QHAPTER STRUCTURE Introduction persons liable for registration under GST (Section 22) persons not liable for registration [Section 23] Compulsory registration (Section 24) Procedure for registration (Section 25) Amendment of registration (Section 28) Cancellation of registration (Section 29) Revocation of cancellation of registration (Section 30) Summary keywords. | Introduction The registration aims at creating a special class of persons to collect tax and operate thesystem properly. Under GST law, all persons or entities involved in buying or selling 800ds or providing services or both are required to register for GST. Unregistered person ‘Snot allowed to collect GST from a customer or claim input tax credit of GST paid or ould be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover. Any business in India that supplies goods or services with ae exceeding specified limit %40/20/10 lakh has to get registered under GST. In present °n procedure of registration and all other important provisions relating to registration have bet en dis discussed in detailory cont Benefits of Oren is registering under ra ay rd Benefits of registering under GST GST Registration will give the following advantages to a taxpayer: 1. Collection of taxes: Person registered under Customers and pass on the credit of the taxes pai 2. Take input tax credit: Pers Credit of taxes due. GST can collect taxes id to them, = son registered unde T GST can claim Inpu tq paid to suppliers and can utilize ¢ he same for Payment of tare, 3. No restriction on interstate sales; Person registered under GST can Take mterstate sales without restrictions Persons liable for registration According under GST (Section 22) ‘o section 22 following persons liable for registration under GST: Persons liable for registration, (Section 29) Persons migrating from existing law Normal supplier crossing specified limit259 agistration ___— 1, Normal supplier crossing specified limit [Section 22 (1)]: Every supplier shall be liable to be registered under CGST Act if he cross following threshold limits for registration. It is divided into following two categories: Category I: Threshold limit for registration on basis of nature of supply: Threshold limit for registration on basis of nature of supply can be divided into following two categories: () Incase of suppliers of goods (exclusively ): Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers of goods would be %40 lakhs and €20 lakhs (in the States of Arunachal Pradesh, Manipur, Meghalaya,” Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakharid) with effect from 01.04.2019. ~ 5 (ii) In case of supplier of services or services+ goods: Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be & 20 lakhs and ® 10 lakhs (for States of Manipur, Mizoram, Nagaland and Tripura). ‘Threshold limit for registrati basis of nature of Sup] In case of suppliers of goods (exclusively) 1. Manipur 2. Mizoram 3. Nagaland 4. Tripura260 Category IT: Threshold limit for registration on basis ¢ registration on basis states can be divided into following of States: Thresho two categories: by Threshold limit | for registration on basis of States Special Category States (11) Ol Fini 1. Arunachal Pradesh Puducherry + 2. Assam Telangana 3. Jammu and Kashmir % 4, Manipur 20 Lakhs ancase on S. Meghalaya Supply of os 6. Mizoram id: all cases ood 7. Nagaland (exclusively) 8. Sikkim 9. Tripura 20 Lakhs: 10. Himachal Pradesh cae © 11. Uttarakhand sos 1. Manipur 2. Mizoram 3. Nagaland 4Tripura other special category states 1. Arunachal Pradesh 2, Meghalaya 3. Sikkim, 4.Uttarakhand 10 lakhs in all cases In all cases { 20 LakhsFor example: Turnover | Turnover | Turnover in] Turnover | Aggregate | Registration in Delhi in UP Punjab in HP Turnover | required (Goods) (Goods) (Goods) (Goods) (Goods) 5,00,000. 5,00,000, 5,00,000 — 15,00,000 No 10,00,000 10,00,000 10,00,000, 2,00,000 50,00,000 Yes in all states 25,00,000 | 15,00,000 | 15,00,000 55,00,000 | Yes in all " three states 15,00,000 5,00,000 5,00,000 2,00,000 27,00,000 | No Aggregate turnover [Section 2 (6)]: According Section 2 (6) “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. Further, the expression “aggregate turnover” shall Value of all able supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge Add: value of exempt supplies ‘Add: Value of exports of goods or services or both value of inter-State supplies of persons Peciten Account Number Less: Central tax, State tax, Union territory tax, int cess (if added in above) j include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.Goods and Services Tax (agp) 2. P seve Ae ersons Migrating from existing tax laws [Section 22 (2)}: According section 22 (2) Every pe! : (2) Every person who, on the day immediately preceding the appointed Hiay nemepitered or y, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day, Central Excise Tee ae S| Saeed Service tx Sroeste | Rr esta ferns Pe Rak Pe) 3. Transferee in case of transfer of business [Section 22 (3); According section gistered