service of the cancellation order in cases where Registration is called by proper Officer.

 

• Period of 30 Days may further be extended by 30 days by the Additional Commissioner or the Joint Commissioner, as the case may

 

• Further such period can be extended for 30 days by the Commissioner

 

• The proper officer either revokes cancellation of the registration or rejects the application, but before rejection of application the proper officer should be given an opportunity of being heard by the applicant.

 

 

The revocation of cancellation of registration under SGST Act, and UTGST Act, as the case may be shall be deemed to be a revocation of cancellation of registration under section 30 of the CGST Act

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