SHIVAM 19/20111

REGISTRATION
MEANING OF REGISTRATION
GST Registration is a process by which a taxpayer gets himself
registered under GST. Once a business is successfully
registered, a unique registration number is assigned to them
known as the Goods and Services Tax Identification Number
(GSTIN). This is a 15-digit number assigned by the central
government after the taxpayers obtain registration.

Advantages of Getting Registered under GST

1. Advantages
2. Input tax credit: Once the output taxes are paid the
producers and service providers will reduce the tax they
have already paid on their products by the sum they
have paid. The total tax burden for manufacturers or
service providers likely decreases. Therefore, lower
prices in still more consumption.
3. Tax evasion: The input credit applies to the recipient i.e.
producers or service providers only if the specifics are
given by the supplier as a return. This supports the
suppliers of products and services and thereby tends to
control avoidance of taxation.
4. Composition schemes for small businesses: Most small
companies have reduced tax and compliance burden.
Therefore, the choice of the use of composition schemes
can be beneficial to small businesses with revenues
between 20 and 75 lakh rupees.
5. Improved efficiency of logistics: Restrictions on the
transfer of goods between states have been lessened
with the introduction of GST (one country, one tax
scheme). Previously, several warehouses had to be
managed to prevent the new GST and state entry taxes.
Thus, increasing the overall cost of operations. As an
outcome of GST, warehouses are setting up units at key
locations, rather than every other city.
6. Regulation of unorganized sector: Earlier textile and
construction industries were mostly unorganized and
unregulated. Under GST, there are arrangements for
online payments and compliances. The responsibilities
and regulation of such sectors are thus brought in.
7. Removes the effects of the cascading tax: GST is
systematic and is structured to remove the cascading
impact, which implies the tax on a tax scheme where
the tax burden was carried through at any point of the
sale. As a result, the value of the product or service has
risen. The effect of tax directly lies in the cost of goods
and services, which eliminates this cascading effect. The
cost of a tax is transferred close to the customer which
supports the sector by improved cash flows and also the
working capital management.
8. Transparency: GST is a clear tax structure where
licensed retailers do not have a cost and hidden taxes.
The cost of conducting business would be smaller.
9. Higher threshold for registration: Earlier tax laws
allowed companies with a turnover of more than 5 lakh
rupees liable to pay VAT. Different states had different
value limits. The threshold in the GST system has
however been raised to 20 lakh rupees. This would
exempt smaller businesses and service providers.
10. Lesser Number of Compliances: Previously, each
tax levied had its returns and enforcement. For example,
monthly returns were filed, service taxes were paid
monthly and VAT varied in each region. However, there
is less compliance following the imposition of GST. Only
one single return has to be filed.
11. Defined treatment for e-commerce operators:
Until the introduction of GST, the e-commerce market
did not describe the supply of goods. Some states
recognized these as enablers or intermediaries which
did not allow them to file for VAT. All these unequal
treatments have been withdrawn under GST.
Disadvantages of GST
12. Short term business challenges: The move to GST
has disrupted the working capital of companies in their
starting phase, owing to the input credit lock-up.
13. Online taxation system: Under the previous tax
scheme, invoicing was performed with pen and paper.
 Under the GST system, the entire system was digitalized.
It became a technically far-reaching transition that was
challenging for smaller firms to embrace.
14. Multiple registrations: For organizations with
branches in more than one state in India, it is extremely
tedious to comply with the GST rules. There is no single
compliance with the same, contrary to popular opinion.
They will have to register with each state and obey
compliance procedures.
15. Various GST types: The concept of one country,
one tax affects the compliance system of GST which
includes CGST, SGST, and IGST.
16. Complexities for the businesses: The GST Act has
provided the power of companies to central and state
governments. Thus, connecting the bylaws. This has
increased the uncertainty for many entrepreneurs