under CGST 99 (3) where a business carr ied on by a taxable person re} ‘Act is transferred, whether on account of succession or otherwise, to another erson 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 oF succession. Renn aoa Arete In case of transfer of] ned {Section 22 (3)] Te at Woes canes 4, Transferee in case of amalgamation or demerger [Section 22 (4) Accord section 22 (4) in a case of transfer pursuant EO sanction of a scheme of arrangement for amalgamation oF, as the case may be, demerger of (we more companies pursuant oan order ofa High Court, Tribunal or oe sor ransferce shall be liable to be registered, with effect fom the date which the Registrar of Companies issues a certificate of inco! effect to such order of the High Court or ‘Tribunal.gistration 263 Se ee ren ayat ees Sr urn order of a Court ceo SES SC transferee eaves peter from the date on which OOD oereee on oetenad ee cee ee ee Pd Persons not liable for registration [Section 23]: According to section 23 (1) provides that certain categories of person not liable for registration as they are engaged in supplying non taxable goods or services under CGST Act. The Following persons shall not be liable to registration: Persons not liable for registration, {Section 23] Bepmebarnover does not exceed 40/20/10] ff Aggregate turnover exceeds 400/101 lakh rupees rupees Persons not liable for registration’ {Section 23) Persons making 100% exempted supplies [Section 23 (1) (a)] lies wholly exemy Persons making exempted supplies [Section 23 (1) (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 CGST Act or under the IGST Act shall not be liable to registration.of Goods and §, Tay 2. Agriculturist [Section 23 (1) (b)}: An agriculturist to the extent of g produce out of cultivation of land shall not be liable to registration SUPP 3. Specific the category of persons [Section 23 (2)}: The Governmeny the recommendations of the Council, by notification, specify the caren persons who may be exempted from obtaining registration under this Types of registration Registration can be divided in following two ways. ‘Types of registration Compulsory Voluntary registration Registration (Section 24) [Section 25 (3)] take Compulsory himself registration registered voluntarily irrespective of and not required by threshold limits: GST law (1) Compulsory registration (Section 24): According to section categories of persons are required to take Compulsory regis CGST Act, irrespective of threshold limits. Tt simply means 0 registration certain persons have to take registration ever P turnover in a financial year does not exceed 40/20/10 lakh rupees eer) required even Peroni rrRegistration 265 According to Section 24, the following categories of persons shall be required to be re istered under this Act, irrespective of threshold limits. L Persons making Inter-s ate taxable supply of goods 2. Casual taxable persons 3.Persons liable to pay under reverse charge 4.Persons liable to pay under section 9 [Electronic commerce operator] (® Persons making inter-State taxable supply of goods [Section 24 (J: Persons making any inter-State taxable supply is required to get mandatory registration under CGST Act irrespective of threshold limits. In the 22nd GST Council, it has been decided to exempt service providers from this criteria. Hence, service providers will now be allowed to undertake inter-state sales of upto %20 lakhs without obtaining GSTTee een Servos ty Providers have bg ception. Any person supply goods wil] Still he "eOineg lregistration mandatorily, if they undertake istration. It is important to note that only service registration. It is provided this obtain inter-state a Sg Suc cleaner tty ue eas Sty SEL) Sore cones coun on ees ee aes Ceres Cree De ee eae eevee a obtaining GST reg Piura’ (4) Casual taxable Persons [Section 24 taxable supply is required to be Section 2(20) “casual t undertakes transaction the course or further (ii)]: Casual taxable Persons making registered under CGST Act. According ‘axable person” means a person who occasionally ns involving Supply of goods or services or both in Tance of business, whether as Principal, agent or in any other capacity, in a State o, erritory where he has no fixed place of business, a Union ¢ on who pnally undertakes ansactions *in a State or a Union ‘Person registered in Hp *Participatin in Punjab territory where he has no 18 in trade faip fixed place of businessegistration 2 267 (ii) Persons liable to pay under reverse charge: Persons who are required to pay tax under reverse charge is required to get mandatory registration under CC Act irrespective of threshold limits. (i) Persons liable to pay under section 9(5) [Electronic commerce operator]: Person who is required to pay tax under section 9(5) is required to get mandatory registration under CGST Act irrespective of threshold limits (@) Non-resident making taxable supply: Non-resident taxable persons making taxable supply is required to get mandatory registration under CGST Act irrespective of