around the country.
17. Being GST-compliant: small and medium
companies have stayed away from the tax system. With
GST imposed, they had to learn immediately the
complexities of this tax scheme. They were also required
to issue GST-compliant invoices.
18. Increased operational cost: Organizations had to
prepare employees to comply with the GST which thus
raised operating costs. The alternate option was to
recruit tax professionals equipped to process the
modifications.
 19. Indigenous Manufacturing: In contrast to the
‘Make in India’ campaign, GST affects the production
industry because the tax exemption has been lowered
from the annual turnover of Rs.1.5 crores to Rs.20 lakh
for excise duty.
20. Distribution of revenue: Revenue sharing for
products and services specified in the corresponding list
is a point of conflict.
21. Effect on discount and reward programs: GST
affects rebate and incentive schemes given that the
items are being charged on the price’s pre-discount.
Concerning this, earlier products were taxed after the
reduced rates.
SECTION 22 OF GST ACT- PERSONS LIABLE FOR REGISTRATION
(1) Every supplier shall be liable to be registered under this Act in the
State or Union territory, other than special category States, from
where he makes a taxable supply of goods or services or both, if his
aggregate turnover in a financial year exceeds forty lakh rupees:
Provided that where such person makes taxable supplies of goods or
services or both from any of the special category States, he shall be
liable to be registered if his aggregate turnover in a financial year
exceeds ten lakh rupees.
(2) Every person who, on the day immediately preceding the
appointed day, is registered or holds a license under an existing law,
shall be liable to be registered under this Act with effect from the
appointed day.
(3) Where a business carried on by a taxable person registered under
this Act is transferred, whether 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.
(4) Notwithstanding anything contained in sub-sections (1) and (3), in
a case of transfer pursuant to sanction of a scheme or an
arrangement for amalgamation or, as the case may be, demerger of
two or more companies pursuant to an order of a High Court,
Tribunal or otherwise, 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 or Tribunal.
Explanation. ––For the purposes of this section, ––
(i) 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;
(ii) the supply of goods, after completion of job work, by a registered
job worker shall be treated as the supply of goods by the principal
referred to in section 143, and the value of such goods shall not be
included in the aggregate turnover of the registered job worker;
(iii) the expression “special category States” shall mean the States as
specified in sub-clause (g) of clause (4) of article 279A of the
Constitution. In simple word, one can say that any supplier who is
having aggregating turnover in a financial year exceeding 40 Lakhs,
except in case of special category states. In case of special category
states a person is liable for registration if his aggregating turnover in
a financial year exceeding 10 Lakhs. Further, if any person is already
registration or hold a license in any existing Act, then he shall be
liable for registration under the Act. Here special categories states
include Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh
and Uttarakhand.
SECTION 23 OF GST ACT- PERSON NOT LIABLE FOR REGISTRATION A
person shall not be liable to take registration under the Act if he is a.
Engaged in any business of supplying goods or services which are not
liable to tax or wholly exempt from tax under Act or under the IGST
Act. b. an agriculturist, to the extent of supply of produce out of
cultivation of land. Further, the government can also exempt any
person from taking registration through a notification in the official
gazette.
SECTION 24 OF GST ACT- Compulsory registration in certain cases
Here is the list of persons who are compulsory required to get
themselves registered under the 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) of
section 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
on behalf of other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered
under this Act;
(ix) 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;
(x) every electronic commerce operator;
(xi) 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
(xii) such other person or class of persons as may be notified by the
Government on the recommendations of the Council.
Registration limit in case of goods

GST registration is mandatory for every person who is engaged in

the exclusive supply of goods and his aggregate turnover exceeds Rs
40 lakh in a financial year. Earlier, the limit was 20 lakhs for a
supplier of goods. However, the same was increased to 40 lakhs vide
notification No. 10/2019-Central Tax, dated 07.03.2019
Aggregate turnover includes:- Taxable Supply including supply to distinct
person having same PAN (Table 3.1(a) of GSTR-3B) Zero Rated Supply (Table
3.1(b) of GSTR-3B) Nil Rated Supply and exempted supply (Table 3.1(c) of
GSTR-3B) Non GST Supply (Table 3.1(e) of GSTR-3B) Taxes other than GST
Value of outward supplies of goods and services on which the recipient is
required to pay tax under reverse charge mechanism Goods supplied to job
worker on principal to principal basis Goods received from job worker on
principal to principal basis For an agent, the supplies made by him on behalf of
all his principals would be included while calculating aggregate turnover.
Exclusion in Aggregate Turnover: - Aggregate turnover does not includes: -
Value of inward supplies of goods and services on which the recipient is
required to pay tax under reverse charge mechanism (Table 3.1(d) of GSTR-3B).
However, the value of such supplies would continue to be part of the
‘aggregate turnover’ of the supplier of such services. Amount of central tax,
state tax, union territory tax and integrated tax and compensation cess Goods
supplied for job work or received back after job work under section 143 of
CGST Act, 2017 For a job worker, the following supplies would not be included
in his aggregate turnover: 1. Goods returned to the principal 2. Goods sent to
another job worker on the instruction of the principal 3. Goods directly
supplied from the premises of the job worker by the principal. Transactions
which are neither supply of goods nor services i.e., Schedule III of CGST Act,
2017 as amended by CGST (Amendment) Act, 2018.

Benefits of Voluntary Registration Under GST

There are various shortfalls of the compositions scheme and by the suggestion
of the experts, it is assumed that these shortcomings will be treated well under
the voluntary registrations. There are some benefits associated with the
voluntary registration as discussed below:

 Benefiting the buyers for the obvious reasons, the registered dealers can
provide their community a privilege of the input tax credit as the dealer
can issue tax invoice which will be further used for the availing of the
input tax credit. This will be a major point that will help the business unit
to increase its customer base.
 Voluntarily registration brings ITC as the voluntary registrants can avail
the input tax credit on all the purchases and services availed by them.
Ultimately making the business margins prevailing the profitability point.
 Hassle free Interstate registrations as the GST registrants are free to do
the interstate transactions with lesser restrictions which in turn make
the business units more comprehensible and will also have a wider
customer base across the nation. Even Small and Medium-sized
enterprises (SMEs) are benefited with the move and have the option to
set up online stores and can start their trade with other states on the go.
 GST registration will grant better compliance with the trading
community as the rating based on the compliance will be fruitful for the
compliance strict business units and will expand their customer base on
behalf of their active presentation int eh market. The compliance rating
will be based on timely return filings and tax payments as for the
knowledge.

What is Suo Moto Registration under GST?