threshold limits. (vi) Persons liable to deduct tax: Persons who are required to deduct tax under section 51, whether or not separately registered under CGST Act is required to get mandatory registration under CGST Act irrespective of threshold limits. (ii) Persons making supply on behalf of other of other taxable persons: Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise is required to be registered under CGST Act. Input Service Distributor: Input Service Distributor, whether or not separately registered under this Act is required to be registered under this Act. Persons Other than who are liable to pay under section 9(6): Persons who supply goods or services or both, other than supplies specified under section 9 (5), through such electronic commerce operator who is required to collect tax at source under section 52 is required to be registered under CGST Act. Electronic commerce operator: Every electronic commerce operator who is required to collect tax at source under section52 is required to be registered under this Act. Person supplying online information: every person supplying online information and database access or retrieval serviees from a place outside India to a person in India, other than a registered Person is required to be registered under CGST Act. Other person or class of persons: Such other person or class of persons as may be notified by the Government on the recommendations of the Council is required to be registered under GGST Act, Voluntary Registration [Section 25 (3)]: According to section 25 (3) a person, "though not liable to be registered under section 28 or section 24 may get __ himself registered voluntarily, and all provisions of. CGST Act, as are applicable toa registered person, shall apply to such person, >eae ‘ bona Cote iatiaes GST Act Procedure for registration (Section 25) Provisions related with Procedure for reg istration are divided in three and g as below * Application for * Verification of the application and approval * Issue of Tegistration certificate registration Important Note: In or decided to make Aadhi for new dealers from J der to check malpractices in GST, the GST Netwot ‘ar authentication or physical verification mandatory anuary 2020, registration: application for registrati Step I: Application fo, Following are the significant provisions related with ion: SE eee ee er ee Cae enn nication of temporary reference ni Hon ofan application in Part B of FORM GST RE G)Adknowledgement ~ Korm and manner of application, Eve taxable person, a pe "son supplying onli retrieval services fro TY Person (other than a non-resident ne information and data base access ot om a place outside | 4 nia to @ non-taxable online reeipien referred to in section 14 of the 'GST Act, a person required to deduct ail source under section 51 and 4 pe section 52) who is ‘Son required to collect tax at source undef ) lable to be registered shall, before applying for registration. declare his Permanent Account: Number (PAN), mobile number, address, State or Union territory in Part A of FORM GST REG-O1 Common Portal i__269 “PAN, *mobile number, e-mail address, “State or Union territory * non-resident taxable person, + person supplying online information an data base access or retrieval services 2 person required to deduct tax at source under section 51 in Part A of FORM GST REG-OL a person required to collect tax at source under section 52 line verification of PAN, mobile number, e-mail address: On line ‘ation of PAN, mobile number, e-mail address is done in following AN forint Roeire troy _ (a) verification of PAN: The PAN shall be validated online by the Common Portal from the database maintained by the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963). (b) Verification of mobile number: ‘The mobile number shall be verified through a one-time password sent to the said mobile number. _ (©) Verification of e-mail address: ‘The e-mail address shall be verified through a separate one-time password sent to the said e-mail address.Generation and communication of temporary Teferey S ae 2 of the PAN, mobile number and em b all be generated and ber and e-mail address. nerated the applicant shall clectronicaly n Part B of FORM GST REG-O1, duly signed, specified in the Form at the Common Portal or - Acknowledgement: 0; n receipt ofan a issued electronically plication an acknowledgement shallle © the applicant in FORM GSP REG-02. Acknowledgementation bs Step IL: Verification of the application and approval: Aficr submission of application verification of the application is done by the proper officer in following manner: ication of the applic approval Everythi found to be in order 1) Approval of the grant of registration: The application shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of Tegistration to the applicant within three working days from the date of bmission of application. in case of Deficiency: Where the application submitted is found to be deficient, bither in terms of any information or any document required to be furnished, where the proper officer requires any clarification with regard to. any ormation provided in the application or documents furnished therewith, may issue a notice to the applicant electronically in FORM GST REG-03 in three working days from the date of submission of application and the applicant shall furnish such tion, information or documents ectronically, in FORM GST REG-04, within seven working days from the late of receipt of such intimation. On the receipt of clarifieation, i documents the proper officer can take following aetions: Approval of application: Where the proper officer is satisfied with the clarification, 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 clarifieation or information or documents. Rejection of application: Where no reply is furnished the applicant in response to the notice ined within the praia ‘the proper officer is not satisfied with the clarification, information or uments furnished, he shall, for reasons to be recorded in writing,212 068 ang re} GST REC (3) Deemed approval or r ct such application and inform the applic b, int electronic, "i egistration; ‘The application for shall be deemed to have been approved in following cas Brant of 04; "hy within 7 working days fro date of receipt of clarification (a) Within three working days: If the proper offic within three working days from the fails to take any aig 1¢ of submission of application If the proper officer fa Is to take any actiog within seven working d ys from the date of receipt of clarificatig, d by the applicant, istration certificate: Provisions related with issue are given as below: (6) Within seven working day; information or documents furnishe Step IIL: Issue of reg registration certificate () Grant of registration certificate and GS On ieenes OMe Cone ern COTE cer eto Seay Crea a a tea eae ea ne limit (0 issue of certificate (1) Grant of registration certificate for grant of registration a certificate of showing the principal place of business shall be made available to the appl and Services Tax Identification Nu and Services Tax Idenific following format (a) First ewo digit: two characters for the State (b) Next 10 digit: ten characters for the py Collection Account Num (0) Next two digits two chegistation : (d) Next one digit: one ¢ hecksum ¢ haracter. FIRST NEXT NEXT two characters. ten characters two characters ae eee ) (CATASG3544) (12) ie State code [=] entity code checksum. (2) Effective date of registration: Effective date of registration can be different if following situations date on which the person becomes liable to registration date of grant of registration Timely: In case the application for registration has been submitted within thirty days Not Timely: In case the application for registration has been submitted after thirty days (i) If the application is made with in time: The registration shalll be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within thirty days from such date. If the application is not made with in time: Where an application for registration has been submitted by the appl thirty days from (ii) the date of his becoming liable to registr registration shall be the date of Dee of re pt i i +: Every certi 3. Digitally signed by the proper officer: Ever available on the Common Portal shalll be digitally under the Act.« Secticm D (1) Leery person when in labile rip be en oe section 22 OF sections 24 shall apple five seqzeneatiom me woe Union territory as which fe lab waft 0 diame fpich he becomes biable to regecranom, on such meaner conditions 2s man be prescribes: ‘ ch SAKE edaie oo to such * (©) Generally or marmally: According t sctem 35 (@) cecey Fese ‘state — regatered wader section 22 oe seutam 3 hail ages He, «Sass sock Sate ox Uninn aces aa A eS eS Neppty from the terrivarial wastes of Badia: Excey pesean whe ma S ssp from the teceRontaR waters ff Been ail eta eg he coastal Rate oF URAOR RERREY MaKe AE AA NIge — 2 ation. (@ Next one digit: one checksum character GSTIN 22CATASOSS4A1Z5 NEXT NEXT FIRST one character two characters ten characters two characters @2) (CATAS63544) a, 2 State code PAN or TAN centty code checksum (2) Effective date of registration: Effective date of registration can be different if [Beet ‘date on which the person becomes liable to registration following situations: Timely: In case the application for registration has been submitted within thirty day Not Timely: In case the application for registration has been submitted after date of grant of registration thirty days (i) Ifthe application is made with in time: 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 thirty days from such date. (ii) If the application is not made with in time: Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming iable to registration, the effective date of he date of grant of registration. 3. Digitally si by the proper officer: Every certificate of registration ipitally Sea Pert “hall be digitally signed by the proper ae available on the Commo) under the Act registration shall be ¢