Where a person who is liable to be registered under GST fails to
obtain registration, Tax Officials working in enforcement wings
of their respective State/Central Tax Department, can initiate
the process of generation and allotment of Temporary ID
through the Suo Moto registration facility available to them in
Back Office GST Portal. The Tax Officials in the role of
Registration Enforcement can initiate the Suo Moto registration
to deposit the amount collected from unregistered persons
especially during enforcement proceedings.
Meaning of Casual Taxable Person (Section 2(20)):
Casual Taxable Person (CTP) 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/UT where he
has no fixed place of business.
2. Meaning of Non-Resident Taxable Person [Section 2(77)]:
Non-Resident Taxable Person (NRTP) 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
It may be noted that—
— A CTP does not have a fixed place of business in the State/UT
where he undertakes supply though he might be registered with
regard to his fixed place of business in some other State/UT, while a
NRTP does not have fixed place of business/residence in India at all.
— A CTP has to undertake transactions in the course or furtherance
of business whereas the business test is absent in the definition of
NRTP.
— A casual taxable person (CTP) or a non-resident taxable person
(NRTP) shall apply for registration at least 5 days prior to the
commencement of business
— PAN is not necessary for non-resident. A non-resident taxable
person may be granted registration under section 25(1) on the basis
of such other documents as may be prescribed.
Section 2(77) of CGST Act defines Non-resident taxable person
(NRTP) as any person who occasionally undertakes transactions
involving supply of goods /services, whether as principal/agent/in
any other capacity, but who has no fixed place of business/residence
in India. Therefore, it covers all such person who is involved in supply
of goods/service whether or not such supplies are taxable. However,
Section 24 of CGST Act requires mandatory registration of NRTP
making taxable supplies ignoring the threshold limits. NRTP cannot
opt for composition supply. The NRTP can make taxable supplies only
after the issuance of the registration certificate. Registration: A NRTP
is not required to apply in normal application for registration being
filed by other taxpayers. A simplified form GST REG-09 is required to
be filled. A non-resident taxable person has to electronically submit
an application, along with a self-attested copy of his valid passport,
for registration, in FORM GST REG-09, at least 5 days prior to the
commencement of business at the Common Portal. A business entity
incorporated or established outside India, has to submit the
application for registration 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. The application
for registration made by a NRTP has to be signed by his authorized
signatory who shall be a person resident in India having a valid PAN.
On successful verification of PAN, mobile number and e-mail address
the person applying for registration, as a NRTP will be given a
temporary reference number by the Common Portal for making the
mandatory advance deposit of tax for an amount equivalent to the
estimated tax liability of such person for the period for which the
registration is sought. The registration certificate shall be issued
electronically only after the said deposit appears in his electronic
cash ledger. The amount deposited shall be credited to the electronic
cash ledger of the Non-resident person. The registration certificate
shall be valid for the period specified in the registration application
or 90 days from the effective date of registration, whichever is
earlier. The extension of registration can be applied in form GST Reg-
11 before the end of the validity of registration granted to him. It can
be further extended for period not exceeding 90 Days. These
extensions will be allowed only on additional tax deposit for the
estimated tax liability. Input Tax Credit: ITC shall not be available in
respect of goods/services received by a NRTP except on goods
imported by him. The taxes paid by a NRTP shall be available as
credit to the respective recipients in their GSTR-2A. Returns and
payments: As per Rule 63 of CGST Rules The NRTP shall furnish a
return in FORM GSTR-5 electronically through the common portal,
including therein the details of outward supplies and inward
supplies. Further, he shall pay the tax, interest, penalty, fees or any
other amount payable under the Act within 20 days after the end of
a calendar month or within 7 days after the last day of the validity
period of registration, whichever is earlier. Refund: The amount of
advance tax deposited by a NRTP at the time of initial registration/
extension of registration, will be refunded only after the person has
furnished all the returns required in respect of the entire period for
which the certificate of registration granted to him had remained in
force. Refund can be applied in the serial no. 13 of the FORM GSTR-5.
Revocation of Cancellation of Registration – Amendment in Rule 23
of CGST Rules, 2017 – As per Rule 23 of the CGST Rules, 2017 – A
registered person, whose registration is cancelled by the proper
officer on his own motion, may submit an application for revocation
of cancellation of registration, within a period of thirty days from the
date of the service of the order of cancellation of registration at the
common portal, or within such time period as extended by the
Additional Commissioner or the Joint Commissioner or the
Commissioner, as the case may be, in exercise of the powers
provided under the proviso to sub-section (1) of section 30. (Italics
portion Inserted by CGST (4th Amendment) Rules, 2021) B. Standard
Operating Procedure for implementation of the provision of
extension of time limit to apply for revocation of cancellation of
registration– i. In the Finance Act, 2020, section 30 of the CGST Act,
2017 was amended (notified wef 1stJan, 2021 vide notification No.
92/2020- Central Tax, dated 22nd December 2020). The amended
provision provides for extension of time limit for applying for
revocation of cancellation of registration. ii. Application may be
made to the Additional or Joint Commissioner, as the case may be,
for a period not exceeding thirty days. iii. The Commissioner, for a
further period not exceeding thirty days, beyond the period specified
above c. Procedure for revocation of cancellation – i. If revocation is
applied within 30 days –It has been provided in section 30 of the
CGST Act, any registered person, whose registration is cancelled, may
apply in FORM GST REG-21, for revocation of cancellation of
registration within 30 days from the date of service of the
cancellation order. ii. If revocation is applied beyond 30 days but
within 60 days – In case the registered person applies for revocation
of cancellation beyond 30 days, but within 60 days from the date of
service of the cancellation order, the following procedure is specified
for handling such cases: